Montreal to compensate businesses affected by construction

The City of Montreal has announced it will be awarding merchants direct financial compensation for lost revenues due to road work.

Retail shops, restaurants and others could receive up to $30,000 a year in financial aid. City officials are touting it as a first of its kind in Canada.

“This is historic,” said Robert Beaudry, executive committee member of City of Montreal.

The city has set aside a budget of $25 million over the next four years to help businesses affected by public work projects on the Island of Montreal.

There is also $16.8 million to help organizations that work with businesses.

Robert Beaudry, executive committee member for the City of Montreal, talks about the compensation program for businesses affected by roadwork.


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The compensation program is retroactive to Jan. 1, 2016, for infrastructure work, including rebuilding a water and sewage network, that lasts six months or more.

It will also apply retroactively to Sept. 21, 2017, for work commissioned by the STM, as well as all other work lasting three or more years.

Merchants will have to apply for compensation with the city and prove that revenue was lost during construction.

The first 15 per cent of a company’s gross revenues will not covered by the compensation program; it will be based on the remaining 85 per cent.

Merchants on Saint-Paul Street in Old Montreal, Saint-Denis Street, Sainte-Catherine Street West, Gouin Street West and Bishop Street will likely be eligible to receive money.

Restaurant Ferrari owner Elio Schiavi says his business has been suffering for more than two years due to work that was ordered by the STM.

He told Global News he was “mad as hell” with the construction and claims he has lost tens of thousands of dollars.

The program will be introduced at the next council meeting on Nov. 19 and is expected to be adopted in December.

The city will identify the areas applicable for compensation with the goal of opening the application process in January and delivering cheques by March.

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© 2018 Global News, a division of Corus Entertainment Inc.

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