Struggling St. John's businesses ask council to 'go deep' looking for other savings
Angry over high taxes imposed by the City of St. John's, a group of business owners gathered for a news conference Friday to demand tax relief.
They say the city's 2016 budget is anti-growth and is hitting them hard, and they are joining forces to ask for a rollback.
"The commercial tax on the building we lease has doubled with this budget and our landlord will have no choice but to pass that tax on us, the tenant," said Rocket Bakery owner Kelly Mansell.
Having our taxes double with no warning whatsoever was horrifying.- Bob Hallett
"This is not the time to kick the legs out from under us, or the other 275 businesses that are helping keep our city's core vibrant and a place that tourists want to visit."
Bob Hallett, the owner of Erin's Pub, Tavola and Kilbride Music, said he employs 15 people.
"We knew it would be a hard year, we'd struggle to make money and be profitable. We planned for that," he said.
"But having our taxes double with no warning whatsoever was horrifying."
Meanwhile, Brenda O'Reilly, the owner of YellowBelly Brewery and O'Reilly's Pub, said businesses are hurting.
She said her 2016 taxes have gone up by $12,000.
"I'm going to have to cut costs … which mean job cuts," she said. "The only area where we have control over is employment."
Melanie Caines owns Nova Yoga Studio, where taxes have increased by 20 per cent, or $2,000.
"The only way to make council listen is to see how many people are affected," she said.
"I think people on council feel what's the big deal, no one's mad, no one's upset … but a lot of people have a problem with this."
Joining forces
Business owners were joined by representatives from Downtown St. John's, the Restaurant Association of Newfoundland and Labrador, Building Owners and Managers Association of Newfoundland and Labrador, Destination St. John's, and the George Street Association.
The organizations want city hall to roll back the tax hikes, and instead reduce spending to bring in more money.
"Essentially what we're asking the city to to is go into a deep dive into their budget," said Des Whelan, chair of the St. John's Board of Trade.
"They have to go deep. They have to look at all of the things that they do, and they have to decide what are our core services."
Without tax relief, he said businesses will close.
