a ‘can of worms’ worth considering
The city can compensate businesses when infrastructure projects experience delays
Another Edmonton construction project is falling behind and, yet again, it’s the neighbourhood business owners who will bear the brunt.
After running into pockets of unstable clay in Strathearn, LRT contractor TransEd is trying to make up time and avoid millions in late fees by closing 95 Avenue to traffic for a year. But businesses along that avenue are mostly small mom and pop-type retail outlets — convenience stores, a small appliance repair shop and cafes. There’s a good chance they won’t survive.
Council pretends there’s nothing they can do. Well, no one should buy that anymore. There absolutely is.
Last month, the City of Montreal launched a financial assistance program for retail, rental and service outlets affected by major construction projects. Businesses must submit GST records from before and during construction. The first 15 per cent of the drop in sales is not covered, but everything after that can be claimed up to an annual cap of $30,000.
Budgeted at $25 million over six years, the program is limited to 21 of the largest construction zones across the city. It’s retroactive to 2016 and acknowledges some pain is expected, but it’s unfair for these businesses to suffer for projects that benefit everyone.
In Edmonton, Ward 1 Coun. Andrew Knack introduced a motion to explore an option like this last June. He asked for a report on the pros and cons and got criticized for opening a “can of worms.” It was voted down 9-4. Only councillors Mike Nickel, Aaron Paquette and Jon Dziadyk supported him.
Council rules prevent Knack from bringing that motion back for a year, but any of his colleagues who voted against him could do it today.
“That would help tons. We barely make it as it is; we go month to month,” says Leanne Heidenreich, co-owner of Dorothy’s Appliance on 95 Avenue at 87 Street. They repair microwaves, kettles and other small appliances that would otherwise head to the landfill.
Heidenreich says many shops in her area are new and still trying to build their customer base. They could probably manage a 15-per-cent drop in sales revenue, but more than that will send them under.
Darcy Kaser knows exactly what she’s facing. He lost Call the Kettle Black on High Street after the girders twisted on the 102 Avenue bridge over Groat Road. That extended a road closure by a year and was the last straw.
Kaser, 61, now works at a Mercedes-Benz dealership, but it’s tough to lose a dream and reinvent yourself. He felt bitter when the city collected late penalties from the contractor and shared nothing with faltering businesses.
“It’s unreasonable for the city to just say, ‘Oh well, that’s the price of progress,’ ” he says. “Small business, that’s the backbone of our country.”
The Canadian Federation of Independent Business has been lobbying for changes after it surveyed members and found two in five were affected by municipal infrastructure projects in the last five years, and seven per cent closed or considered closing.
The Montreal policy, a first in Canada, is getting interest from other cities, says senior research director Simon Gaudreault. It treats business owners fairly, but also creates an incentive for city officials and contractors to consider the impact to business as they design the project.
On 95 Avenue, I empathize with TransEd. It faces penalties of $3 million a month if the trains aren’t running by December 2020 and ran into a string of delays.
The river bridge is behind because of an unexpected block of concrete, 95 Avenue and other sections of track are behind because of these pockets of unstable clay (which other city projects also experienced), and the Whitemud Drive bridge is behind because they had to redo poorly cured concrete.
It won’t voluntarily compensate businesses because it’s not in the contract.
But council can’t let TransEd recover on the backs of small business. These local shops are what make our neighbourhoods unique; they provide countless jobs and services in our community. Council takes them for granted at its peril.
Residents in Strathearn are rallying in support. They shouted down TransEd representatives at an information session over the weekend, and I expect angry letters are finding their way to City Hall, too.
But this is unnecessary. A clear, fair policy would take the emotion out. Business owners would know they will be made whole again, and administrators could make decisions based on what’s right for everyone.