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Small business support process in works

A move to give small, local start-up businesses a bit of a break by deferring parking and housing payments is one step closer to reality.

A move to give small, local start-up businesses a bit of a break by deferring parking and housing payments is one step closer to reality.

Banff’s politicians have given staff planners the green light to move ahead with drafting regulatory language as part of the Land Use Bylaw (LUB) review, but they want to see it apply to non-franchises.

If eventually passed by council, it would mean small, local businesses that are not part of a formula-based business can pay their parking and housing fees over time, rather than up front.

Councillor Leslie Taylor said it seems like a good idea to help make starting a small, local business easier, but her support for the final version will depend how small and local is defined.

“I’m small and local and I want to open a McDonald’s. Am I small and local?” she asked at a July 18 council meeting.

Senior planner Darren Enns said the Town’s planning team considers nationals and multinationals like McDonald’s different than smaller, local operations.

“Our belief is a multinational has more opportunities for outside financing and support than a smaller mom and pop business,” said Enns.

Councillor Stavros Karlos was the only voice of opposition.

“It is a risky thing to do for the municipality. The majority of small businesses fail within the first two to three years of operation,” he said. “The current system has worked fine up to date. This puts the Town of Banff at risk of not getting those payments.”

Since the inclusion of housing and parking requirements in the existing LUB, the review team has continually received feedback about the effect of these payments on new businesses. They say new commercial ventures can be stifled by what is viewed as prohibitive housing and parking costs, especially start-ups with limited cash reserves and which typically lease smaller spaces.

This, they say, has a trickle-up effect, with commercial property owners struggling to recruit tenants, and resulting vacant commercial units not reflecting well on the visitor experience.

Therefore, the review team recommends introducing a deferred payment system for small, local businesses who are going through the change-of-use process.

The deferment would be limited to resident-owned, independent businesses, and only for commercial retails units less than 1,500 square feet in floor area.

Officials say businesses talking about a change of use have often walked away because the parking and housing requirements make it “not economically feasible”.

“I think it could be the primary municipal obstacle,” said Enns. “It’s an obstacle a lot of people aren’t prepared for and it does inhibit them.”

Lawyer Eric Harvie, a spokesman for several Banff businesses, asked council to send all housing-related issues being considered in the LUB to the working group.

He said the cost per bedroom for a change of use application is “dramatically prohibitive”.

“It could be linked to the franchisation of uses because they have deeper pockets,” he said.

“I think the big picture has to be discussed around the projects.”

Parking fees are earmarked for new capital projects related to parking, while housing fees currently go to Banff Housing Corporation’s capital budget.


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