The Canadian Federation of Independent Business (CFIB) says its members want municipalities to provide some kind of relief from the negative effects of lengthy construction projects.

The organization issued an open letter to all mayors and councillors ahead of the Federation of Canadian Municipalities (FCM) meeting in Calgary last week.

CFIB is careful to point out that its members are supportive of the role played by major infrastructure projects in enhancing urban development, but adds that these works can be highly disruptive to small businesses.

The federation’s 2018 report, Paving a Smoother Road, found that between 2012 and 2017, 41% of Canadian small businesses were disrupted by local construction projects. Of those, 65,000 small businesses were forced to borrow money, relocate, or close.  

“It is therefore not surprising,” CFIB said, “that 68% of small businesses believe they should be financially compensated when a lengthy public construction project significantly affects their operations.”

The group argues that if direct compensation is not feasible, municipalities should consider offering tax holidays (i.e., temporarily waive property taxes for affected businesses).

It also said that municipalities should strive for better planning and communication with the local businesses ahead of construction projects, and should put measures in place that penalize construction work that goes beyond its expected end date.