Calgary business owners are adding their voices to a growing call in Canada for municipal governments to compensate small business owners during road or other construction projects.
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According to the Canadian Federation of Independent Business (CFIB), two in five businesses across Canada are impacted by construction — from minor inconveniences, such as dust, to major impacts, such as entire roadways being ripped up.
“There are construction projects that are dragging on for years rather than months,” CFIB Alberta director Amber Ruddy said.
“As you can imagine, it leaves business owners in a very difficult position.”
Buon Giorno Ristorante in Calgary is just one of many business in that position.
It saw a drop in business of 32 per cent in September and a drop of as much as 34 per cent in October. Owner Claudio Carnali blamed construction for his business woes.
“It’s never-ending on this road,” Carnali said.
17 Avenue SW in Calgary has seen its fair share of construction activity — years of it, in fact. Some businesses have said they have been forced to close because of it.
At clothing boutique Frank and Oak, management said it’s getting better but the summer months were slow and that’s not a surprise.
“Quite uninviting with all the construction in front of us,” Alexandra Arndt said. “Especially with all the dust in the summer, the wind, the smell.”
Most businesses in the area understand the need for construction and road repair. But they would also like to be compensated for lost business, which is something the city of Montreal is now doing.
In what’s being touted as a Canadian first, Montreal has announced it will be awarding merchants direct financial compensation for lost revenues due to road work.
Retail shops, restaurants and others could receive up to $30,000 a year in financial aid.
The city has set aside a budget of $25 million over the next four years to help businesses affected by public work projects on the Island of Montreal. There is also $16.8 million to help organizations that work with businesses.
The CFIB is urging all cities across Canada to act in one way or another.
“We’re not talking about completely compensating a business for their livelihood,” Ruddy said.
“But what we are talking about is a symbolic way to recognize that this needs to be addressed.”
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Ruddy said there are ways to help businesses without adding to the growing civic tax burden.
She suggested rewarding construction companies when projects come in on time, making companies pay penalties when projects come in late, and having business liaison officers to work with small businesses.
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Calgary Mayor Naheed Nenshi said it’s something the city would definitely consider.
Nenshi added council would just have to think about what makes sense and how they would be able to help and that will be discussed in the coming months.
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