The Downtown Guelph Business Association got the go ahead to expand its boundary for the first time in 45 years Monday, but only just.
Guelph City Council voted 7-5 in favour of a boundary expansion that will add roughly 50 businesses to its roster and increase funding by approximately 20 per cent.
“It’s for the simple reason that we’re stronger together, it makes sense and now is the time,” DGBA Executive Director Marty Williams told council prior to the vote.
Members of the DGBA are subject to a special city levy, much like property tax, that sees owners of the building containing the businesses pay a levy of 0.39 per cent of the building’s assessed value.
For example, someone with a property valued at $1 million would pay $3,900 a year to be a member of the DGBA.
How – and if – that property owner disperses the levy between the businesses in their building is up to them.
There are currently 450 businesses in the DGBA boundary. The expansion will add about another 50.
The expansion will include the east side of Woolwich and Cardigan streets along the river, Cork and Northumberland streets west of Norfolk and part of Suffolk and Norwich streets.
The DGBA went to great lengths to contact every business owner in the new boundary to explain what was happening. It included delivering a booklet explaining the changes.
Williams said 16 businesses (23 per cent) in the new boundary opposed being part of the DGBA. Only seven of the existing DGBA members opposed the move.
“It’s a small expense that we think is rational,” Williams said, adding that right now a business on one side of the street might be a member and the business across the street isn’t.
“To bring 20 per cent more in means we can add, do more, better, do new things,” Williams said.
The DGBA could take a big hit when The Co-operators leaves downtown Guelph for its new location in the south end. The Co-operators currently accounts for 10 per cent of the DGBA tax levy.
Williams said in eight to 10 years the DGBA will be looking to extend south of the railway tracks that mark its southern border.
Councillor Dan Gibson, a member of the DGBA board, expressed concern over the timing, feeling that the city should wait for new federal legislation regarding taxation on small business before approving an expansion that will mean increased costs for some business owners.
Mayor Cam Guthrie also “struggled with this,” saying many see the municipality as the “last line of defence” against increased costs.
“I just don’t feel comfortable with this,” the Mayor said.
Other councillors said it was an obvious move and a municipal decision, not one that should be influenced by federal politics.
Coun. Lianne Piper said the businesses being absorbed into the DGBA have benefitted for years from the programming and other efforts of the DGBA and many of them welcome being included.
Coun. Cathy Downer said many of those who will be part of the new area have wanted to join for years “and we shouldn’t string them along.”
Voting in favour of the expanded boundary were councillors James Gordon, June Hofland, Phil Allt, Karl Wettstein, Mike Salisbury, Downer and Piper.
Voting against the new boundary were the Mayor and councillors Gibson, Bob Bell, Christine Billings and Andy Van Hellemond.
Councillor Mark MacKinnon, who owns part of a business in Downtown Guelph, abstained from the discussion and vote.
