By Kelly O’Sullivan
Twitter: @AzNewsmedia

As many as 36 Litchfield Park businesses severely impacted by the COVID-19 pandemic could receive grants of up to $10,000 as part of a city business relief program in the works.

During its regular virtual meeting Aug. 19, the Litchfield Park City Council directed city staff to formulate a plan to award up to $360,000 in CARES Act relief funds to local businesses in two increments. The first would make $180,000 available to the hardest-hit businesses in a few weeks, with the remainder dispensed after the first of the year if there is still a need and the city’s finances permit.

Litchfield Park received $738,895 in Arizona CARES Act funding, Finance Director Paige Peterson told the council, recommending that half be used for business relief with the remainder held to offset any losses in tax revenues this fall. To date, the city has fared well in that area, thanks to an increase in revenues at places like Frys Marketplace.

“There is still uncertainty surrounding COVID-19 and what the potential revenue impacts could be, especially when flu season hits,” Ms. Peterson said.

A recent business survey conducted by the city found that 51% of the 40 respondents said they were greatly impacted by the pandemic, and 47% said they lost 75% of their revenue after Gov. Doug Ducey issued an executive order in mid-March closing businesses deemed non-essential. Many businesses have since reopened, but bars, gyms, fitness centers and theaters have remained closed as state health officials try to reduce the novel coronavirus’ spread. In July, Litchfield Park closed its public pool for the summer after employees tested positive for COVID-19.

“That’s a pretty significant impact to some of our local businesses,” she said, noting that 54% of businesses applied for and received CARES Act assistance.

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Ms. Peterson initially recommended a timeline that would see the grant application period open in January 2021 and all of the grant money awarded March 1-31.

“The downside that I can see to waiting so long is if there are local businesses in need, this is quite a wait for them,” Ms. Peterson said. “On the other hand, I think it’s probably wise for us to wait and see how our fall revenues peform.”

Councilmembers were concerned that might be too late for some businesses.

“I think most of our restaurants are probably doing OK, but some of our other smaller businesses ... nail salons, hair salons, things that have really struggled with reopening” might not be around to apply after the first of the year, Councilwoman Lisa Brainard-Watson said. “Is there any way of doing a partial disbursement ... so we can do part now and part in the spring when we see how the rest of our tax ramifications fall out?”

Councilman Ron Clair and Mayor Thomas L. Schoaf agreed.

“If we wait until March, that’s a year of time that they’ve struggled with corona. We have been able to maintain tax revenue so far this year. I’m definitely all for being cautious, but if we wait until March, these businesses that are struggling are not going to be around.” — Councilman Ron Clair

“Your analysis was very well done. It’s very conservative and makes sure the city is protected and our financial position is protected,” Mr. Schoaf told Ms. Peterson. “Having said that, I think that the points that have been raised by Councilmembers Clair and Brainard-Watson are important.”

Proposed eligibility requirements

Ms. Peterson proposed the following requirements for businesses applying for relief grants:

• Must have a physical presence with the Litchfield Park city limits;

Businesses that would not be eligible to apply would include publicly-held companies, franchisees not licensed in the state, real estate investment firms, lending businesses and multilevel marketers.

When staff has a proposal in place, the council will schedule a special meeting to review it, Mr. Schoaf said. Once the program is approved, the city will advertise it, accept and review applications, then award the first round of grants.

Watch the full council meeting here:

Kelly O’Sullivan can be reached at kosullivan@newszap.com or 760-963-1697.