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Authorizing the Use of State and Local Fiscal Recovery Funds to Fund Kane County Tourism Recovery and Promotion for a Sustainable Future Fund for the Kane County Development and Community Services Department
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WHEREAS, the Congress of the United States has enacted the American Rescue Plan Act of 2021 (“ARPA”) to provide economic relief to State, Local, and Tribal governments responding to economic and public health impacts of the COVID-19 pandemic; and
WHEREAS, the County of Kane has received a total of $103,413,041 (One Hundred Three Million, Four Hundred Thirteen Thousand, Forty-One Dollars) from the United States Department of the Treasury, in State and Local Fiscal Recovery Funds (“SLFRF”) pursuant to ARPA, and
WHEREAS, pursuant to ARPA and the administrative regulations adopted by the United States Department of the Treasury (“Final Rule”), the County of Kane shall use SLFRF to defray costs associated with its response to the COVID-19 pandemic within the County, to address the economic fallout from the pandemic, and lay the foundation for a strong and equitable recovery; and
WHEREAS, by Resolution 21-313, the Kane County Board has established the American Rescue Plan Committee (“ARPC”) as a resource for research, education, planning, and recommendations for the best allocation and uses of the County’s SLFRF; and
WHEREAS, by Resolution 21-156, the Kane County Board approved the recommended Spending Plan as proposed by the ARPC, which designates $42,000,000 (Forty-Two Million Dollars) to be used for Kane County Department and Elected Office project requests; and
WHEREAS, the Kane County Development and Community Services Department has made a request in the amount of $1,588,000 (One Million Five Hundred and Eighty-Eight Thousand Dollars) of SLFRF to fund Kane County Tourism Recovery and Promotion for a Sustainable Future Fund for the purpose of responding to the COVID-19 public emergency or its negative economic impacts; and
WHEREAS, Covid-19’s impact on the hospitality and tourism industry has been devastating and unprecedented. The impact is estimated to be about nine times of that from 9/11. Many of our properties were unable to host group meetings, tournaments, and events. Restaurants were also affected by the closing of indoor dining, stay-at-home orders, and strict capacity limits. These mitigations forced the restaurant industry to pivot, when they could, to takeout and delivery. Though assisted with Federal Relief Programs to pay employees not laid off and other rent and operational grants and loans, the future of the once robust hospitality industry that employed 1 in every 10 workers in Illinois is in peril. The hospitality industry took the brunt of the damage as a business sector and needs targeted long-term support to rebuild and regain its place as an economic powerhouse. For Kane County the average change was a decrease of 40% in hotel occupancy with a peak of 63.5% in the early months of COVID, as reported by Smith Travel Research. The Power of Travel is essential for economic recovery in Kane County. The hospitality and travel industry has been ravaged by the Covid-19 Pandemic. Prior to the pandemic year of 2020, visitor spending in Kane County topped $532.78 million in 2019. In 2020, visitor spending and tax revenues statewide were down 49%. Regaining our position in the highly competitive tourism market is paramount. The result will be a lower tax burden to Kane County residents; and
WHEREAS, the Development and Community Services Department seeks to partner with the Elgin Area Convention & Visitors Bureau and the Aurora Area Convention & Visitors Bureau to administer this project; and
WHEREAS, the Aurora Area Convention & Visitors Bureau (AACVB) is a private, nonprofit organization dedicated to marketing and promoting the region as a premier overnight destination. The goal of the AACVB is to enhance the economic and environmental well-being of its communities; and
WHEREAS, the Elgin Area Convention & Visitors Bureau’s mission is to collaboratively advocate for the thoughtful development and promotion of the region to stimulate the economy through tourism and create a sense of place for residents; and
WHEREAS, to assist the County in determining whether the project is an eligible use of SLFRF under ARPA, the Final Rule, and the related guidance issued by the United States Department of the Treasury, the ARPC consultant, Ernst and Young, has reviewed the Kane County Development and Community Services Department’s request for SLFRF for Kane County Tourism Recovery and Promotion for a Sustainable Future Fund for the purpose of responding to the COVID-19 public emergency or its negative economic impacts and completed an assessment regarding the project’s eligibility under the U. S. Department of Treasury rules and regulations Section EC-2: Negative Economic Impacts, EC Subcategory 2.35 (see Exhibit A); and
WHEREAS, the ARPC recommends that the Kane County Board authorizes the use SLFRF in the amount of $1,588,000 (One Million Five Hundred and Eighty-Eight Thousand Dollars) to fund the Kane County Tourism Recovery and Promotion for a Sustainable Future Fund for the Kane County Development and Community Services Department, to be spent during the ARPA period of performance and in accordance with the ARPA, the Final Rule and related guidance issued by the United States Department of the Treasury, and any other Federal, State or local laws and regulations.
NOW, THEREFORE, BE IT RESOLVED that the Kane County Board that the Kane County Board hereby authorizes the Kane County Development and Community Services Department use of State and Local Fiscal Recovery Funds in the amount of $1,588,000 (One Million Five Hundred and Eighty-Eight Thousand Dollars) to be used for Kane County Tourism Recovery and Promotion for a Sustainable Future Fund , in accordance with the American Rescue Plan Act of 2021, the Final Rule, and related guidance issued by the United States Department of the Treasury, and any other Federal, State or local laws and regulations.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Kane County Board that the Kane County Board Chairman is authorized to execute separate grant agreements with (1) Elgin Area Convention & Visitors Bureau in the amount of $794,000 (Seven Hundred and Ninety-Four Thousand Dollars) of SLFRF and (2) Aurora Area Convention & Visitors Bureau in the amount of $794,000 (Seven Hundred and Ninety-Four Thousand Dollars) of SLFRF, based on the proposals attached as Exhibit B, to be distributed in accordance with the terms established pursuant to the respective grant agreements attached as Exhibit C, with final form of each respective grant agreement subject to approval by the State’s Attorney’s Office. The general ledger account for the Fiscal Year 2024 budget will be 355.800.668.85000 Allowance for Budget Expense.
Elgin
Elgin Area Convention & Visitors Bureau
Total funds requested $794,000 to be distributed over a three year period as outlined below:
FY 2024 Total $264,666: Digital Ads $154,666; Print Ads $80,000; Datayfy $30,000
FY 2025 Total $264,667: Digital Ads $154,667; Print Ads $80,000; Datayfy $30,000
FY 2026 Total $264,667: Digital Ads $154,667; Print Ads $80,000; Datayfy $30,000
Aurora
Aurora Area Convention & Visitors Bureau
Total funds requested $794,000 to be distributed over a three-year period as outlined below:
FY 2024 Total $264,666: Digital Ads $162,933; Print Ads $85,000; Datafy $16,733
FY 2025 Total $264,667: Digital Ads $162,934; Print Ads $85,000; Datafy $16,733
FY 2026 Total $264,667: Digital Ads $162,934; Print Ads $85,000; Datafy $16,733
Passed by the Kane County Board on October 10, 2023.
_________________________ _________________________
John A. Cunningham, MBA, J.D. Corinne M. Pierog MA, MBA
Clerk, County Board Chairman, County Board
Kane County, Illinois Kane County, Illinois
Vote: