Marda Loop companies struggle with construction amid declining revenues

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Cameron Fraser reached his wits end in February.

For months, he and other business owners have felt like they've been left out in the wind as construction continues outside the Marda Loop restaurant Fraser & Fig.

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His business revenue has dropped by 20 percent. Some said they earned 40-50 percent less than usual. One store, Apt 22 Boutique, completely cut costs and closed permanently last November, with its owner telling local media that construction was primarily responsible for the decision.

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The Marda Loop Main Streets project has been planned for years, but Fraser said there has been minimal communication from the city surrounding the weekly operations and how they will affect the area. With little notice, ever-changing roads and detours have become a part of everyday life.

“No one knew what was going on,” he said.

On Feb. 5, he and about two dozen Marda Loop owners wrote a letter to the city council asking for help. Moments later, Frazier and several business owners were across the table from Gondek at Merchants in Marda Loop, discussing the situation.

About a month later, a $5,000 lifeline for a Marda Loop business affected by construction received unanimous approval from the council after Frazier and his business were presented to the council on the mayor's recommendation. The funding will be used as a pilot to study how such a program could be implemented sustainably — the first of its kind in Western Canada.

“The best news of all of this is that the mayor listened to us,” Frazier said. Businesses in Bridgeland are also eligible for grants during the construction of their main streets project.

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Public works underway at 33rd and 34th avenues SW in Marda Loop, a can't-miss for drivers entering the Crowchild Highway neighborhood, will soon give way to a community transformation known as the Main Streets Project — a revitalization that local business owners say is needed, but and also goes deep into their bottom.

Once completed, the area will feature new landscaping, wider bike lanes, more seating and new gathering areas. Construction is planned to be completed in 2025.

Businesses in Marda Loop, a short drive south of downtown, rely heavily on Calgarians who commute to the neighborhood. When WOW Holdings CEO Andrew Kim opened a WOW bakery in the area, management estimated that about 80 percent of the traffic came from people driving by and stopping in the neighborhood. He said the store's revenue has dropped by 50 percent since construction began.

Parking has become a scarce commodity in recent months, and traffic is a feature of daily life for visitors and visitors to the area.

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The $5,000 grant is a “good first step,” but not enough

Boogie's Burgers, a local burger joint on 33rd Avenue SW, was cordoned off recently as city workers excavated the front of the store. After utilities are completed and sidewalk repair begins, the plywood will serve as the entrance to the restaurant while the sidewalk is torn up.

Although appreciated, the $5,000 fee would have a negligible impact on the business's bottom line, said Brent de Decker, general manager of Boogie's Burgers. Boogie's sales are down about 15 percent since construction began, he said.

“This is a very small drop in the bucket for us,” he said. Like some of his peers, he proposed reducing business property taxes during construction.

The city has evaluated that option, said Graham Guerillo, manager of community and business relations for the City of Calgary, but since landlords would be the direct beneficiaries, the discount may not end up in the pockets of business owners.

Instead, Calgary took inspiration from Montreal's construction assistance program, developed in 2018, which offers one-time grants of $5,000 to businesses affected by construction. Montreal will also reimburse businesses up to $40,000 with an actual amount based on the construction's impact on profits. (The Montreal program is the only construction-assistance program in Canada.)

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The city believed the $5,000 was the most difficult option for the business and allowed it to act quickly, Guerillo said.

“What we feel is that we want to respond to those that are under construction this year,” he said. “Let's take something like Montreal as a starting point and learn from it and spend the next few months attracting businesses … so businesses can benefit immediately.”

Andrew Senna, senior policy analyst for Alberta at the Canadian Federation of Independent Business (CFIB), praised the city for implementing the grant funding. The Marda Loop businesses consulted with the CFIB when they wrote to the city.

“The grant program is a good first step, but it shouldn't go that far,” Senna said.

'People are trying': The city's involvement was praised

The city created a new division two years ago, which Guerillo will lead in part, to support businesses through major construction projects. Guerillo said the city has created community “connections” that will act as points of access for businesses during construction. The city has assigned one liaison to Marda Loop and recently hired another.

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Both De Decker and Fraser have seen an increase in communication with the city and builders since the issue was brought up earlier this winter. The Marda Loop Business Improvement Association (BIA) is also gearing up to air television ads encouraging Calgarians to shop local, and hopes the city's upcoming efforts will attract more customers to the area.

Even so, businesses expect revenues to remain low until construction is completed.

But after seeing the city's efforts, Frazier's sour mood toward the city has recently lifted, giving him optimism as the neighborhood undergoes the changes he believes it ultimately needs.

“People are trying. That's how I see it now,” Frazier said. “If you had talked to me a month and a half ago, I would have said, 'I hate everything.'”

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