Faces closure within weeks unless bail out agree by York Council
It means that the Directors of the, wholly Council owned, tourist business could be forced to wind up the organisation within the next few weeks.
The Council is being asked to step in and provide a substantial financial subsidy. The proposals include plans to;
- Waive the requirement for MIY to make a revenue return to the council in 20/21 in respect of trading activity across the city centre
- Defer the first two quarters rent due from MIY in 20/21 for use of premises on Museum Street and Silver Street offices
- A loan facility from the council of £300k to be accessed by MIY only if necessary
- provide a letter of guarantee to MIY with access to a maximum of £1m over the next 2 years should it be required.
MIY normally produces a net income to the Council of around £35,000. The company is responsible for tourist information services in the City, runs the Shambles market, organises special events like the Christmas Fair (cancelled this year) and promotes the City as a business destination.
Private sector membership of the organisation has collapsed in the wake of the coronavirus pandemic with the hospitality industry being one of the hardest hit. Redundancies at MIY are expected.
The immediate hit on the Councils budget will be the loss of income from the Shambles market. This will be in the order of £474,000. That figure may grow substantially if the organisations recovery plan is not successful during the next few years.
MIY is the second tourist organisation to seek taxpayers help. The Council agreed to provide a further £55,000 subsidy for Welcome to Yorkshire at its last meeting.