CALL TO ACTION: Cedar Rapids City Council Meeting Tomorrow Night at 5:30 pm
We need business owners to come out in force at this week's City Council mtg. It is on Wednesday, June 24th at 5:30 PM in the AEGON USA Auditorium, 4333 Edgewood Rd. NE, West side of the main building.
THIS IS VITAL BECAUSE:
As many of you know, of the latest allocation of $517 million of CDBG funding that is coming to Iowa, only $25 million has been allocated for businesses statewide. And, in you can believe this, that is less than the $26 million allocated for administrative costs to hand out the money!!! This shows a lack of interest by the State and the City in saving jobs for our community.
The Chamber and the CR Small Business Recovery Group was told in a teleconference yesterday with the State that they cannot give us money when the City of Cedar Rapids doesn't request that businesses need money and 79% of the businesses are back. Of course, the City says this is not true and we have the classic "he said, she said" story. Our voice needs to be loud and clear this week as we only have until Friday to submit our views to the State via the City.
With all of that in mind, if we don't voice the fact that we need help, we won't get any! That is why we need you there early (5PM) and we need to fill the Auditorium and make it clear to the City that we need help. We also need as many of you as possible to contact City Council members urging them to amend their request of CDBG funding allocations to the State, shifting a more fair percentage of recovery dollars to the business community. We also need you to share your personal business story and demonstrate why we need business aid.
Please consider these types of information to relay for those of you willing to speak during the public comment portion of the mtg. at 5:30PM:
Business Overview (brief)
- Your loss in dollars
- Jobs before flood
- Have you reopened or not and when and in what capacity
- Jobs after flood
- What you need for survival
THIS IS A SIGNIFICANT OPPORTUNITY TO MAKE A DIFFERENCE IN PROGRAMMING THAT COULD MEAN MILLIONS OF DOLLARS COMING TO THE BUSINESS COMMUNITY OR NOT. THE CITY HAS THE ABILITY TO REQUEST A SHIFT IN THE ALLOCATION OF FUNDING AND WE MUST PUT PRESSURE ON THEM TO DO SO. THE CITY COUNCIL, CITY MANAGER AND STAFF NEEDS TO REALIZE THAT WITHOUT AID TO BUSINESSES THEY WILL NOT HAVE A COMMUNITY, A TAX BASE OR A VITAL SMALL BUSINESS
COMMUNITY.
If, as a business owner, you could use some aid for your recovery, you need to be there Wednesday night, you need to change your schedule if you have a conflict, that is how important Wednesday night is. WITHOUT SHOWING A NEED, THERE WILL BE NO AID.
Please read the points listed below for more background information and please, please be there Wednesday night. It is up to us to save jobs for this community over the next two years!
YOUR individual story should include why one or more of the points below MUST be addressed.
I wanted to give a little recap of information regarding the latest allocation of $517 million of CDBG funding that is coming to the State of Iowa.
- Only $25 million has been allocated for businesses, statewide compare this to the administrative costs, which are allocated at $26 million
POINT #1 In the total $800 million in CDBG money that has come from the federal government, the business community has only been allocated 8.525% of the dollars on a statewide level. Yet the business community in Cedar Rapids has sustained 30% of overall damage in direct loss, and 44% loss when economic impact is added. In the very least, we should be advocating and receiving 30% of all funds coming into the community for aid.
- There is no program for funding businesses in a disaster, but that excuse isn't good enough...we need to find a way to fund them
POINT #2 This is not a business versus housing issue....it is a balance issue. We need to have balance in order for the community to rebuild. We cannot invest $175 million plus to housing and expect the business community to be able to wait or come up with its own funding
- LESS THAN 20% of the affected businesses had any kind of insurance, and none of the businesses received FEMA
- Without significant aid to the business community, we will be on track to lose over 300 businesses in the first two years
- This loss signifies 7000+ jobs....employees that reside in all of these new homes
- Thousands of dollars in retirement plans, medical and other benefits will also be lost as businesses close their doors
- There will be a significant gap in the tax base of the business community without these businesses
POINT #3 Businesses cannot wait....housing is important and should be funded but some portion of every dollar that comes to this community in aid should be dedicated towards rebuilding the business sector as well...even if it is only 10-15%.
POINT #4 8 Programs were provided to IDED for consideration. One was selected, which will help less than 250 of the 700 businesses impacted by the flood.
POINT #5 Yes, some businesses have opened, unfortunately, no one asked what open meant in that survey.
- We are employing fewer people
- Our debt service is huge, and the business community cannot remain viable with that debt service.
- We are now seeing businesses NOT affected by the flood in extreme financial difficulty due to outstanding balances owed by flood affected businesses for services performed.
We need to stay open to keep our residents working. Or housing won't matter if 7000 less people are employed to live in them - many of these employees lived in flood affected homes. - They are unlikely to survive in a new residence, with new debt, and without a job.
Thank you for your attention to this vital mission, if we don't fight for ourselves, we cannot blame anyone but ourselves when businesses begin to close their doors due to debt on top of debt.
See you Wednesday night!!
Gary Ficken (from the Small Business Recovery Group in Cedar Rapids)
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