The Canadian Federation of Independent Business (CFIB) is asking municipalities to make construction mitigation a top priority at the upcoming Association of Municipalities of Ontario (AMO) Annual Conference in Ottawa August 18-21.

CFIB has been lobbying municipalities across the country to create construction mitigation programs that include direct funding and/or property tax holidays for small businesses that suffer significant revenue losses due to lengthy and disruptive municipal construction projects.

“Infrastructure needs at all levels of government – including municipal – are continuing to increase, leading to more construction mayhem and heavy revenue hits for affected businesses,” said Julie Kwiecinski, CFIB’s director of provincial affairs for Ontario. “We hope that mayors and provincial ministers and officials attending AMO next week will give this issue the attention it desperately needs as they consider their infrastructure and transit plans for the coming years.”

CFIB has learned in conversations and correspondence with municipal and provincial government officials that the Municipal Act considers direct funding and/or property tax breaks for businesses due to construction impacts as “bonusing”, which is prohibited under the Act.

“We’re asking the province to create a clear legal path for municipalities to financially compensate small businesses for revenue losses caused by major municipally-funded construction projects,” said Kwiecinski. “At the same time, the Ontario government should introduce a small business construction mitigation fund for provincially-funded and controlled construction, like Metrolinx transit projects.”

Recent CFIB data reveals that an alarming 67% of Ontario small businesses have been impacted by disruptions from local construction projects over the last five years, and 69% of those businesses have been affected by multiple projects.

“CFIB estimates that Ontario small businesses lost an average 25% of revenues during the single most significant construction project affecting them over the past five years,” said Kwiecinski. “It’s hard to run a business when many people don’t think you’re even open, hidden behind giant construction equipment, boarded up areas, and closed streets.”

Comprehensive construction mitigation programs for small businesses should also include an improved contracting process that integrates financial compensation measures and a bonus/penalty system for early/late project completions, and a business liaison officer who canvasses affected areas to regularly share project updates and planned disruptions like water shutoffs.

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