Edmonton shoe store wants to leave after landlord opts out of federal rent relief program

The doors at Kunitz Shoes on Edmonton’s Jasper Avenue first closed in March due to public health restrictions.

Months later, the store is once again closed, this time after a COVID-19 exposure.

“There is no risk to the public, but we decided to make the difficult decision to stay closed for the full 10 days until all of our staff can be tested,” co-owner Morgan Kunitz explained.

It’s another blow for a business that has already taken a big hit in sales during the pandemic.

The company reached out to its landlord, asking them to take part in the federal government’s rent relief program.

“The landlord said they would not be participating in the program and effectively blocking us from government funding which would have covered half of our rent from the months that we were closed,” Kunitz said.

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The program sees the tenant pay 25-per cent of the rent, landlords have to absorb 25-per cent and the federal and provincial governments pick up the rest.

“As we went through the application process we found it very difficult and very complex,” said Randy Ferguson, president of ProCura Real Estate Services.

Kunitz’s landlord says the program creates a risk for landlords.

“This program, unfortunately, was not put together in such a way that it would be of benefit to all of the stakeholders,” Ferguson said.

Provincial legislation introduced last month prevents landlords from evicting commercial tenants affected by the pandemic, but does not offer financial relief.

Minister of Economic Development, Trade and Tourism Tanya Fir says she’s aware of recent complaints from both renters and landlords and is willing to listen.

“We are still hearing feedback from tenants and landlords, and we will continue as we go through this process to take in that feedback, and if we need to make adjustments that is something we’d consider,” Fir said last Thursday.

Kunitz’s landlord has offered a 20-per cent rent reduction, but required an extended three-year lease, something Kunitz isn’t prepared to do.

She says after their one-year lease is up, they are looking to move to a new location.

1:58 Some landlords won’t apply for new rent assistance program