R357-13-8. Procedures for the Administration of the Hotel Impact Mitigation Fund

  (1) There is created an expendable special revenue fund known as the Hotel Impact Mitigation Fund.

  (2) An affected hotel may apply for mitigation by Filing an Application in a form prescribed by the Office.

  (a) Applications for mitigation will be accepted during an "open application" period, with opening and closing dates specified by the Office. Notification of the open application period will be posted on the GOED website.

  (b) An applicant who fails to apply for mitigation during the open application period will not be eligible for mitigation funds during that fiscal year.

  (c) Applications will be accepted for four consecutive years per Utah Code Section 63N-2-512(5)(a)(ii). An applicant must submit a new application each year, and the application must reflect the direct loss for the preceding calendar year only. Any additional losses reported beyond the preceding calendar year's losses shall be discounted.

  (3) Eligibility: In order to be determined eligible for reimbursement from the Hotel Impact Mitigation Fund, an applicant shall demonstrate:

  (a) That the applicant is a hotel built in the state before July 1, 2014;

  (b) That the hotel has experienced a direct loss as defined in Utah Code Section 63N-2-512(1)(b).

  (c) Evidence of Direct Loss must clearly establish the link between the qualified hotel and the applicant's loss. In order to show Direct Loss, the Applicant shall:

  (i) Provide the applicant's baseline occupancy rates for the prior 3 years, by year;

  (ii) Provide audited financial reports for the prior 3 years, by year.

  (iii) Provide Tax Return data showing that the Applicant has reported a financial loss;

  (iv) Provide audited statement showing the link between the qualified hotel and the applicant's direct loss, showing that the qualified hotel, and not any other factor, is responsible for the direct loss.

  (v) Apply during the open application period as set forth in subsection (2).

  (3) In accordance with office rules, the board shall annually pay up to $2,100,000 of money in the mitigation fund:

  (a) to affected hotels, on a pro rata basis, based on amount of direct loss claimed and verified by the Office;

  (b) and based on the unencumbered money available in the Hotel Impact Mitigation Fund for the fiscal year in which the applications are processed.

  (4) The board shall make any required payment within 90 days of the end of the application period, unless an applicant seeks agency review or good cause exists to extend the time.

  (5) If an application for reimbursement by the Hotel Impact Mitigation Fund is denied, the entity may seek review by the Executive Director of the Governor's Office of Economic Development, using the procedures set forth in the Utah Administrative Procedures Act, Utah Code Section 63G-4-301.

  (a) Review must be filed within 5 business days of notice by the Office that the Application is denied.