A California Christmas town refuses to enforce the state's shutdown order because businesses depend on winter tourism, officials say

Patrons at the popular Paula's Pancake House on Hwy 246 enjoy new outside seating arrangements on October 10, 2020, in Solvang, California.

George Rose/Getty Images

• City officials in Solvang, a California tourist destination named one of America's "best Christmas towns," voted not to enforce the state's shutdown order. 
• California ordered the Bay Area, Southern California, and parts of Central Valley to shut down most businesses due to high hospitalization.
• "For Solvang and its business community, this action is nothing short of disastrous," Ryan Toussaint, the former mayor of Solvang, said in a release.
• Small businesses have not received federal COVID relief since the Paycheck Protection Program, which ended in August.
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A tourist destination in California voted not to enforce the state's shut down order, an action that could result in its businesses being fined and funding to be cut off.

Solvang, a Danish enclave near Santa Barbara, held an emergency city council meeting on December 7 and voted not to enforce the state's shutdown orders. 

California ordered the Bay Area, Southern California, and parts of Central Valley to shut down due to high hospitalization. The number of COVID-19 patients in intensive care has risen by about 1,000 since December 1, according to state data. There are 1,424 total ICU beds available in the state as of December 14.

The shutdown, which began on December 6, requires Californians to stay indoors and only leave their homes for essentials while wearing a mask. The state closed indoor dining, gyms, and movie theaters, among other businesses, in 41 counties.

"For Solvang and its business community, this action is nothing short of disastrous," Ryan Toussaint, the former mayor of Solvang, said in a release. "In addition to failing to consider the impacts on the business community at large, the State has also failed to consider the fact that no matter what the Governor may proclaim, people have already made plans and reservations and will most likely be showing up in Solvang during the Christmas season."

Solvang, named one of the county's "best Christmas towns" by multiple outlets, hosts annual holiday-themed events between November 28 to January 1. Events include taking free photos with Santa Claus and candlelight tours. 

Read more: New York's iconic Katz's Deli survived 132 years of crises, including a pandemic that's decimating the restaurant industry. Here's the long-term plan they used that every entrepreneur can emulate.

Solvang city officials said in a recent meeting the state can issue small businesses a citation of $5,000 and revoke licenses for up to a year. The city could lose state funding for not complying with the shutdown order, but officials said Solvang has not received direct aid from California yet.

Small businesses have not received federal COVID relief since the Paycheck Protection Program, which ended in August. The Treasury Department recently said over half of PPP funds went to just 5% of recipients. One in five small businesses closed between February and April, per research from the National Bureau of Economic Research, and experts say more will close in the winter without relief.  

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