Title/Name/Summary
Additional Business Assistance Recommendations
History
At the December 7 Committee of the Whole meeting, the Village Board reviewed the history of assistance the Village has provided to the business community during the COVID-19 pandemic. The Board also reviewed and discussed additional business assistance options that the Village could implement. Based on the Village Board’s feedback and recommendations, the following options are being proposed:
Liquor license fee waivers for Class A, Class C, Class E, Class H, and Class M. These classes represent all restaurants with liquor licenses (78 in total) and account for $97,350 in budgeted liquor license fee revenue.
Additional Village-wide property tax relief in the amount of the remaining Shop Orland Park net proceeds post Dine Orland Park, estimated to be $260,000.
Business license fee waivers or reductions are not recommended because business licenses are not classified in the same amount of detail as liquor license fees by the Village. In order to distribute the fee waivers in a manner that would only benefit impacted businesses, the Village would need to clearly define the difference between an impacted and non-impacted business and then review all licensed businesses (1,318) against the criteria. The other avenue would be to reduce business license fees for all businesses by a specific amount (e.g. 10%) to avoid unequitable distribution. Given the Village Board’s previous comments, the recommendation is to not waive business license fees and distribute the additional assistance via property tax relief.
Waivers or reductions to the crime free tri-annual inspection fees and annual registration fees are also not being recommended. Waiving the $150 rental inspection fee would only benefit 1/3 of rental property owners (any inspection due in 2021). The property owners that paid the same rental inspection fee in 2019 or 2020 would not receive an equal benefit. The Village is planning to review this fee schedule in 2021 and may modify the fees so property owners pay a flat fee annually for both registration and inspections, even though a property’s inspection only happens once every three years. Doing so results in a predictable annual expense and equitable distribution of costs, even if property ownership is transferred in the 3-year period.
Financial Impact
If the Board chooses to approve the liquor license fee waivers for Class A, C, E, H, and M and the additional property tax relief, then Village revenue will be adjusted in the first budget amendment for the 2021 budget.
Recommended Action/Motion
I move to approve liquor license fee waivers for Class A, Class C, Class E, Class H, and Class M, and
I move to approve additional property tax relief in the amount of the remaining Shop Orland Park net proceeds after the completion of the Dine Orland Park program.