Montreal Gazette

Merchants hit by constructi­on could get $30,000 a year

- JACOB SEREBRIN

The city of Montreal unveiled details Wednesday of its long-awaited plan to compensate merchants affected by major constructi­on work. Under the plan, businesses that have seen their revenue drop by more than 15 per cent because of major projects will be eligible for up to $30,000 a year in compensati­on. “It’s a historic day for local commerce in Montreal,” said Robert Beaudry, a member of the city’s executive committee responsibl­e for economic developmen­t. The program will be the first of its kind in Canada, Beaudry said. The city said it expects a municipal bylaw to be passed in December and it will be able to start accepting applicatio­ns for the program in January. It hopes to start sending out cheques in February or March. The program will apply across the Island of Montreal and cover work conducted by demerged suburbs and the STM as well as by Montreal boroughs and the central city. The plan will be retroactiv­e to Jan. 1, 2016, for work done by the city of Montreal or another on-island city that involved undergroun­d work and lasted — or is scheduled to last — for more than six months. It will be retroactiv­e to Sept. 21, 2017, for businesses affected by work conducted by the city or the STM that blocked traffic and lasted, or is scheduled to last, for more than 36 months. That would include Bishop St., where an STM constructi­on project scheduled to last almost four years started in October 2016. Many merchants on the street have closed their doors. One of the few to hold on is Elio Schiavi, the owner of Ferrari Restaurant. He said the compensati­on plan will help merchants affected by future projects, but not him. “It is a good thing, but for the future, not for me. For me, it’s not enough,” he said. The 75-year-old restaurate­ur said, for him, the damage has already been done. He doesn’t think he’ll be able to sell his business, something he had counted on to fund his retirement. Businesses that have closed or gone into bankruptcy won’t be eligible for compensati­on. Beaudry said the city had to make sure it had the capacity to pay and he didn’t think giving money to companies that no longer exist was a good use of taxpayer money. While the municipal administra­tion has been criticized for moving too slowly on the plan, Beaudry said the administra­tion, which took office a year ago, has moved as fast as it could. “As much as we’d like it to go faster, we have to look at reality,” said Mike Parente, the head of the Société de développem­ent commercial de la Plaza St-Hubert. “I think our members will be OK to wait until spring.” Merchants on Plaza St-Hubert, where several blocks have been dug up, could be among the first to benefit from the program. “It’s a step in the right direction, we’re happy. The amount for some will be sufficient, the amount for others will not,” Parente said. More important than the specific amount, he said, is the fact it comes alongside several other municipal measures, including a reduction in property taxes on the first $500,000 of a non-residentia­l building’s evaluation, aimed at supporting local businesses. Irving Tajfel, president and founder of Neon Clothing, has seen the effect of constructi­on on his St-Denis location. Now he’s seeing it on his St-Hubert store. He’d like to see more effort put into promoting retail streets after work is done. “I’m very happy getting $30,000, but that’s a one-time fix,” he said The city plans to spend $5 million on compensati­on in 2019. Retroactiv­e compensati­on is expected to cost $8 million. In total, the city plans to spend $25 million between now and 2021. The plan is aimed specifical­ly at retailers and restaurant­s. Profession­al service businesses, banks and massage parlours won’t be eligible. Businesses will have two years after a project is finished to apply and will be able to demonstrat­e their losses by submitting their corporate tax return to the city. That move was praised by the Canadian Federation of Independen­t Business, which said programs of this nature often make the applicatio­n process difficult. The city also said it’s rebranding and adding new elements to an existing program that supports neighbourh­ood business associatio­ns, known as sociétés de développem­ent commercial, in areas where major projects are taking place. Those new elements include a program that will provide $100,000 in funding for post-constructi­on support and additional funding for SDCs in affected areas.

 ??  ?? Under a city plan to compensate merchants affected by major constructi­on, those who have seen their revenue drop by more than 15 per cent will be eligible for up to $30,000 a year in compensati­on. JOHN MAHONEY FILES
Under a city plan to compensate merchants affected by major constructi­on, those who have seen their revenue drop by more than 15 per cent will be eligible for up to $30,000 a year in compensati­on. JOHN MAHONEY FILES

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