Ontario Construction News Staff Writer
The Canadian Federation of Independent Business (CFIB) is calling on municipalities to prioritize construction mitigation strategies at the Association of Municipalities of Ontario (AMO) Annual Conference in Ottawa, scheduled for August 18-21.
CFIB has been advocating for municipalities across the country to establish construction mitigation programs that offer direct financial support or property tax relief for small businesses facing significant revenue losses due to extensive and disruptive municipal construction projects.
“Increasing infrastructure demands at all levels of government, including municipal, are resulting in more construction disruptions and severe financial impacts on local businesses,” said Julie Kwiecinski, CFIB’s Director of Provincial Affairs for Ontario. “We hope that mayors and provincial officials attending the AMO conference will give this pressing issue the attention it requires as they plan future infrastructure and transit projects.”
CFIB has discovered through discussions with municipal and provincial officials that the Municipal Act views direct funding or property tax reductions for businesses affected by construction as “bonusing,” which is prohibited by the Act.
“We are urging the province to establish a clear legal framework that allows municipalities to financially compensate small businesses for losses due to major municipally-funded construction projects,” Kwiecinski said. “Additionally, the Ontario government should create a small business construction mitigation fund for provincially-funded projects, such as Metrolinx transit initiatives.”
Recent CFIB data indicates that 67% of small businesses in Ontario have been impacted by local construction disruptions over the past five years, with 69% of those businesses facing multiple projects.
“CFIB estimates that Ontario small businesses experienced an average revenue loss of 25% during their most significant construction disruption in the past five years,” Kwiecinski noted. “It’s challenging for businesses to operate when they’re obscured by construction equipment, boarded-up areas, and closed streets.”
To better support small businesses, comprehensive construction mitigation programs should include an improved contracting process with financial compensation measures, a bonus/penalty system for project completion timelines, and a business liaison officer to regularly update affected areas on project progress and planned disruptions, such as water shutoffs.
The CFIB is also collecting signatures on a petition that will be delivered to the provincial government.
“While I appreciate the need to improve our roads and infrastructure, I can’t benefit from the finished product if my business is forced to close down,” the petition reads. “Diverted foot traffic, excessive noise, and dust and debris all drive customers away.
“Frequent delays and shifting timelines only add more uncertainty.
No business should have to close because of city or provincial construction projects.
The petition calls on the government to:
- Introduce a small business compensation program for heavily disruptive construction.
- Bring in a “no surprise” rule for upcoming construction projects.
- Use a “dig once” approach to project timing.
- Introduce an improved contracting process and a bonus/penalty system for early/late project completion.
- Have a liaison officer on site to keep the community informed on the latest project developments.