Cathy Ellis
BANFF – Calls for tax breaks by many Bear Street business owners suffering financial hardships due to COVID-19 and the $9.5 million construction project have met with stiff opposition.
Most Banff councillors said giving tax breaks for those affected by the long-awaited redevelopment of Bear Street into more of a tourist attraction would set a dangerous precedent for future capital projects.
But Councillor Brian Standish said he believed council owed it to Bear Street businesses to explore tax concessions, given the mistakes and delays made during the construction project that’s behind schedule.
“They’ve been hit hard twice – a gut punch and then a kick to the head,” he said. “COVID and Bear Street reconstruction has decimated a lot of businesses on Bear Street.”
The redevelopment of the 200 block of Bear Street experienced several delays due to unforeseen circumstances with the 100-year-old underground utility infrastructure and the contractor being held up with a major roadway project in Canmore.
There were periods where construction meant there was no front door access to certain retail shops, restaurants and other businesses, forcing them to temporarily close their doors.
Kaylee Ram, a co-owner of Snowtips-Bactrax, said there has been an unfair and one-sided shouldering of the burden due to delays and errors.
“The Bear Street business are suffering from considerable financial losses, including several entering insolvencies,” she said.
COVID-19 is partially to blame, however, businesses argue the intense construction, machinery, noise and dust day-after-day have kept visitors away from the street.
Because of this, many businesses called on council to waive municipal taxes and business licences for 2020 and 2021.
“We certainly saw at points a 98 per cent decrease in income over a month and we are currently operating at about 65 per cent drop,” said Susan Sax-Willock of Willock & Sax Gallery.
The municipality does have authority to give concessions on municipal taxes.
However, administrative officials say property taxes are not a fee for service, but a way to distribute the cost of local government programs and services fairly throughout the municipality.
“A concession for the property owners on Bear Street would mean a reallocation of those costs to other businesses and other locations,” said Chris Hughes, the Town of Banff’s corporate services director.
Mayor Karen Sorensen was dead set against the move, saying there is no guarantee landlords – who pay the property taxes – would pass on the tax break to their tenants.
“If we reduce commercial taxes on a very specific part of the street, it just means that the rest of the commercial sector will be picking up what they’re not paying,” she said.
“Frankly, it’s not a precedent that I am about to start after 16 years on council.”
Coun. Corrie DiManno also voiced strong opposition to such a move, but empathized with the financial hardships experienced by businesses with both COVID-19 and construction.
“But if we had to make some kind of financial break for any time we did a public works project in front of someone’s business or someone’s house, and they felt directly impacted, that would be a very dangerous precedent,” she said.
Coun. DiManno pointed out the $22.8 million Banff Refreshing project – which saw the redevelopment of Banff’s main tourist strip in 2007 – was so popular that Bear Street businesses wanted something similar to attract tourists.
“Bear Street is going to come with huge economic benefits, not tomorrow certainly, but in the future,” she said.
“You guys have had a double whammy, yes, but please, see the forest through the trees. It’s going to be a beautiful project.”
Redevelopment of the 200 block of Bear Street has been on the capital books for 28 years.
Construction is replacing aging water and sewer systems, adding planters, a self-irrigation system for about 80 trees, new streetlights and a pedestrian-friendly cobblestone street.
There will be no curbs or centre line, and the tile-slab surface aims to create an environment that envisions a better balance of the needs of pedestrians, cyclists, and low-speed motor vehicles.
The project is scheduled to be completed in July.
