Should cities compensate businesses for construction? Edmonton may, but only for major projects

Edmonton businesses affected by major municipal construction projects could be compensated for financial losses if city council approves a draft mitigation policy.

Executive committee members voted unanimously on Wednesday to recommend that council approve a draft policy on compensating businesses hard-hit by construction.

Under the draft policy, the city would create a grant program to help businesses that demonstrate financial losses due to multi-year construction projects.

Front-facing businesses would have to show a gross profit loss of more than 10 per cent to qualify for the subsidy, which would be capped at $20,000 per establishment per year.

"I'm just looking to see if we can have one more piece to the puzzle to help our business community when they're dealing with significant construction in and around their area," Coun. Andrew Knack said in the committee meeting.

Knack said Edmonton can learn from the city of Montreal, which set aside more than $25 million for financial assistance but did not end up spending it all.

"It turned out it was not this massive impact financially to the city, but it allowed them to help deal with some very local issues on some very specific construction projects," he said.

'Unprecedented challenges'

Andrew Sennyah, a senior policy analyst at the Canadian Federation of Independent Business, told the committee 40 per cent of small Alberta businesses surveyed before the municipal election said they would like to see a construction mitigation plan implemented.

"Businesses have been through unprecedented challenges over the last three to four years," said Marnie Suitor, co-owner of The Nook Cafe on 97th Street, which has been affected by LRT construction.

"When you layer on the impacts of major construction, it's really like pulling the intravenous tube out of a patient that's in the middle of an operation," she said.

Todd Janes, executive director of the Stony Plain Road Business Association, told the committee a grant program would be beneficial but it should not be a burden for business owners.

He said businesses would prefer compensation and other supports come before construction starts and remain in place until work ends.

Jehnny Padilla, owner of Kabayan Filipino Store on 66th in Mill Woods, told CBC News on Friday that LRT construction has limited access to the store and complicated deliveries, but her business is resilient.

"We want the best for everyone and this LRT is a good thing for the whole city, so we're OK with it," she said.

Closing due to construction

Only businesses affected by multi-year capital construction projects would be eligible for the new grant, if it is approved, but some business owners in the Alberta Avenue neighbourhood say they deserve compensation too.

Shady Darwish, who owns City Liquidation, said back-to-back Epcorconstruction projectson 118th Avenue have made it difficult for customers to visit his store.

"We couldn't survive this so unfortunately we had to make the call to close the store," he said on Friday.

Charles Kyabaggu, who owns Tropicana Grocery Store, also said the construction on 118th Avenue has killed his business.

"Our customers have run away," he said.

A spokesperson said Epcor's work on 118th Avenue and 88th Street,which began in 2020 and is scheduled to end by the end of this year, will help protect businesses and homes from flooding.

The spokesperson said Epcor put business names on construction fences, offered businesses sandwich boardsand is working with the city to make traffic and parking modifications through each phase of the project.

Darwish and Kyabaggu said they would have appreciated more time to prepare for the disruption and compensation from the city.

"We know that construction is good for everybody, but there should be a plan for us," Kyabaggu said.