HomeMy WebLinkAboutOrdinance 41781
ORDINANCE NO. 4178
AN ORDINANCE OF THE CITY OF EDMONDS,
WASHINGTON, IMPOSING A MORATORIUM ON
EVICTIONS OF SMALL BUSINESS AND NONPROFIT
TENANTS AND DECLARING AN EMERGENCY.
WHEREAS, Mayor Mike Nelson proclaimed an emergency in the City of Edmonds due to
the COVID-19 outbreak on March 5, 2020; and
WHEREAS, the facts stated in that proclamation continue to exist, as well as the following
additional facts; and
WHEREAS, the World Health Organization (WHO) has declared that COVID-19 disease
is a global pandemic, which is particularly severe in high-risk populations such as people with
underlying medical conditions and the elderly, and the WHO has raised the health emergency to
the highest level requiring dramatic interventions to disrupt the spread of this disease; and
WHEREAS, on March 16, 2020, the Governor of Washington issued an order temporarily
shutting down restaurants, bars, and other entertainment and food establishments, as well as
prohibiting public gatherings of 50 or more people; and
WHEREAS, national public health experts believe the lack of testing has masked the true
spread of COVID-19 virus, and that as of March 24, 2020 the state of Washington had 2,469
confirmed cases and 123 deaths, which could double every six days; and
WHEREAS, on March 13, 2020, the President of the United States declared a national
emergency to allow the government to marshal additional resources to combat the virus; and
WHEREAS, the COVID-19 crisis has had, and will continue to have, a significant impact
on the local economy, impacting the retail, restaurant and other industries and resulting in
economic hardship for small business owners and employees due to loss of business income,
layoffs and reduced work hours for a significant percentage of this workforce; and
WHEREAS, jurisdictions across the nation are considering or have implemented
temporary eviction-prevention measures to provide small business stabilization support during this
unprecedented public health emergency and resulting economic crisis; and
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WHEREAS, Art. XI, Sec. 11 of the Washington State Constitution grants cities such as the
City of Edmonds broad police powers to "make and enforce within its limits all such local police,
sanitary and other regulations as are not in conflict with general laws"; and
WHEREAS, a temporary moratorium on small business tenant evictions during the
COVID-19 outbreak will protect the public health, safety, and welfare by providing small
businesses with stable locations from which to operate during and after the public health
emergency, thus helping them stay in business and reduce the number of small businesses
declaring bankruptcy and closing during the economic downturn caused by the public health
emergency, and allowing the City’s economy to recover more quickly after the COVID-19 crisis
has passed; and
WHEREAS, the COVID-19 emergency requires the adoption of an ordinance that is
specifically aimed at a moratorium on small business tenant evictions during the emergency in
order to safeguard the local economy, which relies so heavily on small businesses, from economic
collapse and to protect the public safety, health and welfare; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. Moratorium on small business and nonprofit tenant evictions.
A. Effective immediately, a moratorium is hereby ordered on evictions of small
business and nonprofit tenants for non-payment of rent or due to the expiration of the lease's
term until the earlier of the termination of the emergency declared in the Proclamation of
Emergency dated March 5, 2020 or 60 days from the effective date of this Emergency
Ordinance;
B. For purposes of this moratorium, "small business" shall have the same meaning
as in RCW 19.85.020(3): '"Small business' means any business entity, including a sole
proprietorship, corporation, partnership, or other legal entity, that is owned and operated
independently from all other businesses, and that has fifty or fewer employees" per
establishment or premises;
C. For purposes of this moratorium, a "nonprofit" shall mean an entity that: (1) is a
"not for profit corporation" or "nonprofit corporation" under RCW 24.03.005(16) or is
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designated a "public benefit not for profit corporation" or "public benefit nonprofit
corporation" under RCW 24.03.490; or (2) holds tax-exempt status under 26 U.S.C. §
501(c)(3);
D. During this moratorium, an owner of property shall not enforce a contract or
statutory remedy under a lease that would remove a small business or nonprofit tenant from
its premises. These prohibited remedies include, but are not limited to, terminating the
tenant's lease or terminating the tenant's right to possession of the premises;
E. During this moratorium, an owner of property shall also endeavor to enter into a
payment plan or other agreement to assist a distressed small business or nonprofit in rent
relief, including but not limited to the deferred payment of rent, discount to rent, or other
strategies to address the economic disruption caused by the COVID-19 emergency.
Further, no small business or nonprofit tenant shall incur late fees, interest, or other charges
due to late payment of rent during the moratorium; and
F. For any pending eviction action for the non-payment of rent, it shall be a defense
to any eviction action that the eviction of the small business tenant would occur during the
moratorium. Given the public health emergency and public safety issues, a court may grant
a continuance for a future hearing date in order for the eviction action to be heard after the
end of the moratorium.
Section 2. Severability. If any section, subsection, clause, sentence, or phrase of this
ordinance should be held invalid or unconstitutional, such decision shall not affect the validity of
the remaining portions of this ordinance.
Section 3. Declaration of Emergency. The City Council hereby declares that an emergency
exists necessitating that this Ordinance take effect immediately upon passage by a majority vote
plus one of the whole membership of the Council, and that the same is not subject to a referendum
(RCW 35A.12.130). The region is in the midst of a state of emergency due to the COVID-19
virus, which has also become an economic emergency for many small business and nonprofit
tenants.
Section 4. Publication. This Ordinance shall be published by an approved summary
consisting of the title.