Dear WH&LA Lodging Member:
There are two issues that we are hoping to see movement on at the federal level (pursued by the AH&LA, but deemed long shots) that we now need to have a stronger push for at the state level in order to protect lodging properties in both the short term and long term. The WH&LA has already contacted the Governor’s Office on both, however with so many groups asking for help at this time, we need reinforcements through a large number of emails, to demonstrate the need for changes. Please take a few minutes to send an email as noted below for one or both issues that matter to you.
ISSUE #1: PROTECTION AGAINST LIABILITY FROM COVID-19 LITIGATION
Numerous sources are already advising that Trial Lawyers are preparing for attracting a large number of clients who have come down with the COVID-19 virus to sue hotels or other Essential Businesses for catching the virus as a guest or employee at their property. The opportunity and likelihood of such targeting is already a concern for many lodging businesses of all sizes.
Please contact Governor Tony Evers at
govinfo@wisconsin.gov
, along with your state Senator and state Assembly Representative
(
go to
http://legis.wisconsin.gov
/
and enter your home address under “ Who are my Legislators” part way down on the right)
and state the following or something similar:
Dear
(
customize to Governor Evers, State Senator __ and State Assembly Representative
__
)
:
Wisconsin’s lodging industry has been decimated by the COVID-19 pandemic, with many properties like ours barely surviving with little or no revenue coming in to offset our expenses. We have been hearing that Trial Lawyers are already planning to file frivolous lawsuits against businesses deemed Essential Businesses during the crisis relating to the transmission of the virus, which is commonly known to be potentially transmitted through contact almost anywhere. Defending against frivolous lawsuits such as these would put us out of business along with many others.
Please proactively help now, through an Executive Order or through state legislation to prevent such unnecessary and unwarranted litigation in Wisconsin before many already struggling businesses become forced into closure from such actions.
Respectfully
,
(Important: List your name, property, and location in order to be counted)
ISSUE #2: CMBS LOAN FORBEARANCE
While this does not impact a majority of properties, for those it does impact, the consequences are considerable. If your property has a Commercial Mortgage-Based Security(CMBS) Loan, it is much more difficult to request and negotiate any delay in your payments due to the multi-layered complexity of these loans. It is estimated that approximately 80% of businesses needing an extension on payments for their mortgage through a relationship banker will be able to get one, however only 15% of those with CMBS loans are able to get any “forbearance”. This has serious implications if you are unable to meet your payments on time.
Please contact Governor Tony Evers at
govinfo@wisconsin.gov
and state the following or something similar:
Dear Governor Evers:
Our lodging property has a Commercial Mortgage-Based Security (CMBS) Loan with payment deadlines that we cannot meet on time due to the decimation of the COVID-19 pandemic on our business. CMBS Loans are structured such that it is excessively difficult to even request much less to obtain forbearance on loan payments, even for a crisis like our business is experiencing. Nationally, while 80% or more of relationship banker mortgage lenders are arranging for payment delays, only 15% of CMBS Loan servicers are allowing for any delays, meaning businesses like ours are facing severe and unnecessary penalties that could force businesses into foreclosure very soon.
Please pursue issuing an Executive Order requiring forbearance on mortgage loans , including CMBS Loans, due to the economic devastation caused by the COVID-19 pandemic to allow businesses like ours to get back to our usual timely payments when revenue returns to our business, and avoid steep penalties or foreclosure. The Governors of the states of Ohio and North Carolina have already issued such orders, and we respectfully ask you to resolve this in Wisconsin as well.
Respectfully,
(Important: List your name, property, and location in order to be counted)
If these issues are important to you, your voice is needed now in order to demonstrate this importance to state leaders. Thank you for your interest and support.
Stay well,
Trisha
