Downtown Oakville BIA looking for more support from town as Lakeshore construction looms

Town's downtown mitigation strategy offers more than $1 million to ease construction impact on business community

Insidehalton.com
September 12, 2018
David Lee

The Downtown Oakville BIA is thanking the town for offering up more than $1 million to help mitigate the impact of construction along Lakeshore Road but says much more is needed.

Sharlene Plewman, executive director of the Downtown Oakville BIA, weighed in on the town’s downtown mitigation strategy, which was unveiled during a meeting of the planning and development council on Monday, Sept. 10.

Major construction affecting the downtown commercial district will occur along the Lakeshore Road corridor in 2019 and 2020.

The mitigation strategy is intended to offset the negative impacts of this construction, through various initiatives, which will cost approximately $1 million for the 2018-2020 period.

“I think there is recognition through the strategy that the impact of the construction will be tough for businesses. ... It also recognizes we do not have unlimited funds to provide mitigation initiatives.”

-- Dorothy St. George, director of the town’s economic development department
“I think there is recognition through the strategy that the impact of the construction will be tough for businesses. The strategy addresses the feedback we received from stakeholders with regard to mitigation,” said Dorothy St. George, director of the town’s economic development department.

“It also recognizes we do not have unlimited funds to provide mitigation initiatives.”

St. George noted the strategy, which was put together after examining the policies of several communities -- including Kingston, Waterloo, Kitchener, Cambridge, London, Brampton, Guelph and Markham -- does not include financial mitigation such as tax breaks for businesses.

Town staff noted such measures are prohibited under the Municipal Act.

St. George said what the town is doing is making sure the Lakeshore reconstruction-streetscape project is done quickly with minimal disruption, through the prequalification of contractors for construction tender; extended hours of operation for the construction; and an early completion bonus.

She said there would also be construction phasing, with construction taking place from April to mid-November in 2019, leaving the Christmas period construction-free for shopping.

The construction will then recommence in April 2020 and be completed by mid-November.

“Also to minimize disruption, there will be signage and way-finding, maintenance of a clean work site, co-ordinated pedestrian and vehicle access for customers, employees and deliveries,” said St. George.

“To address issues quickly, there will be key points of contact through the construction contractor, engineering and liaison staff.”

Town staff also discussed economic measures such as free parking, which downtown business owners say would attract customers.

While St. George did not recommend providing free parking downtown during the entire construction period, noting this would cost the town about $3 million, she did recommend first-hour free parking with the Honk mobile parking-payment app.

She said this option provides a discount to everyone who comes downtown, giving them that first hour of parking free when they use the app.

This option would cost approximately $272,000 for the April 2019 to November 2020 period.

St. George said approximately 75 parking spots will be impacted by the Lakeshore reconstruction in each phase of the project.

To compensate, the town added 30 new permanent parking spots on Navy Street and Water Street in 2018.

St. George said another 66 parking spots are being explored in various locations for future use, and approximately 50 temporary parking spots will be created at the site of the former fire-hall, on Navy Street.

Other mitigation measures included fee waivers for patio and outdoor displays in the downtown area during the pre-construction and construction phases; the introduction of the Skip the Dishes program at various downtown restaurants; and a commitment by the town to continue to work with the BIA on a revised events plan as the construction timeline is determined, to maintain as many downtown events as possible to attract people during the construction period.

Events will also be planned to celebrate milestone achievements for the construction period.

These mitigation measures are expected to cost $182,000 in 2018, $436,000 in 2019 and $421,000 in 2020, for a total of $1,039,000.

Plewman applauded the town for thinking about mitigation but said $3 million for free parking during the entire construction period really is a small price to pay to preserve the downtown business community.

“Having a downtown that has zero businesses or even only 50 per cent businesses would be such a determent in the long term that I think we are being short-sighted to get caught up in $3 million,” she said.

“We have over $350 million in assessed value in the downtown core, which will drastically drop if it is vacant at the end of this project.”

Plewman also called for clarification on where the construction workers will be parking, noting that every time there is construction downtown the workers arrive in the morning and take the parking in front of local businesses for the day.

She called for it to be written into the contract that the construction workers have to park offsite and be shuttled in at the cost of the construction firm.

Plewman questioned the lack of financial mitigation, noting that although the Municipal Act may prevent tax breaks for businesses, other types of assistance, such as reducing costs to the BIA so it could focus more on marketing, should be considered.

She also called for the mitigation measures to continue following the completion of construction, to get people to come back to the downtown.

Council ultimately voted unanimously to pass the downtown mitigation strategy with an additional $315,000 allocated to provide free parking on Saturdays during the construction period.

The funding required in 2019 and 2020 must still be approved by the 2019 capital budget process.

In a statement to the Oakville Beaver, mayoral candidate Julia Hanna said she supports the BIA in asking for additional support.

She took particular aim at the $30,000 in the mitigation strategy that is allocated for marketing and communications in 2019.

“The thought of offering $30,000 as an initial starting point for marketing makes it evident, beyond a doubt, that downtown Oakville is not a priority to our mayor, nor is supporting our retailers in the downtown core,” she said.

Oakville Mayor Rob Burton emphasized during the meeting this is an initial set of mitigation measures.

“I know that council and staff are committed to monitoring and adjusting whatever we do, to make sure we do the best job we can,” he said.

“I also recognize it is important to respect the taxpayer and to make sure the costs that (we) are contemplating here are duly vetted by the budget committee. There is time. The budget committee will be taking public delegations and submissions by BIA members and BIA boards, and whoever, for more different or extra measures, in January.”