April 30, 2024
Governor Tim Walz
130 State Capitol
75 Rev. Dr. Martin Luther King Jr. Blvd
St. Paul, MN 55155
Re: Request for State Relief for Business Impacted by Lack of Ice and Snow
Dear Governor Walz, Commissioner Varilek, Executive Director Bennett McGinty, and Legislative Leaders:
This past winter Minnesota saw the warmest meteorological winter on record, according to reports by the Minnesota Department of Natural Resources. The lack of snow and ice has had a significant impact on several areas of our state’s economy. We are writing to bring attention to the vital role that Minnesota's hospitality, tourism and snow removal businesses play in our economy and employment landscape, especially during the winter months. As leaders of associations in these respective communities, it is imperative the state recognizes the significant contributions these businesses make to our local and statewide prosperity.
As elected officials, we urge you to recognize and support the importance of our industries by advocating for state relief for businesses negatively impacted by the lack of snow and ice this past winter. We request at least $10 million to establish a forgivable loan program through the Department of Employment and Economic Development, as laid out in SF 5428/HF5370. Utilizing funds from the Disaster Assistance Contingency Account or other funding mechanism will give businesses some relief from the financial challenges they are currently facing. With your support we will be able to bring relief to this critical segment of Minnesota’s economy.
According to a survey completed by Explore Minnesota in March 2024, 91% of businesses surveyed were negatively impacted by the lack of snow and ice this past winter. In 2021 the tourism and hospitality industry had an economic impact of $15.7 billion and accounted for 14.2% of the total statewide sales tax collection. The economic impact of snow removal is roughly $250 million annually. Tourism and green industries have an overall economic impact of $24.2 billion dollars.
These jobs are essential for the livelihoods of many Minnesotans across our state, offering stable employment, income, and career advancement opportunities; not to mention making our state’s residents and visitors safer during our Minnesota winters. Unfortunately, stories we are hearing across the state show these businesses have taken devastating impacts, such as:
• A restaurant in Grand Marias, down 70% resulting in the owner’s personal income to be $1,700 over 3 months compared to a typical $9,000 over 3 months.
• 6 ski areas lost more than $2M in revenue this winter.
• Complete loss of snow-based activity revenue supporting resorts.
• Snowmobile rental companies down near all revenue.
• Thin ice conditions cut deeply into Minnesota’s multi-million-dollar ice fishing industry.
• Winter ice fishing destinations and associated economies across MN down significantly due to lack of ice anglers.
• Lack of ice caused the Brainerd Jaycees Ice Fishing Extravaganza to be held virtually, which normally brings 10,000 people to the area with an economic impact of more than $1 million to that community on top of more than $150,000 raised each year toward local charities.
These are just a few examples. We appreciate the Governor’s work to secure SBA EIDL disaster loans, but unfortunately these loans are not an option for all businesses. First and foremost, eligibility for the loans does not include businesses impacted by the lack of ice. In communities dependent on winter ice, the lack of ice severely impacted bait shops, resorts, gas stations, fishing guides and more. Second, some of our members already have EIDL loans from the pandemic, making it challenging to qualify based on debt ratios and ability to repay.
In conclusion, Minnesota's hospitality, tourism, retail, and landscaping industries are not only economic engines but also pillars of our community, providing jobs, recreation, and economic vitality. We urge you to prioritize their support and recognize their significance in shaping our state's future so these businesses can continue to operate, provide jobs, and fund local communities.
Thank you for your attention to this matter. We look forward to your continued support of businesses in Minnesota.
Sincerely,
Angie Whitcomb, President and CEO, Hospitality Minnesota
Tony Chesak, Executive Director, Minnesota Licensed Beverage Association
Cassie Larson, Executive Director, Minnesota Nursery & Landscape Association
Bo Bigelow, Executive Director, Minnesota Ski Areas Association
Tim Gross, Executive Director, Fueling Minnesota
Bruce Nustad, President, Minnesota Retailers Association
Bob Galligan, Director of Government and Industry Relations, Minnesota Craft Brewers Association
Dave Osbourne, President, MN-FISH
CC: Commissioner Matt Varilek, DEED
Executive Director Lauren Bennett McGinty, EMT
House Speaker Melissa Hortman
House Minority Leader Lisa Demuth
Senate Majority Leader Erin Murphy
Senate Minority Leader Mark Johnson
