Malda Loop businesses battle construction as profits plummet

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Cameron Fraser hit a mental breakdown in February.

As construction rages on outside the Marda Loop restaurant Fraser & Fig, he and his fellow business owners felt like they were left out in the wind for months.

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His business’s revenue has decreased by 20%. Some claimed that their income was 40 to 50 percent less than normal. One of the stores, Abt 22 Boutique, completely cut its losses and closed permanently last November, but its owner told local media that construction was primarily responsible for the decision.

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The Marda Loop Main Street project has been planned for years, but Fraser said there has been minimal communication from the city about week-to-week operations and how it will affect the area. , he said. With little warning, ever-changing road closures and detours became part of daily life.

“No one knew what the hell was going on,” he said.

On February 5, he and nearly 20 other Malda Loop business owners wrote a letter to the city council asking for help. Some time later, Fraser and several business owners found themselves sitting across Gondek’s table at the Marda Loop Merchants discussing the situation.

About a month later, a $5,000 lifeline for Mardaloop businesses affected by the construction was unanimously approved by the council after Mr Fraser and his businesses, on the advice of the mayor, presented it to the council. The funding is being used on a pilot basis to study how to permanently implement such a program, and is the first such program to be implemented in Western Canada.

“The good news in all of this is that the mayor actually listened to us,” Fraser said. Bridgeland businesses are also eligible to receive grants during the construction of their own Main Street projects.

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Utility work underway at 33rd and 34th Streets SW in Marda Loop, a must-see for drivers entering the neighborhood from the Crowchild Trail, will soon be replaced by a neighborhood transformation called the Main Street Project. — Local business owners say renovations are needed, but they’re also digging deeper into profitability.

Once completed, the area will have new landscaping, wider bike lanes, more seating areas and new gathering areas. Construction is expected to be completed in 2025.

Located just south of downtown, businesses in Malda Loop rely heavily on Calgarians who drive to work in the neighborhood. When WOW Holdings CEO Andrew Kim established a WOW Bakery store in the area, management said about 80 percent of traffic would be driven or parked in the neighborhood. I calculated that it would come from people. He estimates that the store’s revenue has declined by 50 percent since construction began.

In recent months, parking has been in short supply and traffic jams have become commonplace for both visitors and visitors to the area.

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$5,000 gives a “good first step” but is not enough.

Boogie’s Burgers, a local burger joint on Southwest 33rd Street, was recently fenced off while city workers excavated in front of it. Once the utility work is completed and sidewalk renovations begin, the plywood will serve as the restaurant’s entrance while the sidewalk is stripped away.

Brent de Decker, general manager of Boogie’s Burgers, said the $5,000 payment is appreciated, but the impact on the company’s bottom line will be minimal. He said Boogie sales have declined about 15% since construction began.

“For us, it’s a pretty small drop,” he said. Like some of his colleagues, he proposes reducing property taxes for construction companies.

Graham Guerrillo, community business relations manager for the City of Calgary, said the city evaluated its options, but the relief may not end up in the pockets of business owners because landlords are the direct beneficiaries. said.

Instead, Calgary took inspiration from Montreal’s Construction Relief Program, first developed in 2018, which provided one-time grants of $5,000 to construction-impacted businesses. Montreal will also compensate businesses up to $40,000, with a precise amount calculated based on the impact the construction had on profits. (Montreal’s program is the only construction relief program in Canada.)

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Guerrillo said the city believed the $5,000 amount was the least burdensome option for businesses and allowed them to act quickly.

“What we felt was that we wanted to accommodate people who were building this year,” he said. “Let’s take something similar to Montreal as a starting point and learn from it rather than spending the next few months engaging with businesses. That way businesses can benefit right away.”

Andrew Seniya, a senior policy analyst with the Alberta-based Canadian Federation of Independent Business (CFIB), praised the city’s implementation of the grant funds. Malda Loop businesses consulted the CFIB in drafting their letter to the city.

“The grant program is a good first step, but it shouldn’t have gone this far,” Senya said.

“People are making an effort”: City involvement is appreciated

The city also created a new department two years ago aimed at helping businesses through large construction projects, with Mr. Guerrillo in part leading the charge. Guerrillo said the city has created a community “liaison” to serve as a point of contact for businesses during construction. The city has assigned one liaison to Malda Loop and recently hired another.

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DeDecker and Fraser have noticed increased engagement with the city and construction workers since the issue was raised earlier in the winter. The Malda Loop Business Improvement Association (BIA) is also preparing to air a television commercial encouraging Calgarians to shop local, hoping further efforts by the city will draw more customers to the area. ing.

Still, companies expect profits to remain low until construction is complete.

But after seeing the city’s efforts, Frazier’s sour feelings about the city have recently eased, and he has found optimism as the district undergoes the changes he believes are ultimately needed.

“People are trying. That’s what I’m seeing right now,” Fraser said. “If you had talked to me a month and a half ago, I would have said, ‘I hate everyone.'”

mscace@postmedia.com
X: @mattscace67

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