The City of Ottawa has proposed a year-long 10 per cent reduction on patio fees for businesses.
The reduction, which was proposed by the city's planning department, would see businesses pay $1.23 per square metre per day in patio fees, compared to the previous cost of $1.37. It would apply to businesses that set up patios on city sidewalks and municipal property.
The proposal wouldn’t have a big impact on restaurants with small patios, but it would greatly help those with bigger ones, said Jim Bickford, co-owner of Fresco Bistro Italiano on Elgin Street.
“It’s going to have a big impact on guys like St. Louis Wings and Ribs who have that huge patio on the east side of the street,” Bickford said.
“But little guys like me with the little twelve-seater patios, it doesn’t really have much of an impact at all," he said. "It’ll likely save us a couple hundred bucks I guess.”
According to a report by the Ottawa Council of Business Improvements Areas, businesses in Ottawa pay more in patio encroachment fees than any other city in Canada.
Every year the city makes about $600,000 from patio encroachment fees, including from residential patios. The proposed reduction for city street and municipal property patios is not expected to significantly change that amount.
According to the planning committee's report, the one-year reduction would allow city staff the chance to review the ongoing fee structure heading into 2015. In addition, the city will consider a proposal to separate each type of patio encroachment.
The fee rollback is the latest effort by the city to encourage more businesses to set up sidewalk patios. A pilot project that reduced patio fees on Preston Street by half was met with lukewarm results, with only one new patio opening during the two-year trial, according to media.
The planning committee will consider the proposal on March 25.