Canada/Major Projects: Montreal to streamline its merchant assistance program

Faced with the program's lack of popularity and the high number of rejected claims, Montreal is promising to simplify access to its assistance program for merchants affected by major work, which has been in existence since 2018, but for which less than a quarter of the budget has been distributed.

Over the past four years, 419 claims have been received by the City of Montreal under its financial assistance program for establishments located in an area affected by major construction. Only 189 of these claims, or 45%, have been accepted.

We can see that it is still difficult [...] to access this program," conceded Luc Rabouin, who is responsible for economic and commercial development in the Plante administration.

However, there is no lack of need.

For six months, Alexandra Grenier's bagel store was surrounded by construction in Griffintown. It was a huge construction site, a lot of equipment, it was barricaded everywhere," said the owner of Bagels le Trou.

Grenier's business was surrounded to the point that her sales were affected, but she was denied access to the compensation program.

"I would have expected at least a $10,000 package, which wouldn't have erased the impact I had, but at least it would have told me that the City doesn't care about businesses that suffer during construction."

- A quote from Alexandra Grenier, a business owner whose claim was rejected

Opposition calls it a failure

However, out of a total envelope of $26.2 million, barely $5.8 million made it to the merchants. For the Official Opposition, this is a clear and major failure.

First, the low turnout. Secondly, given the rejection rate of the requests that were made. And above all, given the amounts that have been paid, commented Julien Hénault-Ratelle, responsible for economic development for the official opposition.

It is therefore in this context that the City - which was already questioning in 2019 about the lack of popularity of its program - has decided to further simplify the application process for merchants, starting early next year.

A merchant who is faced with a construction site that lasts for six months is going to be able to make a simplified application. We will send him a lump sum to help him out," assured Luc Rabouin.

This lump sum could reach a few thousand dollars and then be increased if losses related to the construction site are indeed proven.

The program, which is retroactive to January 1, 2016 for work sites led by the City and September 21, 2017 for work sites led by the STM, affects about forty arteries in the metropolis (New Window) that have undergone work.

Source: ici.radio-canada.ca