Groups Call on Edmonton to Pay for Losses to Businesses Due to Construction Disruptions

The city of Edmonton skyline on Feb. 15, 2023. (The Canadian Press/Jason Franson)

Two advocacy groups are asking the City of Edmonton to provide financial relief to business owners whose operations have been affected by local construction disruptions to the point of closure.

The Canadian Federation of Independent Business (CFIB) and the Stony Plain Road Business Association (SPRBA) are calling on Edmonton’s mayor and city council to provide financial assistance to businesses that have been “impacted by projects that are disruptive to their operations,” according to a July 29 joint letter.

The groups say 25 businesses in the area have been forced to close over the last three years due to the impacts of construction, including ongoing work on the city’s light rail system (LRT), which they say has consisted of “construction stagnation and weak actions from the City of Edmonton.”

During a meeting held on June 19, the council’s Executive Committee decided to postpone by nearly two months voting on a draft policy addressing financial losses during major construction projects, according to the committee’s meeting minutes.

The council said in a June 29 report that the city “currently takes many proactive steps to support businesses impacted by major construction projects,” although they are not financial in nature.

The city’s actions include providing advance notice to businesses regarding the construction, making sure access to business is maintained, and “encouraging contractors to support businesses in areas of major construction,” the report said.

The authors of the joint letter, CFIB director of interprovincial affairs Keyli Loeppky and SPRBA director Todd Janes, said the committee’s decision was “a severe disappointment to businesses in the area,” and that business closures are harming the economic well-being of the community and the city as a whole.

“Numerous businesses continue to face operational disruptions, challenges with accessibility and delivery logistics, and significant decreases in sales and revenue,” they wrote.

They added that, while incurring losses due to construction disruptions, Edmonton businesses have faced an 8.9 percent average property tax increase this year. This was the highest increase in more than a decade, according to an April 23 city news release.

The 2024 property tax increase was unanimously approved by the city council in April to “allow the City to respond to growing financial pressures so it can continue to deliver the 70 services Edmontonians rely on every day,” officials said.

Loeppky told The Epoch Times in an email that this is the second letter they have sent on the matter. She said they have received out-of-office responses from most councillors, and that the only councillor to respond to either letter was Andrew Knack, representative of Ward Nakota Isga. But his interest in the issue, she said, has not made a difference for businesses on the ground.

“It would have been nice for the Executive Committee to hear or pass the draft policy back in June to at least get the ball moving over the summer,” she said.

In their July 29 joint letter, representatives are urging the Executive Committee and Edmonton city council to prioritize financial support for the affected businesses lest “help arrives too late to small businesses that are in desperate need now.”

They also asked that a financial relief program be available to all Edmonton businesses impacted by municipal construction projects, and that the application be straightforward.

The next Executive Committee meeting is scheduled for Aug. 14.

The Epoch Times contacted the City of Edmonton for comment, but didn’t hear back by publication time.