​The Mill Valley Chamber board and staff are deeply saddened by yet another instance of  violence directed at a person of color. We mourn with the nation and stand united with the black community to express our sorrow and outrage at the senseless death of George Floyd. 
 
This horror, when combined with the frustrations related to loss of livelihood, freedom and power, has struck a chord in our country we feel can not be ignored. We all must seize this moment, and we will certainly do our part, including participating in peaceful protests and demonstrating our solidarity with the pursuit of racial justice.
 
We are committed to sustaining, supporting and growing a community in which each of us can live without fear of violence or discrimination and have the same economic opportunities that all of humanity deserves. Our mission is economic and community vitality for all, and we will work toward making Mill Valley a welcoming place for people of color to live, work and visit.
 
To paraphrase Edmund Burke, the only thing necessary for the triumph of evil is for good people to do nothing. We hear that call and want to be a force for change. Indeed, one of our major roles and strategic goals as an organization is to convene our broader 94941 community around important issues. We commit to do this to address racial justice and economic opportunity in Mill Valley. This statement is a first step and we’re committed to doing the hard work in front of us.

Let’s go al fresco!

The Mill Valley City Council unanimously approved a resolution and an urgency ordinance Monday night allowing Acting City Manager Alan Piombo and his staff to approve applications from restaurants and other businesses for permits, variances and license agreements on a temporary basis until at least the end of November for outdoor uses. 

The move is designed to provide businesses with additional ways to use outdoor space to compensate for the loss of indoor space due to social distancing requirements related to the COVID-19 crisis. The City's staff report and related documents are available HERE. 

The decision Is effective immediately, and restaurants and other businesses seeking to use outdoor public or private spaces can file applications to do so starting Tuesday. The approval comes more than 10 weeks since the first shelter in place order effectively shut down restaurants for everything except takeout and delivery service, Mill Valley residents have outdoor dining options to enjoy a meal in a safe, measured, socially distanced way.

“Our local businesses have been taking a beating since the first shelter in place order went into effect in March,” Piombo told the Council in opening the hearing.

“I’m deeply concerned about our restaurants in town,” added Vice Mayor John McCauley said, pointing to the oft-repeated data point that it takes 2-3 takeout meals for a restaurant to generate the same revenue from a single dine-in customer. “They are really a major part of our vibrancy. I have been trying to eat out way more on a takeout basis, and as I do, it has been extremely depressing. There is nobody there. They are not going to make it unless the community steps up and supports them.”

To that end, County of Marin officials said late last week that restaurants could open for outdoor dining on June 1, a last minute announcement despite all indications that restaurants would have to wait several more weeks for the opportunity. However, City of Mill Valley and Mill Valley Chamber officials had been working for weeks to lay the groundwork for such a possibility, hoping to give restaurant owners ample time to prepare.

Led by Piombo, McCauley, Councilmember Urban Carmel, Piazza D'Angelo co-owner and Mill Valley board chair Felicia Ferguson and City and Chamber staff, the group created a framework for restaurants to choose from a range of options to utilize the outdoor space around them. The options were driven by input from dozens of restaurant owners, and fall into three categories:
​

• Private use of private space (adding seating in private parking lots like those of Bungalow 44 and Mill Valley Lumber Yard (Watershed, Flour Craft, BOL) and the small Miller Ave shopping center downtown that contains BooKoo, for instance).
• Public use of private space (adding seating and/or parklets in parking spaces, on sidewalks and surrounding areas). 
• Public use of public space (allowing people to consume their takeout in the Depot Plaza, socially distanced), as well as in other similar public spaces. Customers will be required to maintain social distancing and take their trash with them when they leave the plaza.

Those options will likely be altered or expanded upon as conditions change and in response to the needs of restaurants and their customers. The same framework will be available to other business types like retailers looking to expand onto the sidewalk and fitness gyms looking to hold outdoor classes, once those uses are permitted.

“Government tends to be breaks, but in this case, you want to be gas and let’s make it as easy as possible for our restaurants and commercial businesses,” McCauley added.

“This is a pilot program and it’s exciting," Carmel added. “The businesses are excited about doing this thing, and the community is very excited about this. There will be a lot of things that we’re going to have to figure out – we will have to be light on our feet and problem solve as we go along. But we are pretty far ahead on this thing.”

"We are extremely grateful to the City for their efforts in expediting the creation of a framework to help our restaurants choose from a variety of outdoor dining opportunities, as well as a clear process to do so," said Ferguson. "The City has shown the requisite sense of urgency for this moment and has been a fantastic partner in doing the heavy lifting around the myriad legal and logistical issues related to these new options."

Given the late arrival of the news on outdoor dining, many local restaurants will continue to focus on takeout/delivery in the coming days as they move towards adding a range of outdoor dining options. Look for news in this space soon on those new outdoor dining options from restaurants around town.

Per the County of Marin's guidelines on outdoor dining, seated tables will be limited to no more than 6 people, all whom must  must be within the same household group. As expected, there are significant requirements related to sanitization.

Indoor dining is expected to get the green light in the coming weeks along with extensive guidelines for both restaurants and their customers to follow to ensure a safe experience for all involved. Stay tuned.

“If our residents can get comfortable that the social distancing restrictions in place will allow them to eat dinner outside at restaurants safely, and if you’ve got the economic capacity, I would urge our citizens to get out and support outdoor dining – and the use of the outdoors by other businesses as they take advantage of it," McCauley said.

Here is everything you'll need to file.

Restaurants:
Outdoor Dining Guidance & Best Practices
Guide for Temporary Outdoor Use: Checklist & Application

Required Forms and Documents:

• Statement of Intended Use describing proposed area of use, outdoor use, food and beverage service, hours of operation. Please indicate if the temporary outdoor use sought is one of the following categories: (i) expanded use of adjacent private spaces (e.g., private parking lots), (ii) use of portion of adjacent public right-of-way (e.g., sidewalks, parklets), and (iii) use of portion of other public spaces (e.g., Depot Plaza).
• City of Mill Valley Business License
• Certificate of Insurance (add City of Mill Valley)
• Written Consent of Property Owner/Tenants Sharing Space (shared private property owners)
• Site Plan Diagram (8.5”x 11”)
• Photographs (proposed location)
• ABC License (if alcohol is served) and evidence of adequate liquor liability insurance for proposed operations.

Retail
Curbside & Outdoor Retail: Updated Best Practices & Guidance

Questions? Email us.

Here's a note from Marin Clean Energy:

"We know local businesses are the backbone of our communities. MCE is sharing an opportunity to promote your business, especially if you have a majority owned Women, Minority, Service Disabled Veteran, or LGBT business enterprise. Join MCE's free virtual workshop on June 3 at 3pm to learn how to be listed on California's multi-million dollar Supplier Diversity Clearinghouse database. Utility companies and state program vendors use the Supplier Diversity Clearinghouse database to search for suppliers (from restaurants to retail and services of all types) to help them meet the State’s procurement requirements. Learn from industry experts about program eligibility and how to certify. We look forward to seeing you there!" https://certifyamplify.eventbrite.com

Check out this video for more info on the workshop. 

On a related note, MCE is offering free EV charging at its MCE San Rafael location:

Free EV charging is now available at MCE’s San Rafael office, located just two blocks from downtown San Rafael's Fourth Street, at 1125 Tamalpais Avenue, and close to Hwy 101, until further notice. If you have an EV and driving through San Rafael, MCE wants to offer support during this challenging time.
 
MORE INFO ON MCE.

In a move straight out of the "give 'em the bad news first" department of communication, Marin County health officials, in collaboration with six other Bay Area jurisdictions, on April 28 extended the shelter in place (SIP) order, which took effect March 17 and was set to expire May 3, through the end of May.

​One day later, Marin County Public Health Officer Matt Willis announced the easing of restrictions on a number of businesses that operate outdoors, including all construction projects as long as the project complies with the order's safety protocols, as well real estate transactions without open houses and limitations on in-person viewings. The list of businesses that can reopen on May 4 also includes wholesale and retail nurseries, landscapers, gardeners, and other businesses that primarily provide outdoor services as set forth in the order.

Other activities that can resume under the new order include residential moves and the use of certain shared outdoor recreational facilities that were previously ordered closed, like skate parks, but not others that involve shared equipment or physical contact. The April 17th order requiring face covering remains in effect.

Willis said that Marin has, as of April 29, 224 confirmed cases of COVID-19, with 12 deaths and 43 hospitalizations.

He characterized the first phase of the SIP as “the first inning of the game. “We were successful thanks to all the amazing work and sacrifices that everyone in our community made to really limit transmission,” he told the Marin County Board of Supervisors on April 28. “Phase Two is going to be a gentle, delicate process of reopening that we can eventually regain the ability to gather for education and some business reopening.”

Willis noted the coming weeks and months will be entirely driven by the key metrics. That includes adequate testing capacity, as Marin is currently testing 300 patients a day and needs to get to 5,000 per day. That increased testing capacity will likely “see more transmission of disease,” he said.

Testing efforts will be coupled by contact tracing and monitoring hospitalizations and 911 calls related to COVIF-19, he added.

​Noting that nearby jurisdictions like Sonoma County are moving toward a less restrictive SIP, Supervisor Damon Connolly asked Willis if Marin was wedded to the SIP decisions of the Bay Area jurisdictions with which it has operated so far. “The gates to move from one phase to the next will happen at a different pace for each county,” Willis said. “We don’t expect that every county will have the same experience. We’ll have the freedom to move forward more quickly but we’ll be looking to the science to guide us.”

“We need to engage in balanced conversations about the harms of the SIP,” Willis said, noting that the first part of May will involve an “intense period of monitoring but also preparation, working with the business sector on what safe business practices will look like.”

Willis said he hoped to “provide businesses with clear guidelines and on some level empowerment about how they can conduct business in a safe way and how we can open over time in a way that protects public health and yet is cognizant that people need to get back out there in their lives as well.”

County Administrator Matthew Hymel announced the launch of Marin Recovers, a website that will serve as the foundation of “a safe and phased reopening. We’re convening a group of industry advisors” on subjects that include restaurants, retail, construction, parks and outdoor activities, general office space, summer camp and youth opportunities, transportation, hotels, personal services and the arts. (The Mill Valley Chamber has submitted names of a number of local industry leaders to provide guidance on health and safety best practices for their respective industries. We're also providing industry-specific feedback to county and state leaders on what a safe, successful reopening look like for each major industry sector on Mill Valley).

“Those advisors will inform how will these industries modify their activities over time to reduce their risk to COVID-19 so that we can guide them to plan for the future months ahead.

The announcements came amidst indications from Gov. Gavin Newsom that California as a whole is "just a few weeks away, not months away, from making measurable and meaningful changes to our stay-at-home order. That is a very optimistic point to emphasize.”

In a series of tweets, Newsom said, "California is flattening the curve, but the reality is #COVID-19 is not going away soon. Our re-opening must be gradual, guided by public health and science, and will be done in the following:

Nearly two months ago, the Mill Valley City Council gave the green light to a $2 million overhaul of downtown sewers, sidewalks, storm drains and streets, the first phase of a multi-year infrastructure overhaul.

That move was quickly followed by a since-extended shelter in place order to combat the COVID-19 outbreak, sending all manner of plans, programs and projects, big and small, careening towards the back burner. Now City officials ate looking to utilize the likelihood of yet another extension of the shelter in place order into June to do the most intensive sewer work while the vast majority of businesses downtown remain closed. Work could commence as soon as the week of April 13.

"Expect to see preliminary activities on site next week such as utility markings, construction staking, mobilization and equipment staging and work crews," City officials announced. "This is a significant shift in the timeline, which was originally slated to begin in May or June."

The move seeks to leverage a shelter in place order that many regional officials expect to extend into June, with public schools throughout the Bay Area already closed for the remainder of the 2019-2020. In doing so, City officials hope to avoid having the project impact the critically important fourth quarter sales season that so many Mill Valley businesses rely on. Concerns about that possibility caused the project to be delated in 2019.

Public Works projects are identified as “essential businesses,” an update of the City’s sewer system is considered critical infrastructure, and providing safe public sewer systems and treatment is considered an essential service. Two other factors play into the City eyeing an accelerated Downtown Project timeline: 

• The City's sewer system is more than 67 years old, and I&I, or infiltration and inflow of water and debris, gets into cracks and joints and overloads the system to the point of overflows, one of which occurred in 2008 and caused the Sewerage Agency of Southern Marin to pay $2.6 million in fines and fees and mandatory reporting to the Environmental Protection Agency. The EPA requires that the City submit the Annual Sewage Spill Reduction Action Plan which includes annual sewer system rehabilitation. The City committed to the EPA in the 2019 annual report to conduct the sewer rehabilitation work identified in the downtown project scope this year. 
• The City must comply with Americans with Disabilities Act provisions to upgrade infrastructure. The Downtown area has been identified in the City’s Draft ADA Transition Plan for a number of upgrades including City sidewalks, curb ramps, crosswalks. The vast majority of the City’s curb ramps don’t comply with ADA regulations and that the roads “have surpassed their expected life and require rehabilitation.”

City officials K. J. Woods Construction Inc. from San Francisco was selected as the lowest of the seven bids on the project. They met with the firm this week and also had a virtual meeting of the project's Design Advisory Committee.

The City is exploring freeing up the City Hall parking lot by having those employees not already working from home park elsewhere to account for the loss of as much of 25 spaces at a time during the project.

City officials are also exploring the possibility of expediting the permit process and waiving fees for those property owners who seek to upgrade their own sewer laterals during the project.

MORE INFO ON THE DOWNTOWN PROJECT.
AND HERE'S THE LATEST UPDATE FROM THE CITY.

It's been three weeks since Bay Area counties issued a shelter in place order due to the COVID-19 outbreak (seriously, just three weeks).

That's three weeks since non-essential businesses were forced to closed, since restaurants had to quickly shift to serving takeout and delivery only, three weeks since many of our local businesses pivoted to virtual everything. 

In that time, many of you have applied for SBA Economic Injury Disaster Loans (EIDL) and are eagerly doing so for the "Paycheck Protection Program," a $350 billion program for businesses with less than 500 employees, i.e., every business in the 94941, whereby loans will be forgiven, functioning as grants, if the funds are used for payroll costs, mortgage interest, rent and utility payments and if businesses retain employees ​and employees receive at least 75% of their prior pay. 

In that time, the Mill Valley Chamber has been relentlessly hunting, and lobbying for, every manner of economic relief we can bring to local businesses. We successfully called for a ban on evictions related to income loss due to COVID-19, and we pushed for property tax deferment, with the County of Marin agreeing to allow COVID-19 and its horrific economic impacts as a consideration for those applying for a Penalty Waiver with the Tax Collector. We've also shared information with local businesses about ways to help your employees file for unemployment benefits as well as sick and caregiver leave.

The latest shelter In place order extends through May 3. Most major events are postponed or canceled for the foreseeable future. We're appealing to the broader 94941 community to support the legions of local businesses hanging on by a thread, including ordering takeout and delivery as much as possible.

So now what? Where do things go from here? How bad will it get and how can Mill Valley and its neighbors survive this horrific moment and prepare itself for the next phase, an eventual – likely in June at the earliest – lessening of sheltering in place and social distancing.

In a virtual chat this week with local and regional business and policy leaders, the Marin Economic Forum gathered a pair of acclaimed economists, MEF Chief Economist Robert Eyler and Jon Haveman of the National Economic Education Delegation, to dig into what's ahead.

"This is a health crisis fundamentally, but it turns out to be the perfect storm of economic difficulty on both the supply side and the demand side," Haveman said, who emphasized that there was no doubt that the "cure is much better than the disease." "In the absence of social distancing, there was a potential for this downturn to be deep but not terribly long. But with social distancing it will be much longer, and has already brought significant unemployment."

Both rejected the notion that the "cure has been worse than the disease," however. Haveman pointed to a $5.2 trillion benefit to social distancing vs $1.3 trillion cost, even considering the extended timeline and recession.

In some ways, the bigger question ahead is not when public health officials will be likely to lessen social distancing requirements, but when will the public itself feel ready to gather again, he said. 

Haveman and Eyler noted that Marin In particular relies heavily on retail, food, hospitality and visitor-driven industries. "Most of those jobs are going to go away for while," he said.

"A lot depends on when that flow of visitors to and through Marin will come back to have an experience north of the Golden Gate Bridge," Eyler said.

Eyler added that the vast majority of firms in Marin have less than 5 employees – more than 60 percent – and thus is more vulnerable as well. 

The pair's biggest takeaway was the critical need for local businesses to keep their just laid off or furloughed employees close. 

"It's extremely important to maintain these employee-employer relationships, so that at the end of this, flipping the switch back on is that much easier," Haveman said. 

A trio of additional takeaways:

• They credited the federal government for passing the $2 trillion economic rescue package last month. "It's a miracle that Congress was able to come through and pass what it did," Haveman said. "And the Federal Reserve has done in 188 days what it did in 18 months during economic recession of 2009."
• Businesses need to develop better business continuity plans. "This will not be our last pandemic," Haveman said. "You shouldn't only source products from China but a range of sources."
• Telecommuting. "This is an amazing experiment to tell us about the benefits of telecommuting," he said. "​We’re going to see a big ramp up in terms of telecommuting."

MORE INFO ON THE MARIN ECONOMIC FORUM.

Since the days leading up to the official Bay Area shelter-in-place order, the Mill Valley Chamber has been feverishly hunting for every form of relief for Mill Valley businesses amidst the Covid-19 outbreak.

That's included a ban on evictions related to income loss due to COVID-19, all manner of loans and grants (including the new PPP), timely webinars  and unemployment benefit tutorials for those that have lost their jobs amidst the pandemic.

But one form of relief has been a tough nut to crack: property tax relief, i.e., the County of Marin providing a way for people to pay their property taxes late but avoid paying the late fees and penalties associated with doing so.

Here's the full back story of the Chamber vigorous lobbying effort here.

The long and short of it is that Roy Given, the County of Marin's director of finance, said he was unable to waive lates fees and penalties prior to the April 10th property tax filing deadline. But he did allow that COVID-19 and its horrific economic impacts will be a consideration for those applying for a Penalty Waiver with the Tax Collector.

Those applications must be filed after April 10 and by May 15.

​COVID-19 Applications for Penalty Waiver can be submitted HERE.

​HERE'S A HELPFUL FAQ ON APPLYING FIOR THE WAIVER AND YOUR OPTIONS.

Questions? Contact the Department of Finance here or at 415.473.6133.

Contact the Mill Valley Chamber here.

UPDATE 4.23.20: The Senate and House of Representatives have both passed a new $484 billion coronavirus relief package, including more than $300 billion in additional funds for the Paycheck Protection Program (PPP) designed to bail out small- and medium-sized businesses (SMBs), according to the New York Times. 
According to the Marin SBDC, all applications that are already in the cue will be processed and people will still be able to get funding. If you submitted and are waiting to hear back, you still have a chance, and "some PPP banks are still accepting applications and may be able to fund those requests." The portal expected to open soon after the package is finalized. If you want to talk with someone at the SBA about your application, call 1-800-659-2955 (SBA Disaster Assistance Customer Service Center). It's open 24/7. 
Since the CARES Act was signed into law on March 27, a $2 trillion stimulus package related to the COVID-19 pandemic, small business owners have been scrambling to figure out how to put such a massive stimulus from the federal government to work for them.

In addition to $250 billion for direct payments to individuals and families, $250 billion in unemployment insurance benefits and $500 billion in loans for distressed companies, it contains the "Paycheck Protection Program," as it's called, a $350 billion program for businesses with less than 500 employees, i.e., every business in the 94941. 

That $350 billion comes in the form of loans, guaranteed by federal government, that will function as grants under certain conditions. The debt will be forgiven if the funds are used for payroll costs, mortgage interest, rent and utility payments and if businesses retain employees ​and employees receive at least 75% of their prior pay. The PPP will be ready to accept applications on April 3.

Companies can rehire employees in coming weeks without penalty. For businesses that reduce their headcount or reduce wages more than 25%, the amount of the loan forgiven will be reduced in proportion to payroll cuts, but the companies can rehire employees in coming weeks without penalty. The small business loans will be 2.5 times monthly payroll costs, although some groups in the travel and restaurant industries had sought four times operating costs. The loans come with a rate of 4 percent or below, and the maximum loan amount is $10 million.

A key component is that SBA Loan certified banks are processing and issuing the PPP loans. To date among local banks, that includes Bank of Marin, Redwood Credit Union, First Republic Bank and Wells Fargo. If you are a lender looking to participate in the program, GO HERE FOR MORE INFO.

We know that business owners like you want to know how to get in the queue, where to apply, what the application requirements are and on and on. The critically important next step is to get in touch with your bank, and get your objectives on their radar ASAP.

Here's an excellent set of FAQs on the PPP.
Here's an FAQ specifically for would-be borrowers.
Here's another extremely informative set of FAQs from Govern for California.
And here's the application.

Q: If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to COVID-19 before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?
A: Yes! In fact, federal officials are encouraging small business owners to apply for both. If you received an EIDL loan related to COVID-19 between January 31, 2020 and now, you are able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.
PPP Program is LIVE
Marin SBDC is a valuable resource, able to take business owners through the process step by step. SIGN UP HERE if you want their support.

Marin SBDC previously help webinars on timely topics like "Emergency Cash Flow Resources and Opportunities" and "Restaurants Responding to COVID 19."

[UPDATE 4.9.20]: We've heard from both regional business leaders, NorCal SBDC officials and many of you who have filed applications, and here's some new info:

• We're now learning about new information requested by lenders, including supporting documentation like 941 statements for the prior quarter, copies of W-3 statements and annualized payroll reports broken out by employee. HERE'S A SHORT VIDEO THAT HELPS YOU ACCESS THAT INFO.
• You should use all W2 folks (PT and FT) to calculate/submit the PPP amount requested but not 1099 folks (who can apply directly for a PPP).
• Forgiveness calculations are quite limited (for now, it does not include anyone who works less than 32 hours. You can’t combine people to make one FTE).
• If you meet the forgiveness criteria, 100% can be forgiven even if you ask for more than payroll (e.g. lease, rent, utilities) as long as at least 75% is for payroll
• Even if loans aren’t forgiven, the interest rates are attractive. 3.75% for disaster loan if a for profit; 2.75% for Disaster loan for a nonprofit and 1% for a PPP loan, up from .5% just a few days ago).
• Bridge loans, which are the usual alternative to the SBA and PPP programs are at prime plus 2-6%.
• If a business wants to be considered for the $10K advance in the PPP, go to SBA website and fill out, even if not applying for the Disaster loan. You can then apply for PPP.
• BOTH loan programs are SBA programs. It’s just that one is processed through your bank, the other directly through SBA.
• Wells Fargo just announced they hit their $10billion limit on PPP applications by clients.
• To find out which banks are doing PPP loans go to www.sba.gov/paycheckprotection/find

​Questions? Email us here and we'll get you the answer ASAP or connect with the best person to do so.

[UPDATE 3.31.20]: If you have suffered a loss of income related to COVID-19, the County of Marin’s Department of Finance wants to hear from you at 415.473.6154 or TaxCollector@marincounty.org.
The Marin County Board of Supervisors this morning voted to send an urgent letter to the State of California asking that the state offset a loss in revenue that would come from allowing for deferment of the second scheduled property tax payment on April 10 for those who can’t afford to pay it because of loss of income related to the COVID-19 outbreak. County Administrator Matthew Hymel and County Tax Collector Roy Given both explained the county’s predicament to the board.
​“Both the state and county have a shared interest to have those who are able to pay the property tax pay it,” Hymel told the board. “The loss of current outstanding property taxes right would be a tremendous hit to our public agencies providing critical services.”
Hymel asked the board if he could report back to them later on April 21 with additional options once the county gets a handle on the delinquency rate of property tax payments after the April 10th deadline. Given noted that the county’s usual “Penalty Review” process, which allows those who aren’t able to pay their property tax to have their case reviewed, now includes COVID-19 considerations. The review could allow for a waiver on late fees and penalties. County officials will be adding an FAQ on that process here. 

[UPDATE 4.2.20]: Given made it official that that the property tax deadline won't be changed.

Since the days leading up to the official Bay Area shelter-in-place order, the Mill Valley Chamber has been feverishly hunting for every form of relief for Mill Valley businesses amidst the Covid-19 outbreak.

That's included a ban on evictions related to income loss due to Covid-19, all manner of loans and grants (esp. the new PPP program, stay tuned for more), timely webinars  and unemployment benefit tutorials for those that have lost their jobs amidst the pandemic.

But one form of relief has been a tough nut to crack: property tax relief.

That's the concept of the County of Marin granting temporary tax relief to Marin County property owners, keeping in mind the very soon-to-arrive April 10th deadline. A no-fee, no-penalty deferment would (hopefully) have a cascading effect of passing along some of that relief to commercial tenants, many of which are completely shut down as "non-essential" businesses under the now-statewide order.

County officials have suggested that such a move would require state urgency legislation, so a group of City and Chamber officials sent letters urging North Bay legislators state Sen. Mike McGuire and Assemblyman Marc Levine to introduce emergency legislation. The MV Chamber sent a subsequent letter to county officials indicating that, with the State Legislature out of session, prospects for such emergency legislation seem dim.

"With one action, you can put critically important cash in the hands of residential as well as commercial property owners, who in turn can provide rent relief to their tenants through triple net leases and negotiations," Chamber officials wrote. "Deferring property taxes, without penalty, is the most direct and timely way you can make a difference and is consistent with State and Federal decisions to waive April 15th filing deadlines for all other taxes."

In a subsequent letter to constituents, Levine wrote that he'd personally reached out to County Administrator Matthew Hymel and members of the Marin County Board of Supervisors to give them legal options available to defer payment or waive penalties for taxpayers unable to make their property tax payment on time due to the COVID-19 pandemic. He noted that "a county tax collector is authorized to waive interest or penalties that would otherwise be imposed or collected with respect to a delinquent second installment of property taxes levied for the 2019-2020 fiscal year due to the COVID-19 pandemic."

He added that "the Board of Supervisors is authorized to approve an ordinance or resolution temporarily closing the tax collector's office, which would also delay property tax payments." Roy Given, the County of Marin's director of finance, could follow San Luis Obispo County Tax Collector James Hamilton's lead and require a property owner to make a written request for property tax deferment, allowing that COVID-19 hardship is a sufficient basis to grant a waiver. "Such a move provides distressed property owners with the comforting assurance if they follow the procedure, he’ll waive interest and penalties thus taking the guesswork out of what otherwise is a daunting process," according to Marin Independent Journal columnist Dick Spotswood.  "Roy Given can do the same if he wants to."

The Coalition of Sensible Taxpayers agreed, demanding today "that Marin County Supervisors immediately declare a public health emergency that includes closing the county tax collection cashier window now through at least May 8 (with further extensions as appropriate).  Doing so protects the health and safety of taxpayers who pay in person (to ensure timely payment and receive receipts) and also of public employees of the county tax office."

In a reply to the Chamber's letter, Given replied, "At the local County level, while we are responsible for the billing, collection and distribution of property taxes, we have no jurisdiction (and therefore no control) over the due dates and delinquency dates of property taxes ... However, I am working with the California Association of Treasurer Tax Collectors (Statewide Association of Tax Collectors) and am in communication with our local legislators to find the right solution Statewide. 
 
Given pointed property tax deferment seekers to the county's Penalty Review Process to consider the extenuating circumstances behind the delinquency and address unforeseen events and situations that a taxpayer may experience, including the current COVID-19 public health crisis. He added: "The COVID-19 situation is very fluid at this time and as such circumstances and information may change at any time."

The State of California Has the Power to Make This Work

But there's a bigger picture view of this effort as well. Property tax deferment likely distresses both county and local government officials concerned about a reduction in timely and much-needed property tax revenue as a result.

From the Mill Valley Chamber's perspective, this is essentially a liquidity issue that the State of California is uniquely capable of addressing. As one recent commentator said, we “can’t let a liquidity issue become a solvency issue.”

In his letter to constituents, Levine emphasized that, should such relief arrive, only those who need it should take advantage of it. "Taxpayers that are able to make their property tax payment on time should do so. But for many families and businesses, this is a difficult and uncertain time."
​
Contact the Department of Finance here or at 415.473.6133.
Contact the Marin County Board of Supervisors here or at 415.473.7331.
Contact State Assemblyman Marc Levine here or at 415.479.4920.
Contact State Senator Mike McGuire here or at 415.479.6612.
Contact the Mill Valley Chamber here.

Though it hasn't officially been approved in the House yet, the word from the federal government to small business owners (and many other groups) has been clear: help is on the way in the form of a $2 trillion stimulus package designed to bolster the economy amidst the coronavirus pandemic.

It's by far the largest emergency aid package in U.S. history and includes the following key features: $250 billion for direct payments to individuals and families; $250 billion in unemployment insurance benefits; $500 billion in loans for distressed companies AND, most importantly for Mill Valley businesses, $350 billion in small business loans for businesses with less than 500 employees, i.e., every business in the 94941.

Although the $350 billion comes in the form of loans, which are guaranteed by federal government, they will function as grants under certain conditions. The debt will be forgiven if the funds are used for payroll costs, mortgage interest, rent and utility payments and if businesses retain employees. 

Small Business Administration officials say a network of more than 800 lenders already approved to make SBA loans will extend the money to small business, with some choosing to hold the loans and others selling them on the secondary market.

A key component of the "Paycheck Protection Program," however, will be how quickly it can get up and running. The Small Business Administration, which is in charge of the program, distributed $28 billion in fiscal year 2019 and is in charge of the program, and now it must dramatically ramp up quickly enough to implement a $350 billion plan to rampant small business closures here and around the country.

The loans, which are guaranteed by federal government, will function as grants under certain conditions. The debt will be forgiven if the funds are used for payroll costs, mortgage interest, rent and utility payments, if businesses retain employees and all employees receive at least 75% of their prior pay. Companies can rehire employees in coming weeks without penalty. For businesses that reduce their headcount or reduce wages more than 25%, the amount of the loan forgiven will be reduced in proportion to payroll cuts, but the companies can rehire employees in coming weeks without penalty.

The small business loans will be 2.5 times monthly payroll costs, although some groups in the travel and restaurant industries had sought four times operating costs. The loans come with a rate of 4 percent or below, and the maximum loan amount is $10 million.

More details on how to apply through the "Paycheck Protection Program" will be available once the rescue package is officially passed. We'll update you as soon as we can.