City council has scrapped the idea of a financial assistance program for some west Edmonton businesses shouldering the impact of years of LRT construction.
In an 8-5 vote Tuesday, council members decided against putting $250,000 toward grants for shops and services within the Stony Plain Road Business Association.
It’s the latest rejection of compensation for businesses affected by lengthy city construction projects — Ward Nakota Isga Coun. Andrew Knack has brought it up twice in the past, but never with the result he wanted.
Only Coun. Aaron Paquette, Anne Stevenson, Jennifer Rice and Sarah Hamilton joined him to vote in favour this time around.
Other council members raised concerns about warnings from city officials that another challenging budget process is ahead, with the risk of service cuts and a hefty property tax hike.
City staff estimated costs for the proposed grant program at $225,000 per 100 businesses, which would mean $2,250 payments for individual business owners.
“We heard from businesses that they lost close to $10,000 to $15,000 a month,” Mayor Amarjeet Sohi said.
“And if you’re going to give them $180 a month in a grant funding … it may not actually be any assistance to them.”
Businesses owners along other parts of the future Valley Line West are also feeling the impact of construction disruptions, and Sohi said he worries about prospect of leaving them out of relief efforts.
But Knack argued the stretch of Stony Plain Road where the Valley Line West will run in the future is dealing with a unique set of circumstances, with construction forcing road closures for much longer than locals were initially told to expect. He said council has moved before to support specific business associations and neighbourhoods.
“What I worry about is if it’s not meaningful enough, is the answer to do nothing, or to at least do something?” he said.
“I’d like to do something to try to show that we can take a little bit of action to recognize a particularly unique part of the city that is going through struggles now.”
Local business impacts
Valley Line West LRT construction has been underway along Stony Plain Road for more than three years, with business owners trying to cope through ripped-up roads, blocked parking lots and closed sidewalks.
Percy Wiredu runs three restaurants in Edmonton, including El Corazon, at the corner of Stony Plain Road and 142nd Street. He told council’s executive committee last week that LRT construction cut business revenue by more than a third, forcing them to lay off staff.
“Part of our frustration is the lack of progress and what seems to be constant delays,” he said.
“As a restaurant and a business, we have to budget. However, the communication isn’t happening.”
Vi’s for Pies owner Josh Lawrence told CBC News that the uncertainty has been a struggle for him too, after taking over the Stony Plain Road restaurant three years ago.
“When I first took over, it was a good year. And ever since then, it’s kind of been like, break even, no extra.”
With parts of Stony Plain Road partly or fully closed for construction on the Valley Line West LRT, businesses are raising concerns about customers’ ability to get to them. CBC’s Natasha Riebe took a walk to see how the disruption is affecting the street.
Stony Plain Road Business Association executive director Todd Janes said local businesses haven’t had any financial relief for years, and governments need to plan to deliver that support in advance.
“It’s not enough to say, ‘Suck it up for a few years. If a few of you die, that’s OK, because we’ll get a few others in over time,’ ” he said.
“I think without some municipal government intervention along Stony Plain Road, you’re going to either pay now or pay later.”
CFO Stacey Padbury told council’s executive committee last week that there isn’t extra money for a grant program.
“I do not see a scenario where I bring this to you funded, given everything I’ve shown you,” she said.
“It’s up to you, at budget, to determine whether you want to fund this.”
Ward Karhiio Coun. Keren Tang said she can’t justify the new expense, in light of the conversation about the city’s financial challenges.
“If the coffer were endless, I think it would be really important to consider this proposal,” she said.
“But we’ve also heard from administration that even after shaking all the pants, couches, jackets, whatever creative ideas we can find for unused funds, they will likely go toward one of the structural issues we have to face to prevent further harms down the road.”