Monterey passes commercial rent deferral, to consider “city stimulus plan”

MONTEREY, Calif. (KION)

The City of Monterey is in the early stages of a "city stimulus plan," brought up at Tuesday night's City Council meeting.

More details on the plan are expected at the April 21st meeting, but at this point it would involve a "rent payment assistance program" for workers and financial assistance for local businesses impacted by the coronavirus pandemic.

City Manager Hans Uslar called the idea a "reinvestment into our city." To fund the plan, the city would potentially look at not just their own resources, but regional agencies, non-profits and the private sector.

What did pass in a unanimous 5-0 vote Tuesday night is the plan to defer rent for commercial tenants leasing space from the city.

In a report ahead of Tuesday's meeting, the city says their Property Management division manages more than 80 leases, with a majority being for small, family-owned businesses.

This plan allows the businesses to skip payments in April and May 2020, pay their normal rent in June and July, and pay the normal rent plus the deferred rent in August, September, October and November.

All of the deferred rent will have to be paid by November, however, this timeline could extend if the "shelter in place" order is prolonged.

This is a developing story.