Calgary city council votes down $70M small business grant program

There will be no special assistance from city hall for Calgary businesses this year.

A proposed $70M grant program for small business has been defeated by city council in a 12-3 vote.

Mayor Naheed Nenshi, who voted for the grants,says he expects business owners will be disappointed.

"It is frustrating and I can see how folks in the business community would be frustrated because council keeps saying 'we got your back' and yet seems unable to do things that actually have their back," Nenshi said, adding thatcouncil ran out of time and options to craft something to help businesses.

Coun. Ward Sutherland, who also voted to provide the grants, apologized to the business community for the lack of action from council.

I would actually like to apologize to the business community thatas a council we failed to address the issue," Sutherland said."It's too late now. We don't have the options. And at some point we've got to take responsibility. So my apologies."

For the past two years, council gave rebates to the owners of business properties to limit the size of tax hikes they faced.

However, the program was deemed inefficient; it helped the property owner but not the businesses at those properties.

This year, the city proposed giving up to $4,000to small businesses that would apply for a grant.

Business groups panned the idea. Some council members weren't comfortable with the city picking who gets the cash.

"That is very disappointing," tweeted Richard Truscott, vice president for Canadian Federation of Independent Business,Alberta andB.C. "Council dithered and delayed, & never landed on any short-term solution. As a result, a large number of #yyc #smallbiz will be facing huge property tax bills in June."

A task force which will make recommendations to council this fall on how the $70 million could be used to help businesses, likely next year.