Montreal

City's compensation for businesses impacted by construction not nearly enough, businesses say

Some business owners say $30,000 isn't enough curb the negative impact of construction on their streets.

Business owners say $30K per year will help boost morale, but doesn't cover all lost revenue

Elio Schiavi, owner of Restaurant Ferrari, says he lost more than $76K in the first year of construction on Bishop Street. (CBC)

It was hard for restaurateur Elio Schiavi to keep his composure as he described everything he's lost since a 42-month construction marathon started on Bishop Street.

On Wednesday, the City of Montreal announced it was launching a new compensation program to help businesses financially impacted by construction projects — up to a maximum of $30,000 per year. 

But for people like Schiavi, the owner of Ferrari Restaurant, that amount can't curb the negative impact of construction, which for his business, will continue until 2020.

He said the move boosts morale, but only makes a dent in his lost revenue — more than $76,000 in the first year of construction alone.

Work started in October 2016 on the stretch between de Maisonneuve Boulevard and Ste-Catherine Street as the STM is building a new ventilation station for the metro.

The 75-year-old says that, beyond the constant drain on his revenue, the construction is dramatically injuring his ability to sell his restaurant and retire.

Ferrari Restaurant is at the end of a blocked off sidewalk. Construction will continue until 2020. (CBC)

Now, he feels he doesn't have enough working years left in him to recuperate financially.

"I lost everything," he said.

He said that normally the summer revenue would help carry the restaurant through the winter, but that won't be the case this year since they're already in the red.

Many businesses on the street have already gone bankrupt — Kafein, Craft Grilled Cheese, Gourmet Burger and Mesa 14. Under the city's new program, they won't be able to claim lost revenue.

"To be fair, we should think of these guys too," he said.

The executive committee member in charge of economic and commercial development and government relations, Robert Beaudry, said that there weren't enough funds for that.

"We have to respect the capacity of the city of Montreal to pay," Beaudry​ said.

'Better than nothing' 

Merchants on St-Hubert Street have been operating in a construction zone since early July and for them, the compensation signals relief.

Francine Gallant, the manager Le Roi du Smoked Meat said that $30K is better than nothing, which is what businesses got in the past. (Radio-Canada)

Francine Gallant, the manager of 64-year-old restaurant Le Roi du Smoked Meat said they had to cut back on staff after construction started and that it's been hard to get deliveries.

"$30,000 is good. Better than nothing, like in the past," she said. "We're losing more than that, but for us, it's not bad."

Mike Parente, the director general of the SDC Plaza St-Hubert, a local merchants association, called the new program "a step in the right direction."

He said the amount will be sufficient for some, but not for others. Still, he's optimistic. 

"The message being sent that they support businesses," he added.

With files from Ainslie Maclellan and Radio-Canada