BANFF – The Town of Banff will generate an estimated $23,000 in additional revenue by going to a discounted market-based rate for downtown sidewalk seating and outdoor merchandising permits.
After lengthy discussions in previous meetings, council passed three readings of an amended fees and charges bylaw on April 11. Beyond sidewalk seating and outdoor retailing, there were no other fee changes in the bylaw.
Town of Banff officials say estimated revenues are $120,000 for sidewalk seating applications in 2022, which is up from $99,500 last year, while permit revenue for outdoor merchandising is expected to be $6,400 compared to $3,200 in 2021.
“We’ve spent about five-and-a-half hours on this topic, so I would ask that when we do speak it’s on new information,” said Mayor Corrie DiManno.
The new rates approved in the fees and charges bylaw reflect a discounted market rate of $8 per square foot for full service and table service sidewalk seating eating and drinking establishments and $1.50 per square foot for counter service such as a coffee shop.
Outdoor merchandising rates reflect a discounted market rate of $3 per square foot. However, based on advice from administration, council also added an option of a $210 flat fee, or which ever is greater, to cover administrative costs.
“Some very small outdoor merchandising areas exist so if we were to charge those areas at the very small footprint, we might not capture the administrative review in there,” said Emma Sanborn, development planner for the Town of Banff.
Up until now, Banff’s sidewalk seating fees have been based on the number of tables and chairs under a differential rate for full service patios like licensed restaurants versus a smaller-scale counter service patio such as a coffee shop.
The Town of Banff’s assessor provided an overview of market lease rates for at-grade street-facing businesses throughout the downtown core, coming up with an average market value of $74 per square foot.
The market rate is an option to charge for space in the public realm based on the average market rate for interior commercial leases across town, but unlike interior commercial space, outdoor sidewalk seating is seasonal.
Weather and seasonal discounts were applied to the $74 per square foot market rate provided by the assessor, with additional reductions provided because businesses are still recovering from the fallout of the COVID-19 pandemic.
The 2023 fees are expected to be much higher, with $14 per square foot for full service and $4 per square foot for counter service. As it stands now, retailers would be $3 per square foot. These are not yet included in the fees and charges bylaw.
