Winter Park economy could take $800M hit
Winter Park’s economy is projected to take at least an $800 million revenue hit from the pandemic this year, which has caused business closures, job losses and a drop in the city’s tax income, according to a report released Wednesday.
An analysis presented to Winter Park city commissioners provided an early glimpse into the city’s battered economy using 100 surveys from businesses in the top four sectors — restaurant/retail, construction, health/education and finance. The area studied included businesses in Winter Park plus sections of bordering Orlando and Maitland.
The survey, conducted in midMay, was commissioned through a nonprofit known as THRIVE, which is a collaboration between the Winter Park Chamber of Commerce and local business leaders.
“It’s a window into the economic loss, it’s not the total economic loss,” said chamber president Betsy Gardner Eckbert, noting that all estimates are conservative and the study didn’t include every industry.
For context, the report noted Orange County’s economy is estimated to take a $27 billion hit with 391,000 jobs lost.
Winter Park, which has about 30,000 residents, had its workforce reduced by 15% with 5,428 jobs lost, costing workers $270 million in income, the report said.
But about 2,400 businesses received $265 million in loans from the federal Paycheck Protection Program, which saved more than 3,000 jobs and avoided about $400 million in revenue losses.
The city’s property tax revenue will likely be impacted during the next cycle by 11% or about a $2.6 million loss because of renovations and construction that likely won’t happen.
Valerie Seidel, president and principal economist for The Balmoral Group which conducted the survey, told commissioners that multiple factors, including the possibility of more mandated shutdowns, will affect how accurate the projections turn out to be.
“COVID is certainly an evolving scenario,” she said. “The economy could recover more quickly or the economy could recover more slowly.”
The pandemic has already significantly impacted the city’s retail and dining hubs. At least a handful of shops along Park Avenue have recently shuttered and more are in danger of closing. Local
business owners have said they are relying heavily on internet sales to make up for the decrease in foot traffic.
The city said it is aiming to help local businesses survive by collaborating with the Park Avenue District and the Chamber of Commerce to promote curbside pick up for retail orders and take out dining options. Portions of some streets are already marked off for to-go parking.
The report included suggestions for the city to consider in the future that would help stimulate the economy such as a mask wearing marketing campaign.
“I think that right now that’s probably the most valuable thing that we can consider to help our businesses,” Commissioner Todd Weaver said of the proposal. “I know there’s a significant portion of the population that just won’t go to local businesses that aren’t adhering to mask wearing policies.”