Merchants on Booth and Somerset streets say the Somerset Street Chinatown BIA - which has been without an executive director for several months - failed to implement the same measures used by other local business associations to minimize the inevitable drop-off in customers that comes with road reconstruction.
Steps as simple as signage and communication are lacking, merchants say, noting at least one business has been forced to close its doors.
The responsibility, says one business owner, lies on the shoulders of the BIA.
"I kept wanting to hear something from the BIA" after construction started, said Mario de Marinis, owner of Somerset Travel Agency. "Nothing was heard. No communication at all."
Signs advertising that merchants remained open for business were too small and, in some cases, ended up behind larger construction signs, he said. As a result, foot traffic dropped off notably in the area, he added, causing hardships for nearly 30 businesses on Preston and Booth streets.
His own business, which has been around for 50 years, is an example of that, he said.
"Even after the problems began in 2000, economic disasters, strikes, everything else, we were never in a six-month position ... (of) losing money," he said. "We lost money in this last six-month period."
A letter, signed by 29 BIA members, said merchants are "totally dissatisfied with the board's performance" in this situation. But there are other issues causing frustration as well, Mr. de Marinis said.
"There is no executive director, which is very important in an organization like this. He can carry on the wishes of the board. They had one for a couple of months, but he resigned."
Peter So, chair of the Somerset BIA board, countered that representatives of the organization went door-to-door and spoke with merchants during construction.
He said he was similarly appalled by the initial signage that indicated merchants remained open for business, and asked the construction company to make them more visible, as some were inadvertently obscured from view. The workers have complied, he noted.
The organization also offered free advertising space on its website to the affected merchants, he said.
"I have talked to individual stores. Most of them, they tell me the business is OK. Not as good as it used to be, but it's survivable," Mr. So said.
"Maybe two or three (are) below water, but they are new and didn't have a lot of clientele before this. (The construction) is not helping them at all; this we understand."
But he emphasized the problems created by the $6.38-million project to upgrade sewer and utility lines, as well as resurface the road and add a new pathway, are temporary.
"Construction has to be done ... it will increase traffic, and when you increase traffic you increase business. That's our future."
Former executive director Grace Xin was with the BIA for three years and left because she was looking to do something new, he said. The person who replaced her "didn't work out," he added, and had to be let go.
The board is seeking to fill the position, but the problem is salary. Other local BIAs pay $60,000 for an executive director position, which he said is prohibitively expensive on the $171,900 Somerset BIA budget.
Ms. Xin was generous enough to provide some of her services for free, but he said that can't be counted on for future executive directors.
As such, the BIA will seek to increase its levy at its annual general meeting on Nov. 28 by polling its members. The final numbers will need to be approved by the city, but first it is necessary to seek the support of the merchants, he said.
The levy varies by business, but Mr. So said he pays just under $1 a square foot for his own shop, So Good Restaurant.
"There are only two ways we can (solve the problem): increase the levy, then people complain, or maintain the levy, and you have less service," he said.
"All the board members are trying to help the street as much as they can. But don't forget they all volunteer their time to try to do good things for the street. I can't ask them to work full-time day to day."
EXCERPTS FROM THE LETTER
"We, the merchants, professionals and restauranteurs (sic) who pay annual exorbitant fees to the Somerset Street Chinatown BIA are totally dissatisfied with the board's performance. We simply have no confidence in your commitment to our needs, particularly at this crucial time when Somerset Street (between Booth and Preston streets) is incessantly being torn up for major infrastructure maintenance.
Where is the BIA in all of this? The board members have never been heard from nor have they been seen during this construction period.
[...]You are probably asking yourselves what could have been done or should be done? As a bare minimum, you should have had erected visually appealing signs at Booth, Rochester and Preston streets listing the varied businesses and inviting the public to still support us even though it may cause them some inconvenience when parking.
You should have also taken out ads in the local papers explaining our plight and re-iterating that we are still open to personally serve them because most of the small businesses have the owners on site."
BIA BUDGETS, 2011
Business improvement areas are created by city bylaws, and city council must approve all annual budgets for business improvement areas, according to the Municipal Act.
BIAs are funded through a levy on all rateable property in the area within a prescribed business property class. The city collects these levies on behalf of the BIAs.
Forecast revenues for Ottawa's BIAs in 2011 are:
Downtown Rideau: $743,155
Bank Street: $711,617
Sparks Street: $516,800
Preston Street: $484,892
Sparks Street Mall Authority: $423,384
Westboro Village: $396,500
Vanier: $349,090
ByWard Market: $319,000
Bells Corners: $268,950
Glebe: $237,000
Barrhaven: $226,554
Wellington West: $192,650
Somerset Chinatown: $171,900
Manotick: $165,810
Heart of Orleans: $145,450
Carp Road Corridor: $100,000
Somerset Village: $10,000
Carp: $9,800
Source: City of Ottawa
