VERMONT FLOOD IMPACTS ON OUTDOOR BUSINESSES

REPORT - AUGUST 7, 2023

The Severe Storm that began on July 10 had a significant impact on Vermont’s outdoor sector, affecting outdoor businesses and the recreation assets they depend on across the state. The Vermont Outdoor Business Alliance (VOBA) conducted outreach to outdoor businesses (that provide goods and services linked to outdoor recreation) through a 7/24 webinar in partnership with Vermont Businesses for Social Responsibility; 1:1 interviews with outdoor businesses; and a survey sent to 500 businesses that was open from July 28 to August 4.

VOBA is helping outdoor business members navigate flood resources and advocate solutions to policymakers and relief entities on their behalf. We offer these recommendations from the outdoor sector to identify gaps in assistance already offered to date.

RECOMMENDATIONS

  1. Establish an outdoor business financial assistance program specific to economic injury offering grants (or forgivable/subsidized loans) to cover revenue losses incurred by non-physical flood-related factors (including but not limited to slowed tourism, canceled reservations, services and programs, closed recreation and roads, compromised retail and rental operations.)

  2. Launch fall visitation and holiday buy local campaigns specific to outdoor recreation to drive sales to open VT businesses, online shopping, outdoor markets, & seasonal expos.

  3. Advocate for public infrastructure funding for repairs, environmental clean up, and mitigation investments in trail, water, and recreation assets that are priorities for businesses dependent on them (ie. Lamoille Valley Rail Trail, paddlesport waterways).

SURVEY FINDINGS

  • 48 businesses and nonprofit organizations participated in the survey.

  • 70% of respondents had not reported damage data to Vermont 211.

  • 21 respondents were retailers, 21 from resorts, recreation facilities, trail networks, tour operators, event businesses, and lodging, 6 from outdoor, travel, and tourism services.

  • Counties of impacted businesses: Addison, Bennington, Caledonia, Chittenden, Franklin, Lamoille, Rutland, Orange, Orleans, Washington, Windham, Windsor

  • Communities of impacted businesses: Barre City, Brattleboro, Burlington, Cambridge, Craftsbury Common, East Burke, Jeffersonville, Johnson, Grafton, Killington, Londonderry, Ludlow, Manchester, Montpelier, Poultney, Rawsonville, Richmond, Rochester, Rutland, Salisbury, St Albans, Stowe, Thetford, Waterbury, Woodstock (South Pomfret) 

  • Financial impacts:

    • 72% reported lost revenue due to external circumstances such as inaccessible roads, closed recreation and slowed tourism

    • 44% reported lost revenue due to canceled reservations and services

    • 37% reported lost revenue due to forced closure of retail and rentals, 37% reported labor costs from clean up and recovery

    • 33% reported lost revenue from physical damage, 16% from damaged inventory 

  • Estimated total losses: $5 - 6 million

  • Financial needs by outdoor businesses:

    • Grant (77%) or low interest loan (24%) for economic injury 

    • Grant (47%) or low interest loan (9%) for physical damage

    • Grant (20%) for climate mitigation investments 

  • Financial assistance pursued by outdoor businesses:

    • 47% Business Emergency Gap Assistance

    • 40% Main Street Flood Recovery Fund

    • 30% SBA Disaster Loan Program and Insurance

    • 20% and Vermont Flood Response and Recovery Fund

  • Vermont Small Business Development Center was the only source of business counseling sought

  • Ideas to support recovery:

    • (77%) Repair and reopen recreation waterways, rail and forest trails, access points, and parks and (71%) reopen roads for travel and activities like bicycling, walking, etc. Additionally, official water quality data and reopening the Lamoille Valley Rail trail are priorities 

    • (65%) Media communications/marketing tools on recovery progress/status of open & reopening

    • (53%) Publishing ads for shops, directories of open businesses, (53%) launching buy local promotion initiatives 

OVERALL CONCERNS AND NEEDS

Financial and employee assistance

  • Small businesses are unable to take on debt thus need grant programs.

  • Financial assistance needed for losses due to economic injury (non-physical damage.)

  • Climate mitigation resources needed to invest in structural renovations, equipment, infrastructure, and relocation to protect against future flood impacts.

  • Legislative extension needed to protect employers from unemployment insurance costs.

Recreation assets as business assets

  • The immediate repair, clean up, and reopening of priority recreation assets that businesses depend on to sell products and operate services during the summer season (i.e. Lamoille Valley Rail Trail, waterways for swimming, fishing, boating

Marketing and communications

  • Heightened state visitation messaging to dispel misperceptions about the state: 1) directing visitors to areas that are open; 2) encouraging check-ins with destinations on status and keeping plans as a way to support Vermont; and 3) supporting all Vermont outdoor businesses online by purchasing gift cards, products, services, reservations, and making donations. 

  • Promotion to the public of tools and sources of trusted information on the status of outdoor recreation activities with messaging on recreating responsibly. 

OUTDOOR BUSINESS FLOOD IMPACT SCENARIOS

Revenue losses

  • Retail revenues in affected areas ranged as high as 60% during the flood week and are anticipated to average 30% - 40% for the month, with lower than normal revenue for the remainder of the summer season.

    • Factors: Closures for clean up and repairs; Damaged rec assets and compromised waterways; canceled plans by tourists; slowed rentals, tour volume, and travel more difficult to trailheads or places of business; community donations prioritized over recreation purchases.

Physical and operations

  • Costs incurred to repair or replace structural, electronical, and cosmetic elements of buildings and property. 

  • Costs incurred from damaged inventory, furniture, and fixtures.

  • Challenge in finding and affording engineering services for assessments, architects for historic buildings, additional funds to rebuild in an environmentally resilient/energy efficient manner.

  • Flood insurance has been cost-prohibitive for businesses. The Town of Killington is one of only two towns in the state to not participate in the national flood plan so businesses ineligible for flood insurance.

Employees

  • Employees paid for overtime or time to manage emergency, clean up, repair damage.

  • Employees laid off due to canceled reservations, canceled tours/ programs/events; concerns exist about re-hiring staff.

  • Mental health supports utilized for employees and business owners.

Equipment

  • Costs incurred from equipment purchases and replacements such as trailers, tractors, sandbags, sump pumps, generators, clean up equipment, and supplies.

  • Costs incurred from purchasing flood mitigation equipment (water pumps, powerwalls, generators) and renovations to buildings, property, and roads to protect against future impacts. 

  • Costs incurred from relocation services, legal services (leases, contracts) and upfit costs to move from flood prone areas.

Relief processes

  • Inequities exist in BIPOC, women, New America and other business owners accessing financial and technical assistance due to barriers to information (interpretative services) or receiving help to process applications.

  • Abundance of first responder economic assistance organizations (VtSBDC, RDC, CWE, VTPOC) to help navigate assistance but a gap in 1:1 capacity to help with processing paperwork.