Province should ban commercial evictions: Notley
Alberta Premier Jason Kenney needs to ban evictions for commercial renters until businesses can make their storefronts profitable again, NDP Opposition Leader Rachel Notley said Thursday.
“If we want to restart the economy, we need to prime the pump,” Notley said at a news conference. “Some businesses were able to reopen last week, but that doesn’t mean they’re out of the woods. Restaurants are only operating at 50 per cent, and retail stores are seeing much less foot traffic.”
Many businesses who were forced to close their doors amid the COVID-19 pandemic are now behind on rent payments and can’t access the Canada Emergency Commercial Rent Assistance (CECRA) because their landlords can’t or won’t apply. Under the CECRA program, which Alberta pledged $67.2 million towards, the governments cover 50 per cent of eligible small businesses’ rent, while landlords and businesses each foot 25 per cent for April, May and June.
Justin Brattinga, press secretary for Economic Development, Trade and Tourism Minister Tanya Fir, said in an emailed statement that the province encourages participation in CECRA, but is aware of businesses’ concerns.
He said a commercial eviction ban would be possible, but “legally difficult” because there isn’t legislation that governs commercial tenancy in Alberta; it is governed by contract law. The NDP said the government could pass legislation or issue an order. Nova Scotia instituted a temporary ban under emergency legislation in March.
According to a recent survey by the Canadian Federation of Independent Business, 88 per cent of small businesses said provinces should step in with eviction bans.
Judah Busheikin, president of Cookies By George Inc., said reluctant landlords have been the biggest hurdle for some small operators who want to access rent relief. Of the commercial landlords his franchisees lease from in Alberta, only two will be participating in the program, while 10 will not.
Nate Box, owner of the Black Box Hospitality group which includes restaurants, cafes and a liquor store in Edmonton, said that the group’s landlords have been largely accommodating but don’t have an incentive to give tenants such a large discount.
For Kirsten Proulx, owner of Henry’s Interiors, rent and expenses have been a challenge, even though the business’ landlord has deferred the rent so far.
“Everything is up in limbo, rent’s coming due here in 10 days. It’s stressful.”
Meanwhile, landlords have also criticized the program’s eligibility requirements and lack of details.
Natalie Charlton owns Shop Harrow in Edmonton and is a commercial landlord. She said there hasn’t been enough communication, and pointed out that the program excludes businesses that have tried to generate revenue with online and curb-side sales.
Notley said the province needs a subsidy program created in consultation with landlords and tenants that is accessible to both, and a ban on evictions could get everyone to the table.
The latest poll by the Canadian Federation of Independent Business shows although 47 per cent of small businesses in Alberta report being fully reopen, one-third are hesitant to follow suit over fears of potential PPE shortages.
The NDP has also called for grants ranging from $5,000 to $10,000 to help businesses with relaunch costs such as installing barriers and getting PPE, plus freezes and rebates on insurance.