Pedestrians navigate the narrow passages on Bank Street between Somerset Street and Laurier Avenue West.
After months of construction on Bank Street, many businesses in the area are hoping for financial compensation, but the city says this just isn’t possible.
Although businesses along the street are still open, many find it very difficult to attract customers because of the heavy construction. The torn up roads, loud noise, and dust are keeping people away.
Gerry LePage, executive director of the Bank Street BIA, says the niche businesses can expect losses of 25 per cent, while general businesses can see sales declines of up to 60 per cent during the construction period.
“Some businesses have a loyal following and will have less losses, but the general merchandise store is going to take a harder loss,” he says. “Bankruptcy is imminent…there’s going to be a certain number of casualties.”
During construction last year, the city allowed businesses to defer their property taxes by five months. LePage says this may have helped larger businesses but was not a substantial help for smaller stores.
James Boyd, the owner of Compact Music on Bank Street near Somerset, says he is hoping for compensation, but he does not expect to see anything from the city.
“The city couldn’t care less about the businesses,” he says. “They aren’t giving us any reductions. If they cared, they might give us some relief from taxes.”
The construction is not only harming businesses in the working zone. Stores on neighbouring streets are also affected.
Carole Gagnon, an employee at Coupe de Ville on Kent Street, says the dust and noise from the construction are a problem.
“It has cost us more in hydro because we’ve had to keep the doors closed because of all the noise,” she says. She also says she believes the city should compensate businesses on Bank Street.
“I’m sure people on Bank can show their income from this year and last year and show a big difference.”
However, the city will not be giving the businesses any financial support.
“We do many streets and many roads over the year,” says Coun. Diane Holmes. “[Compensation] would be very expensive and it is illegal.”
The Municipal Act for Ontario prohibits city grants for private businesses.
Although she agrees the construction is difficult for businesses, Holmes says there is no way around it.
“If we didn’t, there would be sewer overflows into everyone’s basements.”
Holmes says construction between Somerset Street and Laurier Avenue is expected to finish at the end of October. The next stretch of construction on Bank Street will run from Somerset Street to Arlington Avenue.
The construction includes the rehabilitation or replacement of the water main, the road structure and sidewalks, traffic control signals and street lighting. It is part of Ottawa’s city-wide infrastructure renewal plan.
Construction between Somerset Street and Laurier Avenue will cost an estimated $6 million.