GOGEBIC COUNTY, Mich. (WZMQ) – The Lake Gogebic Chamber of Commerce sent out a relief appeal to the State of Michigan, asking for any emergency funds to support the revenue loss the businesses faced during the past two months.
AJ’s Lodge and Oven owned by Mary DeFazio is just one of the many businesses born in the Bergland area. “There’s about 7 or 8 resorts on the lake themselves so people can come out and go to the different resorts,” said DeFazio.
Mary and her husband Jim purchased the lodge in 2012, and after renovating one of the buildings into a full restaurant, the doors opened in 2020. “We hit covid and we hit post covid which was probably worse than COVID and then we experienced as many businesses do a nationwide labor shortage,” continued DeFazio. The business, now struggling to catch up with what is the rest of this winter season.
“We keep on taking punches,” remarked DeFazio.
Even though snow has made its way north, the Owner of Timbers Resort Sarah Long, noted that the snowless holidays have already financially cut into their season ahead. So much so that 43 local businesses reported a revenue loss of just under $3.2 million in December alone and predict and unified together to appeal to the state for any relief funds.
“Usually we’re snowmobiling by mid-December a little bit and then like I said in the week between Christmas and New Year that’s where we make all of our revenue for December,” commented Long.
Starting Tuesday afternoon, the Lake Gogebic Chamber of Commerce, along with the two resorts, is regularly hosting a strategic planning workshop, to map out the rest of the season.
“Now everyone’s getting on board and what can we do as a community to help cross-promote each other to help spur business to help bring some life, I think that’s good a good attitude gets you a lot of places”
The business owners noted that even though some years see weather and financial challenges, the experience you gain from hidden places like AJ’s Lodge and Oven is priceless every year.
The full statement sent to the state of Michigan by the Lake Gogebic Chamber of Commerce:
The current and forecasted weather conditions are having a disastrous financial impact on the entire small business community of the Western U.P. These small businesses rely on winter tourism and recreation for their survival and the winter season customarily accounts for approximately 85% of these small businesses
annual revenue.
Without snowmobilers, skiers, ice fishermen, snowshoers, and out-of-state tourists, these businesses cannot generate revenue to pay bills, employees, vendors, and all other service-related industry partners. This weather event is creating immediate challenges as well as potential future challenges for the remainder of January and the effects of this state of emergency will undoubtedly be felt for the next several months.
A unified group of small business owners in Gogebic and Ontonagon Counties have formally appealed to the State of Michigan for any relief, assistance or potential State and Federal Contingency Funds that may be available. To date, 43 Gogebic and Ontonagon businesses have reported combined revenue losses of $3.116,494 million for the month of December alone, which really comes down to 7 days in December (December 26-31).
That financial loss is business that cannot be recovered, and that loss of business has a significant ripple effect throughout all businesses resulting in loss of service-related jobs, supplies, and materials not to mention the economic spin-off from all tourism-related businesses. January’s forecasted amount of loss is
based upon the current situation as well as weather forecasts for the remainder of the month. Based upon the forty-three responses that have been received, the January forecasted revenue loss is in excess of $3.8 million.
This crisis situation is comparable to a hurricane or any other natural disaster minus the devastation or loss of life and should be given the same attention as any other relief effort. These businesses need help and support immediately and do not have the luxury of waiting another two to three weeks in the hopes that conditions
change.
Earlier this week, the Western UP CVB and the Lake Gogebic Area Chamber of Commerce reached out to Michigan State Representatives and the MEDC to request support. While waiting for their response, the Lake Gogebic Area Chamber has scheduled workshops for their members designed to help them navigate
through these challenging times, benchmark with other businesses, and plan for the remainder of 2024 in the hope that they can increase tourism for their region and spur economic recovery throughout the Western UP.
