Continued impact of COVID-19 on Minot’s economy
MINOT, N.D. – Covid-19 left a deep economic impact on Minot’s economy.
Last week, Minot city leaders spoke briefly about the impact on sales tax due to both the drop in oil prices and the coronavirus.
They estimated a budget of $8.5 million per penny.
“Last year our budget was $10 million and we collected about $11.4, so that’s about a 25-percent decrease,” said acting City Manager and Minot Financial Director David Lakefield.
Last month the city said they anticipated the total revenue reduction impact could be roughly $10 million.
John McMartin, Director of the Minot area chamber of Commerce, said the pandemic has had varying effects on businesses as well.
“There certainly some businesses whose economic situation has been drastically impacted; there are other businesses that probably came through this relatively unscathed,” said McMartin.
McMartin said for businesses that work with large groups like caterers, djs and event spaces, this time has done significant damage.
“All that business went away and it’s not business that they are going to get back,” said McMartin.
McMartin said the drop in oil prices did not help some businesses already struggling due to the pandemic.
“There have been wells that have been shut in because the price that they’re getting for the oil is too low to actually pay for the production cost,” said McMartin.
With the federal stimulus funding drying up, McMartin said businesses should look to restructuring their business model and speaking to their financial institution if they are struggling.
The North Dakota State Fair and Norsk Hostfest, both canceled due to COVID-19 concerns, have a combined economic impact on the area of roughly $90 million.