Construction disruption compensation

Hey there, time traveller!
This article was published 06/06/2024 (699 days ago), so information in it may no longer be current.

Winnipeg should follow in the workboot-prints of other Canadian cities and compensate small businesses hurt by construction, a national lobbyist asserts.

The Canadian Federation of Independent Business has sent a letter on the issue to Mayor Scott Gillingham and city council, urging financial or other compensation, such as temporary tax breaks.

The CFIB also called for construction project completion within strict timelines and better communication with affected businesses.

The message comes amid the return of pylons and blockades to Winnipeg streets.

“Every year, like clockwork,” said Mel Mozel, shaking his head.

The lane closest to his Portage Avenue tanning salon, Bodyshades, was blocked by construction Thursday. Foot traffic has been slow, Mozel relayed — the removal of parking in front of his business affects sales.

“I thought it was just a (one) day thing,” he said of the construction. However, the lane has been closed since Monday.

Mozel said he hadn’t received any advance notice about the construction. Similar signs pop up regularly and take a bite out of revenue every time, he added.

Two-thirds of Manitoba small businesses say they’ve been impacted by disruptions from construction projects over the past five years, according to CFIB data.

Disruptions include traffic, noise, dust, debris and challenges of accessibility for customers and couriers.

Nearly half of those businesses said they weren’t given notice before projects began.

Across Canada, companies affected by construction in the last five years spent an average $53,000 on public construction-induced costs, the CFIB reported. Fixing property damage and temporarily relocating, among them.

“This is something we’ve been hearing about for years and years,” said Brianna Solberg, CFIB director of legislative affairs for the Prairies and northern Canada.

There have also been news stories: in 2023, Eadha Bakery Worker Co-op temporarily closed shop while in a construction zone; the year before, Bagelsmith feared barriers erected during skywalk construction would wreck its bottom line.

In 2019, a City of Winnipeg working group — which involved the CFIB — released a report with road construction recommendations, including improving communications with affected residents and businesses.

The working group was derailed during the COVID-19 pandemic, Solberg said. “A formalized plan — like a construction mitigation policy — would be really great.”

In its June letter, the CFIB spotlights the City of Montreal. The Quebec metropolis provides financial compensation of up to $40,000 for businesses affected by major construction work.

This year, the City of Calgary introduced a pilot project where eligible businesses in two neighbourhoods would receive $5,000 to mitigate the impact of nearby construction. The Alberta city is also employing liaisons to increase communication with affected businesses.

Such officers are crucial, as is project completion within strict timelines, Solberg highlighted. Financial compensation or temporary tax breaks for entrepreneurs would be the “cherry on top.”

The CFIB has heard direct compensation isn’t feasible because it’s not in Winnipeg’s budget, she added.

“We’re also aware of the necessity of this work,” Solberg noted, calling construction a “positive investment” in the city’s future.

Gillingham hasn’t yet seen the CFIB letter, his office stated Thursday.

The mayor is aware of the Montreal program, but for now, Winnipeg is focused on speeding up construction completion, said communication director Colin Fast.

The city will soon hire a chief construction officer to, in part, deliver faster projects, Fast added in an email.

Winnipeg has scheduled more than 150 lane kilometres of road construction projects this year. It’s budgeted $138.3 million for them, a decrease from last year’s $159 million.

In addition, water and sewer work, utility work and building construction also close or limit access to streets.

“We make every effort to minimize the impact of construction on businesses,” Julie Dooley, a spokeswoman for the city’s public works office, wrote in an email.

Efforts include co-ordinating with properties affected by road construction and mailing notices to affected residents and businesses. The notices ask concerned citizens to contact the city, Dooley said.

City bureaucrats told council in June 2023 no major Canadian city had a universal compensation program for businesses affected by road construction. It highlighted Montreal and Toronto as hubs with programs available for larger projects.

Maria Miolli would just like a timeframe: when will construction on Taylor Avenue end?

Prairie Trail Physiotherapy’s office manager dodges a crater-like pothole and deals with congestion while driving to work. The clinic didn’t get notice about the construction, Miolli commented.

Jordan Hiebert, co-owner of Lacoste Garden Centre, said the company wasn’t told in advance about a nearby lane closure — which could affect customer traffic from Sage Creek and Island Lakes — amid the creation of the St. Mary’s Road interchange.

Overall, though, the construction hasn’t really affected customer traffic, Hiebert said. Lacoste has been well-notified about the major project; Hiebert added he’s happy it’s happening.

The CFIB also sent a letter to Brandon’s city council requesting construction mitigation relief, Solberg noted.

The national organization released an open letter on the subject for Canadian mayors and councils. The memo comes as municipal politicians meet in Calgary for a Federation of Canadian Municipalities meeting this weekend.

gabrielle.piche@winnipegfreepress.com