Businesses urge city to offer more facade grants

Edmonton’s matching-grant program for renovations to corner stores and main streets is in such high demand it ran out of money by March this year.

That’s how many small business owners are stepping up to renovate their facades when the city gives them roughly 20 per cent of the money back.

Now the business improvement areas are asking council to expand this suite of programs, adding $1.2 million a year for the grants and $750,000 a year for related city projects to upgrade the sidewalks, plazas and public infrastructure in the target zone.

Edmonton brought in the first of the facade grants 15 years ago after the city’s shopping habits shifted to indoor malls and many of Edmonton’s commercial main streets fell into disrepair. High vacancy rates became a problem when vacant and broken windows gave the whole block a rundown feel, encouraging crime and driving away customers.

But these programs are helping turn that around, several business area executives told city council’s executive committee Monday.

“This has very high value and return on investment,” said Ian O’Donnell, executive director of the Downtown Business Association. It’s convinced hundreds of business owners to step up and improve the look of the street, which is what attracts customers.

“It does a public good. You walk by the facade. Whether you are a patron or not, you see it,” said O’Donnell, asking the city to ensure the designs supported are those that have a good design — windows on the street, welcoming lights and an appealing colour scheme.

The original 15-year facade improvement program allowed 50 per cent of allowable expenses to get reimbursed, but city officials said they’re seeing on average $5 invested from the private sector for every $1 from the city.

Since then, the city also added a development incentive program targeted at long-term vacancies and mixed-use buildings, which has been funded by a series of onetime investments. City officials are recommending that program be funded with a constant $750,000 a year.

Those grants are seeing private dollars up to $19 for every $1 in a matching city grant.

Recently, Edmonton also ran a pilot project targeting areas outside the main commercial streets, investing in a bowling alley, food stores, hair salons and other small retail shops in Newton, Elmwood, Ritchie, Calder, Belvedere and Patricia Heights.

Officials are now recommending $500,000 per year in ongoing funding for that. The budget requests go to council for debate this fall.

“I’d advocate for this at least being in the middle of the debate. Certainly, the value is clear,” said Coun. Michael Walters, who worked with landowners at Petrolia Mall to use these grants as well. He said strong local businesses can become a gathering place in a neighbourhood.

The city also can make this money back through increased property taxes, said Mayor Don Iveson. Some of these businesses essentially pay back the grant in eight to 10 years, he estimated, depending on the type of renovation.

Meanwhile, the debate on Edmonton’s steam train at Fort Edmonton Park was pushed forward to council next week after it became clear opinions were divided.

The train’s maintenance barn is unsafe. It needs to be replaced at a cost of $6.3 million if council wants the train to be running again when Fort Edmonton Park reopens.

Mayor Don Iveson said he thinks council should spend the money but wants to hear from residents before council votes next week.