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COURIER LIFE, MAY 15-21, 2020 19
Council passes
small business
relief fund She has a name.
BY BEN VERDE
As the state’s stay-athome
measure drags on
and store owners fi nd
themselves crushed under
mounting expenses,
the New York City Council
passed a package of
legislation on May 13 with
the aim of assisting small
businesses.
The package contains
a number of measures
which aim to protect
commercial tenants
from harassment by their
landlords, and restrict
the fees that third-party
apps such as Grubhub
and Uber Eats can charge
businesses during states
of emergency.
“Small businesses are
the heart and soul of New
York City, and right now
they are hurting,” said
Council Speaker Corey
Johnson. “They need help
and this small business
package is designed to
protect them during this
pandemic.”
To combat exorbitant
fees charged by delivery
services, the council
passed two bills — one
which will cap the fees
services can charge restaurants
during states of
emergency to 15 percent,
while the other prohibits
the services from charging
restaurants for phone
calls made through their
platforms that do not result
in an order being
made.
With restaurants limited
to takeout and delivery
only during the pandemic,
these types of fees
have increasingly cut
into their already razorthin
profi t margins, restaurant
owners say.
“Delivery fees being
30 percent were killing
this business,” said Manhattan
restaurant owner
Melba Wilson, who joined
a virtual press conference
ahead of the council’s
vote. Wilson says the
15 percent cap may allow
her to bring back some of
the employees she had to
furlough in March.
A Grubhub spokesman
blasted the legislation,
claiming it would
lead to higher costs for
customers, fewer orders
for businesses, and less
pay for delivery workers.
“This is exactly the
wrong proposal,” said
John Collins. “Any cap on
fees represents an overstep
by local offi cials and
would not withstand a legal
challenge.”
Also included in the
package is legislation
that fi nes landlords who
harass any COVID-19-impacted
business between
$10,000 and $50,000 per violation.
Another bill suspends
the personal liability provision
in certain commercial
leases, which allow
landlords to hold tenants
personally liable when
they are unable to pay
rent, and can lead to the
seizure of tenants’ personal
property. The bill
allows tenants to hand in
their keys if unable to pay
rent, effectively ending
their lease.
“Don’t let me also live
with an added fear that
losing my business isn’t
suffi cient, I might also
lose my personal bank account,”
said Manhattan
restaurant owner Gabriel
Stulman. “It’s literally inhumane.”
To reduce the burden
of sidewalk cafe fees on
restaurants with existing
outdoor tables, the Council
voted to waive the costs
through the remainder of
the pandemic.
Many councilmembers,
though happy with
Wednesday’s vote, said
they hope more proactive
measures are taken in the
future, such as measures
that allow restaurants to
expand out into streets
and sidewalks to allow for
more social distancing
in collaboration with the
city’s incremental openstreets
program.
“I hope this will be
just a fi rst step,” said Park
Slope Councilman Brad
Lander. “There’s so much
more that we have to do.”
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