The sky is not falling on Vancouver businesses along the two streets where separated bicycle lanes were installed to encourage more cycling in the downtown core.
A study by a group of business stakeholders released Thursday found the two-way bike lanes on Hornby and Dunsmuir streets resulted in a total drop in sales of $2.4 million.
That translates into “an approximate profit loss of $480,000 over a full year,” said the report, which will be tabled July 28 at city council’s planning and environment committee.
But the estimated loss “is relatively moderate based on industry standards and, in general, insufficient to create persistent vacancies,” the report found.
“The moderate negative impact of the lanes will diminish over time as mitigation strategies take effect.”
The city installed large concrete dividers to separate cyclists from traffic along Dunsmuir in June 2010 and Hornby in December 2010.
Cyclists and business owners squared off at extensive public hearings in city council, the loss of on-street metered parking being one of the biggest concerns.
Council asked the Vancouver Economic Development Commission to chair a stakeholder group on the bike lanes – the Downtown Vancouver Association, the Downtown Vancouver Business Improvement Association, the Vancouver Board of Trade, and city staff.
The city contributed $120,000 and the VEDC hired consulting company Stantec Inc. to conduct the study in April.
It found vacancy rates went down dramatically on Hornby – from 11 and 12 per cent, respectively, in 2009 and 2010, to two per cent in April 2011. A Stantec spokesperson told The Province the improving economy could be one reason for the improvement.
Coun. Geoff Meggs called the report “very encouraging.”
“On the traffic side, we see that, on Hornby, traffic volumes are back to where they were before the bike lanes, that parking is readily available underground even closer than it was on the street level before.
“We’ve got fewer people riding on the sidewalks, which is a boon for pedestrians.”
Meggs noted the travel times on Hornby are “virtually the same” as before.
“We’re seeing a big increase in cyclists – 200 to 300 per cent on Hornby Â- and it continues to increase on Dunsmuir, too,” he said.
Meggs said the low participation in the study by businesses who claimed to be losing profits due to the bike lanes was “disturbing.”
Of the 15 businesses that reported a negative impact greater than 15 per cent, only four provided hard evidence of their misfortune.
Five problem blocks – four on Hornby and one on Dunsmuir – were identified and solutions were recommended.
“The solutions could be improving signage, changes in traffic patterns, parking hours and restrictions, that kind of thing,” said Meggs, an avid cyclist who was involved in a serious collision while riding his bike on the bike route on Angus Drive bike route in March 2010.
Charles Gauthier, executive director of the DVBIA, said the “moderate” economic impact the study found cannot be taken lightly by Vancouver’s politicians.
“They just can’t ignore this study,” he said. “It is clear the separated bike lanes do have an economic impact.”
Gauthier said time will tell if the “moderate” economic impact continues or if traffic and personal habits change and lessen the burden on businesses.
“The bike lanes have had an economic impact and we support ongoing monitoring.”
In some cases, Gauthier said, the impact depends on the type of business a person is operating along Hornby.
Helen Chung and her husband Bong have operated the Edelweiss Cafe in the 400-block of Hornby for 18 years and she said business is down 30 per cent because of the bike lane.
“These bike lanes have not been good for business,” she said. “There’s no parking and people don’t come.”
She said with high rental prices, taking a 30-per-cent hit has been hard.
“We might have to close our business down because of the bike lane,” said Chung.
Highlights of business impact study report on separated bike lanes:
“¢ A very small number of businesses – four – provided evidence of negative economic impacts.
“¢ Five problem areas have been identified – four on Hornby and one on Dunsmuir – and a number of issues have already been addressed, others are being worked on.
“¢ Property owners and managers along Hornby Street said vacancy rates were 11 and 12 per cent in 2009 and 2010, respectively, but vacancy rates have dropped to two per cent since April 2011.
Recommendations:
“¢ Bike traffic lights should be removed or modified.
“¢ Cyclists should be encouraged to frequent businesses along the bike routes.
“¢ Bike lanes should be enhanced with “beautification treatments.”
“¢ Bike parking should be strategically placed.
“¢ A downtown business transportation advisory committee should be established.
“¢ The Vancouver Economic Development Commission (VEDC) should work with city staff and stakeholders to report back with an assessment of economic impacts once two or more years of demonstrable retail lease rates and sales data are more available.
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