Vail commercial rental relief program now accepting applications online
The Town of Vail on Tuesday put out the following press release on its commercial rent relief program, which is now accepting applications online:
The Town of Vail is pleased to announce that businesses are now eligible to apply online for the commercial rent relief program. The program was developed by representatives from the Vail Economic Advisory Council with assistance from the Economic Development Department and supported by $1 million from the Vail Town Council The program is designed to help support and sustain local businesses as part of the town’s multiple recovery efforts in response to the public health crisis.
As long as businesses have support from their landlord to apply for the program, they are encouraged to apply for commercial rent relief. While specific requirements are set out for businesses to meet, the town acknowledges that each business is different and it looks to this program to support its business community.
What is the Town of Vail Commercial Rent Relief program?
The Town of Vail Commercial rent relief program strives to support and sustain local businesses by offering a rent relief grant for up to four months (Aug 2020 – November 2020) not to exceed a maximum award of $15,000 per business. Businesses are eligible to be awarded relief funding based on a percentage of their monthly rent plus CAM. The percentage is calculated based on the total monthly revenue shortfall as compared to the same month in the prior year, which then is applied to the monthly rent plus CAM as verified by the landlord. This amount will be split equally between the landlord and the Town of Vail.
Commercial Rent Relief Resolution No. 35, Series 2020
Rent Relief Calculation Example
A business pays $10,000 a month in rent and CAM charges. In August 2019 that businesses had gross revenues totaling $100,000. In August 2020 gross revenues totaled $60,000, a decrease of $40,000 or 40% from prior year due to COVID 19. The business would be eligible for a total shared rent abatement of $4,000 (40% shortfall in revenues X $10,000 monthly rent and CAM). The $4,000 is shared equally between the town ($2,000) and the landlord ($2,000).
Who is eligible for this program?
To qualify, a business must meet the below requirements:
- Business was open in Vail on March 1, 2020 and was in business for the 2019-20 winter season. (Startup businesses in more recent months will be considered on a case-by-case-basis)
- Business is open and will be open at least six days a week between Aug.1 and Nov. 30, 2020, with the exception of the month of October where business will be open at least five days per week, barring any public health orders that would preclude this. Businesses should typically be open at least 44 weeks per calendar year.
- Business employs 50 or fewer full time equivalent (FTE) employees.
- Business has a physical storefront location in the Town of Vail, holds a valid Vail business license, pays rent to a landlord and is current on all payment owed to the Town. Businesses with outstanding deferred sales tax beyond that date will be ineligible for rental relief until payment is made.
- Business must have a rent payment due to a landlord for the time period of Aug. 1, 2020 – Nov. 30, 2020. The business may not have any ownership interest in the property being leased.
- Business must pay monthly sales tax to the Town of Vail. Businesses that are service oriented and traditionally office in nature, such as accounting, law firms, property management, real estate, etc. do not qualify.
- Businesses with outlets outside Colorado are not eligible to apply, except for those businesses with a primary owner whose primary residence is in Eagle County.
- Landlord must participate in the program for business to be eligible. Town agrees to match the landlord abatement by month up to the maximum of $15,000 per business within the confines of this program.
How to Apply
- Business will apply to participate in the program via the “Eligibility Application.” Required documentation includes:
- Current lease and Common Area Maintenance (CAM) charges
- Colorado Secretary of State confirmation of certificate of good standing
- Landlord W9
- Each month, from September through December, businesses will complete a form and upload an affidavit from their landlord which includes a signature from their landlord verifying their participation in the program and validating their reduction in revenue versus the same month last year. The form is due by the fifth business day of the month. Monthly online forms are linked above as they become available.
- Landlord will abate rent plus CAM for each month by 50% of the % of shortfall in revenue, and Town will abate and pay to landlord an amount equal to the landlord abatement by month.
- All applications will be subject to audit by the Town of Vail Finance Department.
Who will make the payments?
The Town of Vail will make rent payments directly to the landlords on behalf of the tenant in arrears. The town will make every effort to pay the landlord match within ten days of the receipt of the application and rent reduction documentation from landlord.
For more information, contact Mia Vlaar, economic development director, at 970-479-2454 or email firstname.lastname@example.org.