FRIDAY, JUNE 19, 2020 | IN THIS ISSUE
• 58-year-old IC institution, the Mill, set to close its doors
• Iowa's unemployment rate decreases to 10% in May
• State's leading indicators drop 1.7%, pointing to recession
• Report: Iowa has lost over $239M in tax revenue to date
•
Governor names new board to help jump start economy
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
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58-year-old IC institution, the Mill, set to close its doors
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After nearly 60 years in business, an Iowa City bar and restaurant has announced it is closing its doors under the current ownership and looking for a new owner.
"After 17 years of keeping the Mill going through its 58th year in business, it’s time for us to step away," owners of the 120 E. Burlington St. establishment posted on
Facebook
.
"We hope that someone else might want to take over the mission to preserve this institution. It’s a cool place and important to a lot of people in Iowa City."
The venue, "known for its pizza and spaghetti, vintage pew seating, vine-draped patio and, of course, its performance space,"
according to Little Village
,
helped give a platform to a number of local music legends, including Greg Brown and Dave Zollo. The Mill has been a performance site for the Mission Creek Festival and the Floodwater Comedy Festival and provides the stage for the Run of the Mill theater company. It has also hosted political events and served as a venue for presidential candidates to introduce themselves to Iowans.
The Mill, founded by Keith Dempster as a coffee shop branded as the Coffee Mill, has been at its current location for 48 years. It was taken over by Marty Christensen, a former bassist for Mr. Zollo, in 2003, Little Village reported.
The Mill had been closed since May 2 due to the COVID-19 pandemi
c.
IMAGE: People vent their frustration over President-elect Donald Trump at "Last Night in America" held at the Mill in Iowa City on Thursday, Jan. 19, 2017. CREDIT KCRG
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Iowa's unemployment rate decreases to 10% in May
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The state's seasonally adjusted unemployment rate decreased slightly to 10% in May, down from 11% in April.
“Given Iowa did not begin to reopen until May, it is not surprising that the unemployment rate remains at 10%," said Iowa Workforce Development (IWD) Director Beth Townsend in a release. "There are signs, however, that more people are returning to work as we see the total number of claims decline each week."
The number of unemployed Iowans declined to 168,100 in May. There were 188,000 unemployed statewide in April. Meanwhile, the total number of working Iowans fell to 1,520,000 in May, 4,600 fewer than in April and 163,900 lower than one year ago.
Overall, Iowa establishments added 15,800 jobs in May as firms began cautious reopening following social distancing measures in response to COVID-19 crisis. While May's gain is historically large, IWD officials said it is still small relative to the April drop due to quarantine efforts. Larger expansions are expected to occur in later summer months.
The May increase was the first job gain for Iowa since October and was largely fueled by leisure and hospitality. Government again showed large declines at the local education level, possibly the result of cancelled summer activities. Government shed 8,400 jobs in May while private sectors increased by 24,200 jobs.
Leisure and hospitality led the way, adding 18,200 jobs, and helping to ease some of the job loss in April due to distancing measures. Arts, entertainment, and recreation added 7,000 and accommodations and food services grew by 11,200.
Even with the large gains, these sectors still remain down 38% versus last year’s mark, although larger recovery should be seen as the summer progresses and consumers become more comfortable with new physical-distancing safety protocols at local businesses.
Manufacturing also showed some rebound in May (+2,900). All of the job gains were in nondurable goods factories (+3,300). Durable goods shops continued to show some weakness and edged down 400 jobs. Professional and business services added 1,600 jobs, fueled by administrative support and waste management industries.
Retail trade also showed some signs of recovery in May (+5,100) and fueled a gain of 1,200 jobs since April. This gain was tempered by a loss in wholesale trade and transportation and warehousing. Education and health services lost 800 jobs in May due to losses in private education (-1,500).
"Moving forward, we are looking at the numbers of initial and continuing claims to determine the shape and speed of our recovery," Ms. Townsend said, adding that Iowa's economy was strong going into the pandemic. The state's job site,
IowaWORKS
,
currently has more than 50,000 job postings.
The state’s jobless rate was 2.7 percent one year ago. The U.S. unemployment rate was 13.3% in May.
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State's leading indicators drop 1.7%, pointing to recession
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The
Iowa Leading Indicators Index for April
decreased by 1.7%, bringing the index to 101.3 for the month. The decline was the second-largest monthly decrease in the history of the index, behind March’s 3% decrease.
The six-month annualized change in the index, which is based on data tracked by the Iowa Department of Revenue, fell to -10.7% in April from -7.4% in March. This was the 18th consecutive month of negative value and the second month below a -2% change. The six-month diffusion index remained unchanged at 37.5 in April from March.
The Iowa Leading Indicators Index was constructed to signal economic turning points, with two key metrics that when seen together are considered a signal of a coming contraction: a six-month annualized change in the index below -2.0% and a six-month diffusion index below 50.0.
Contributing negatively to the index for April were seven of the eight components of the index — average weekly unemployment claims, the new orders index, average manufacturing hours, the agricultural futures profits index, the Iowa stock market index, residential building permits and national yield spread. The only positive contributor was diesel fuel consumption, which was 2.4% higher year-over-year.
Among the indicators of economic contraction were residential building permit totals, which for April were 14.2% lower than the prior-year period. The 858 permits recorded were 29% below the historical average for April. The 12-month moving average of residential permits, 974, was the 17th consecutive month that fewer than 1,000 permits were issued statewide.
A further indication that the Iowa economy will weaken through the first quarter of fiscal 2021 is the Iowa nonfarm employment coincident index, which recorded a 1.02% decline in April. It was the fifth month in a row of decline and the largest one-month decline in the history of the Iowa nonfarm employment coincident index.
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Report: Iowa has lost over $239M in tax revenue to date
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I
owa has lost a total of $239.3 million in state and local tax revenue, according to a
new report
by Oxford Economics released yesterday by the American Hotel & Lodging Association (AHLA).
The bulk of the loss - $163.6 million - comes from the gaming industry followed by lodging, with $142.7 million in lost revenue. The state has also lost nearly $6.3 million in personal income tax revenue, $4.75 million in sales tax and $2.3 million in corporate tax revenue.
The report found that nationwide, the sharp drop in travel demand due to the COVID-19 pandemic has caused a $16.8 billion drop in state and local tax revenue from hotel operations alone.
“Getting our economy back on track starts with supporting the hotel industry and helping them regain their footing,” said Chip Rogers, AHLA president and CEO in a statement. “Hotels positively impact every community across the country, creating jobs, investing in communities, and supporting billions of dollars in tax revenue that local governments use to fund education, infrastructure and so much more. However, with the impact to the travel sector nine times worse than 9/11, hotels need support to keep our doors open and retain employees as we work toward recovery. We expect it will be years before demand returns to peak 2019 levels.”
Hotels have long served as an economic engine for communities of all sizes, AHLA officials said, supporting job creation, small business opportunities and economic activity in states and localities where they operate. Hotels also generate significant tax revenue for states and local governments to fund a wide array of government services. In 2018, the hotel industry directly generated nearly $40 billion in state and local tax revenue across the country.
According to the report, hardest hit states include California (-$1.9 billion), New York (-$1.3 billion), Florida (-$1.3 billion), Nevada (-$1.1 billion) and Texas (-$940 million).
Currently, more than
70 percent
of hotel employees are laid off or furloughed. This year is projected to be the
worst year
on record for hotel occupancy, and experts estimate it will be at least 2022 before hotels return to their 2019 occupancy and revenue levels. While leisure travel is slowly starting to resume, six in 10 hotel rooms remain empty, with business travel not expected to fully rebound for two years.
Prior to the pandemic, the AHLA said hotels supported one in 25 American jobs — 8.3 million in total — and contributed $660 billion to U.S. GDP.
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Governor names new board to help jump start economy
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Gov. Kim Reynolds signed an executive order Thursday establishing the Governor’s Economic Recovery Advisory Board to help the state rebound from the economic downturn spawned by the coronavirus pandemic.
The advisory board will be led by Ben McLean, CEO of Ruan Transportation Management Systems and includes University of Iowa Hospitals and Clinics CEO
Dr. Suresh Gunasekaran among its members.
The board will focus on modernizing Iowa’s economy as well as education, health care, workforce and quality of life.
“Iowa’s success has always been about turning obstacles into opportunities,” said Ms. Reynolds in a release. “The Governor’s Economic Recovery Advisory Board assembles an impressive group of business leaders to propel our recovery efforts forward and position Iowa for growth. Iowans will be at the center of this effort as we continue to make our state the best place to live, work and raise a family."
Mr. McLean said he looked forward to getting to work "as soon as possible with the incredibly capable and talented group of leaders" who will serve on the board.
“This is about the future and taking an incredibly difficult situation and using it as an opportunity to make Iowa an even better place to live, work, and raise a family,” he said.
In addition to Mr. McLean and Mr. Gunasekaran, initial members of the board include
Nick
Bodesh, president & CEO of Elite Octane; Mary Andringa, chair of the board of Vermeer Corporation; Randy Edeker, CEO of Hy-Vee; Rosalind Fox, factory manager at John Deere; Dan Houston, chairman, president and CEO of Principal Financial Group;
AJ Loss, CEO of Bush Construction; Megan Mckay, president of Peace Tree Brewing Company; Emily Schmit, general counsel of Sukup Manufacturing Co.; Barbara Sloniker, executive vice president at the Siouxland Chamber; Adam Wright, president and CEO of MidAmerican Energy Company; and Diane Young, director of Technical Services/owner at Foundation Analytical Lab.
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Short Term Event Planner
June 22-26
Prometheus Awards Week
, by the Technology Association of Iowa, 9 a.m., online. The Prometheus Awards celebrate Iowa’s growing tech industry. Awards in 15 categories will be announced each morning throughout the week. Free. To watch, visit
bit.ly/2CbdzJG
.
June 23
Sixth-Annual Instructor Showcase
, by Kirkwood Corporate Training, 8 a.m.-noon, online. Seven subject-matter experts transitioning in their career as trainers will give a 20-minute preview of their area of expertise. Free. To register, call (319) 398-1022.
Coffee, Calm and Community
, by Iowa City Area Development Group, 10-10:15 a.m., online. These weekly Tuesday coffee meetings will be a time to reflect, share resources and connect with other business and HR leaders. Free. To join, visit
bit.ly/3fsjqsu
.
Experiment and Test Ideas with the Digital Manufacturing Lab: Powered by Alliant Energy
, by Marion Economic Development Corp., noon-1 p.m., online. Join Alliant Energy’s Nick Peterson as he shares a resource that can help strengthen businesses in the community. Free. To register, visit
bit.ly/30O4Kjq
.
June 24
1 Million Cups
, by 1MC Iowa City, 9-10 a.m., online. Join this virtual meeting for community connections, free coffee and presentations by entrepreneurs, established companies, experts and more. Free. To join, visit
zoom.us/j/818148137
.
Results-Based Listening
, by Kirkwood Corporate Training, 9 a.m., online. Learn a model for effective communication and the importance of feedback, identify the impact of your perceptions on effective listening, avoid emotional hijacking in order to enable listening effectiveness and demonstrate techniques and strategies to ensure active, effective listening. Free. To register, visit
kirkwood.edu/signup
.
Mid-Year Economic Review, by Corridor Business Journal
, 11:45 a.m.-1:15 p.m., online. Charles Evans, president and CEO of the Federal Reserve Bank of Chicago, will offer a keynote looking at the region’s economy, followed by a panel of local business leaders who will provide insight into where the economy is heading. Free. To register, visit
corridorbusiness.com/events
.
Lunch & Learn: COVID-19 and the Medical Response Across the Atlantic
, by the National Czech & Slovak Museum & Library, noon-1 p.m., online. Hear from medical experts who will compare and contrast COVID-19 responses in the United States, the Czech Republic and Slovakia. Free. To register, visit
bit.ly/2MqUp4m
.
COVID-19 Assistance for Small Businesses
, by SBA, 1 p.m., online. The SBA will give an update on the Paycheck Protection Program, the Economic Injury Disaster Loan (EIDL) program and information on additional SBA resources available to assist small businesses. Free. To join, visit
bit.ly/2N4YZ8N
.
The Impact of Current Legislation on Employee Benefits Plans
, by CLA, 1-2 p.m., online. Learn the latest updates on retirement plan changes, health plan provisions and the Paycheck Protection Program and retirement plan contributions. Free. To register, visit
bit.ly/2BarnUm
.
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These news items are provided by KCRG-TV9
The Cedar Rapids City Council announced Thursday that it would be holding a special meeting Friday to discuss and possibly draft “a statement supporting Black Lives Matter priorities.” Advocates for Social Justice, the group leading recent protests in Cedar Rapids, have called for the city to bring about
seven changes
: form an independent citizen’s review board; make significant investments in diversity, equity, and inclusion; ban choke holds, knee-to-neck maneuvers and strengthen use of force standards; decriminalize minor marijuana crimes and other low-level offenses; impose strict body camera provisions; make negotiations between law enforcement and municipal representatives public; and abolish qualified immunity.
Ahead of Friday’s meeting, the Advocates for Social Justice picked up a major endorsement for their goals from the Cedar Rapids Civil Rights Commission, which voted Wednesday to send letters of support to the city council, Mayor Brad Hart, and Police Chief Wayne Jerman. “This is a moment in time when the world is watching. The world sees the injustice. The world sees the racism at its core,” incoming Commission Chair Anthony Arrington said. Read the full story
here
.
With COVID-19 cases rising in several states, a handful of them are
now requiring people to wear face masks
to slow down the spread. While Iowa as a whole is continuing a downward trend in daily cases, certain counties are not. Yesterday, Gov. Kim Reynolds was asked if she would support giving cities and counties the ability to mandate mask-wearing. She indicated she'd rather leave that up to Iowans themselves. She says they, along with businesses, are doing the right thing. “We’re going to deal with data we have in Iowa,” Reynolds said. “We’re going to base our recommendations on what we’re seeing happening on the ground. And so Iowans need to decide that. The more information that we give them, they can make the decision to wear a mask or not.” Medical experts continue to say wearing masks or face shields is key to help avoid spreading COVID-19.
These news items are provided by KCRG-TV9
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Your KCRG-TV9 First Alert Forecast
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Storms are returning to Eastern Iowa on schedule and on a scattered basis. The next few days will not be washouts by any means, but there will be scattered storms affecting portions of the area at times. The general theme of this particular pattern seems to be an active start to the day, then a big break, then another flareup in the afternoon to early evening. This looks to be the case tomorrow as well. It’s feasible some areas will receive over one inch of rain by the time we get this front out of here later Saturday night. Given dry conditions leading up to this, the ground will welcome the rain and no flooding issues are expected. Plan on a wonderful Father’s Day with highs into the lower 80s.
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