Council panel backs $2 million in business relief

Money will come from reserves and be administered by city hall

COVID-19 has created considerable hardship for businesses in Regina. And the Regina and District Chamber of Commerce hopes the city will provide $2 million in relief for those struggling.

During a meeting of the city’s executive committee Wednesday morning John Hopkins, CEO of the Regina and District Chamber of Commerce, laid out a proposal to help businesses. The proposal would take money from the city’s General Fund Reserve (GFR), often described as a rainy-day fund, and offer grants to businesses.

Hopkins said he appreciates this is an “unorthodox request” but added “if it’s not raining now it never will.”

The committee, which includes all members of city council and the mayor, approved the request, but only after considerable discussion around how the grants will be administered and by which entity.

Mayor Michael Fougere said the money will largely go toward helping businesses to weather new regulations and a shift in consumer patterns better.

The GFR is currently sitting at $24.6 million according to city administration.

“We have an obligation as a council to help the business community,” said Fougere, who said the reserve is still quite healthy.

Hopkins said major new costs for already struggling businesses come in the form of supplying personal protective equipment (PPE) for workers.

If approved by council on July 27, the city will administer the grants and receive applications, where initially it was prosed the Chamber of Commerce take a more handson role.

That was altered by Coun. Bob Hawkins (Ward 2) who said this would create a potential conflict of interest as to how the grants were administered.

“If the chamber is accepting the applications, the appearance of bias is there,” said Hawkins.

Coun. Sharron Bryce (Ward 7) said the chamber, which represents 1,200 businesses, being in charge of the grants may alienate or prevent entrepreneurs and others not a part of the chamber from applying for assistance. “I think we need to have it open to all and I think we need to have the accountability of the city,” said Bryce.

Hawkins said in his amendment that since this grant program will use public money, it should be administered by a public entity.

To ensure that the city isn’t choosing winners and losers, a criteria will be further developed to dole out grants.

The report outlines nine factors that would make a business eligible for assistance. That criteria includes how many jobs are affected, the ability to return to work, ability to transition to online sales, how COVID -19 has impacted sales and more.

If more than $2 million worth of applications are submitted, the criteria will be used to determine who gets what.

In terms of eligible businesses, Coun. Andrew Stevens (Ward 3) sought clarification around notfor-profits being eligible. Barry Lacey, the city’s executive director, financial strategy and sustainability, said that since this applies to non-residential property owners that the grants would apply to a wider scope of struggling businesses.

Stevens also asked if businesses who employed people, instead of being owned and run by one person, would be given preferential treatment. Hopkins said returning people to work is at the forefront of the grant and that sole proprietor applications would be given less weight than businesses that employ people.

Another amendment was put forward by Stevens who said he was reluctant to prop up businesses that pay employees below a living wage. He proposed that only businesses paying employees a living wage be eligible for the grant, but it was defeated.

Fougere clarified that the grants would be for companies that have not benefitted from provincial or federal grants and relief, as this would be for separate expenses.

According to the report, grants should start rolling out in mid-august.

Fougere said this “is an issue of speed,” to get businesses the relief they need.

Also the Regina Hotel Association sought a 100-per-cent property tax forgiveness or abatement of property taxes for 2020 for hotels in the city following the collapse of the industry.

Fougere said while executive committee did not vote for this relief, a report from city administration will be brought forward, likely in the fall.