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Earls to Launch New Restaurant Concept as Chain Expands Locations [Interview]

Rendering of Earls at The Amazing Brentwood (Image: Earls Restaurant Group)

Canadian restaurant brand Earls has some major plans coming up for the Burnaby, BC market with growth plans as well for other markets.

Sharilyn Mason, the company’s Chief Development Officer, confirmed the brand will be opening a Birdies Eats & Drinks restaurant in June at 3850 Lougheed Highway, which is the former spot of Earls Bridge Park, which closed recently after 26 years.

That closure was to facilitate the opening of a new location at The Amazing Brentwood, which is located close to its former location.

Birdies Eats & Drinks (Image: Earls Restaurants Ltd)

Earls Restaurants Ltd. is a family-owned operation started by Leroy Earl (Bus) Fuller and his son Stan Fuller in 1982 with its first restaurant in Edmonton. Earls has since grown to become one of the most successful, family-owned independent restaurant groups in North America with 68 locations across Canada (58) and the US (10).

The brand is from British Columbia to Ontario with headquarters in Vancouver.

Sharilyn Mason

Mason said in the past year Earls has opened two new restaurants – across from CF Sherway Gardens in Toronto and in downtown Winnipeg.

The Brentwood location will open February 16.

“Being a 40-year-old company, how restaurant deals were done and the types of projects that we looked at 40 years ago, or 25 years ago, they were traditionally path locations. As we’ve seen projects come online and super regional shopping centres, we’re taking the opportunity to really upgrade Earls real estate to get us closer and more connected to transit-oriented centres where that key concentration of density is,” said Mason.

“We’ve relocated a number of stores over the past few years and they’re quite successful in terms of growing our store volumes. The reason we chose Amazing Brentwood is for all of those reasons. It’s transit-oriented. There’s a high concentration of residential density along with some office components around there. We’ve loved being part of the Plaza and if you will it’s going to kind of be the downtown of Burnaby. Those are the dynamics that we loved about it. And just the ease of our guests being able to access us.”

Rendering of Earls at The Amazing Brentwood (Image: Earls Restaurant Group)

The Amazing Brentwood, a co-venture by Shape Properties, Healthcare of Ontario Pension, and L Catterton Real Estate, is one of British Columbia’s largest master-planned, mixed-use developments, says the project on its website.

“Located in Burnaby’s Brentwood neighbourhood, it will feature world-class shops, restaurants, public plazas, entertainment, and 6,000+ new homes. With its stunning indoor/outdoor public space and design, size and scale, connectivity, and diverse and compelling tenant mix, The Amazing Brentwood will be a one-of-a-kind urban gathering place that reflects the vibe of Metro Vancouver’s global community. The Amazing Brentwood’s phased opening begins now,” it says.

“The Amazing Brentwood is transforming into an urban gathering place that’s going to change the way people experience shopping, dining and entertainment. A global place that captures the heartbeat of humanity.”

Earls said the new location is designed with the Burnaby guest in mind and will be located on the plaza level of The Amazing Brentwood just steps from the Skytrain station. It is near the plaza’s stunning water feature and bustling open-air space. It includes a lounge, dining room, island bar and a patio that will extend out onto the plaza. It will also have a pick-up window for pick-up orders.

The exterior from Queensway + North Queen Street of the new Earls Sherway (CNW Group/Earls Restaurant Group)

The Earls internal design team, consisting of Lead Designer Kimberly Hume and Creative Director Elly Chronakis, developed the “Modern Design meets Earthy Comfort” style of Earls Brentwood. 

“Inspired by The Amazing Brentwood’s timeless aesthetic and open-air shopping concept, Earls Brentwood utilizes warm elemental materials, lush greenery, and ample natural light to create a stylish and welcoming space where indoors and outdoors seamlessly connect. As part of the company’s ongoing commitment to supporting local artists, the walls of Earls Brentwood will feature collections from both Burnaby and BC based artists Rande Cook, Tafui, and Dina Gonzales,” says the company. 

“Earls newest BC restaurant will beautifully showcase the brand’s commitment to creating individually compelling restaurants.”

“We wanted this Earls location to truly reflect the diversity, energy and lifestyle of the Burnaby guest,” said Kristin Vekteris, Chief Brand Officer “Burnaby is a neighbourhood brimming with life, and many young families, students, and millennials call Burnaby, and The Amazing Brentwood, home. This location is designed with them in mind.” 

When asked if more Birdies are in the Earls future, Mason replied: “Obviously we’re in the business of multi-unit operations. If my money was put on it, I would say the likelihood is high.”

Renovated Earls Restaurant at 150 King Street West in Toronto (Image: BUILD IT By Design)
Renovated Earls Restaurant at 150 King Street West in Toronto (Image: BUILD IT By Design)

Mason said the company is committed to six new restaurant openings for the Earls brand in the next 18 months – three are in Toronto, one in Calgary, one in Miami and the Brentwood location.

“We’ve had strong results coming out of the pandemic and people are going out and they are consuming. We’re seeing that in our sales. We’re also seeing that in our average guest cheque,” she said. 

Continuing their commitment to compelling restaurant designs tailored to each neighbourhood, Earls Test Kitchen and Earls Robson will also be undergoing renovations in 2023 to further enhance the individual interiors into more lively, comfortable and compelling guest experiences.

“If you’ve seen our new Earls locations we’ve really elevated our design and our menu offerings,” said Mason. 

Canadians Should be Checking Receipts at the Grocery Store as Errors are Common [Op-Ed]

Price Check, Aisle 7

If you’re not checking your grocery receipts for errors before leaving the store, chances are you’re overpaying for some of your groceries, especially for discounted items.

In the U.S., some states have tried to put a number to the problem and look into receipt discrepancies. The North Carolina Department of Agriculture and Consumer Services’ Standards Division collected fines from dozens of Walmart stores due to pricing errors over the course of 2022. The average fine was anywhere between $40,000 to $50,000 USD. The agency has found about 26% of price scanner inspections failures. The technology itself was an issue, not human error. The department also detected that in roughly 10% of cases, at least one item was overcharged for one reason or another. Ten per cent!

Aldi in Australia recently got into some hot water when consumers took to Facebook to share easy-to-spot errors the grocer was committing. Worse, errors were repetitive. In the same country, at Coles Supermarkets, it was revealed that an automatic discount was issued to regular shoppers who were mistakenly charged full price on items that were previously discounted. The chain even spontaneously printed the word “apology” on receipts.

In Canada, few know how significant this problem is, but mistakes on grocery receipts do certainly happen, and they happen for a variety of reasons. For one, cashiers or other employees may accidentally input the wrong item or price into the system. Also, the store’s technical equipment may malfunction, leading to incorrect pricing or item information, especially on items that are either volume discounted or even “enjoy tonight” deals.

Price discrepancies are also quite frequent. Stores may update their pricing regularly, especially these days, leading to discrepancies between the advertised price and the actual price charged at the check out. Scanning errors may also occur when an item can be double scanned. Another common mistake will occur even before you show up at the register. While shopping, you may think you’re reaching for an item on sale but end up with a higher priced item because a clerk misplaced the product while stocking shelves.

Mistakes on receipts can happen for countless reasons, but some people will never check receipts. We believe anywhere from 35 to 45% of Canadians rarely, if ever, verify grocery receipts for errors, according to estimates. We believe about 30% of consumers will always check. Many don’t bother because they feel rushed or can’t pay attention for one reason or another. Some opt to use self-checkouts for that exact reason. But if you do, you’re not immune to technical problems and need to remember prices you noticed while roaming the aisles. The scanner can scan the wrong code or may forget a promotional code. The onus is on you to be extra careful.

Consumers who are more vigilant and check for mistakes are likely saving more money. But as a shopper in Canada, you do have rights if you see a mistake at the grocery store which ends up costing you more. Many years ago, the Retail Council of Canada along with the Canadian Federation of Independent Grocers instituted a national scanner price voluntary code. Consumers are entitled to a discount of up to $10 for each scanning error at participating food retailers, including Walmart, Sobeys, Loblaws, Costco, and Metro. In the province of Quebec, it’s the law. Grocers must give the discount. But elsewhere in the country, retailers should comply with the code and give you a discount, and retailers are obligated to display a description of your rights as a shopper at check out areas.

The pressure of exiting the store as soon as possible coupled with bagging items yourself means that errors can be overlooked. If you see a mistake, don’t be afraid to alert a clerk or manager. And don’t wait until you get home. Few will go back or will forget about it. With food prices the way they are these days, anyone being held up will sympathize, no doubt.

Retailer Bankruptcies Not as High as Expected in Canada Since Pandemic, but Uncertainty Persists: Insolvency Insider

Former H&M on Queen Street (Image: Dustin Fuhs)

The tsunami of business creditor protection filings expected to take place as a result of the COVID pandemic simply hasn’t happened but more of them are likely to materialize this year with the end of government support programs. 

Dina Milivojevic, Editor of Insolvency Insider, a national publication that covers the latest insolvency filings and court cases, said there has been a small increase in filings from last year which isn’t surprising given all of the COVID relief is now over.

“I think people expected to see, on an overall general level, even more filings than we’re seeing now,” she said. “So I think the expectation from the insolvency community is that we’ll continue to see those numbers rise and that’s born out in a survey that we recently put out to our readers just on a general basis – not industry specific.

Tenant Termination (Image: Dustin Fuhs)

“Pre-pandemic we had 60 CCAA’s (Companies’ Creditors Arrangement Act) and over the pandemic we’ve had 26 in 2020 and then 38 in 2021 and we asked whether our audience thought there would be more in 2022 and everybody, the vast majority, over 90 per cent, predicted that we’d more CCAA filings in the coming year.

“The perception industry wide is that the numbers are still pretty low and that they will continue to rise. Who knows what will happen given how low they’ve been? It seems like people are making an out and out filing formally. At least in the retail sector. Retail hasn’t been one of the hardest hit industries surprisingly. Construction has been really hard hit. Real estate has been really hard hit and that’s mostly due to the fact that there have been a lot of supply chain issues, the interest rates, there isn’t enough labour, etc, etc. We’ve seen quite a few filings in the real estate and the construction sectors but not that many in the retail sector.”

Milivojevic said one of the drivers for the lower count for retail is that stores are “rationalizing” rather than filing for formal insolvency.

“And so probably a lot of shops are closing down but maybe the numbers aren’t being borne out in the number of insolvencies because owners are taking preventative measures to close before going insolvent. One recent example that I’ve seen is that H&M is closing its second retail store in downtown Toronto.

Victoria’s Secret Pink at CF Toronto Eaton Centre Closed to relocate inside Victoria’s Secret across the hall (Image: Dustin Fuhs)

“So it looks like maybe that stores are taking steps. Branches of large chains are closing down some of their sites to save money and rationalize the business rather than having to formally file. That could be one of the reasons why.”

Dina Milivojevic

Milivojevic said consumer spending will likely not be as high this year as the retail sector would hope due to the challenges in the economy.

“That will definitely impact the number of filings going forward,” she said.

She said the stats are showing more bankruptcies and CCAA’s with smaller companies which isn’t surprising, based on the economy.

“The larger companies may have more saved up to allow them to survive through these hard times but we are seeing some of the bigger players shut down some stores,” she added.

“Over COVID, we definitely saw some issues pertaining to tenants, retail tenants, seeking rent abatements or commercial tenants seeking rent abatements. So for a period of time landlords and tenants were entering into forbearance agreements and things like that and that was part of the reason why they may not have gone under because the landlords didn’t want totally empty shopping centres after the pandemic ended. So they were a little more willing to enter into forbearance style agreements with their tenants. But now I think they’re getting a little bit more aggressive and expecting payment regularly, maybe not on discounted terms anymore.

“That may lead to more filings going forward too if the tenants aren’t able to pay their rents.”

According to the Office of the Superintendent of Bankruptcy, business insolvencies for the 12‑month period ending November 30, 2022 , increased by 37.8 per cent compared with the 12‑month period ending November 30, 2021. The sectors that registered the biggest decrease in the number of insolvencies were mining and oil and gas extraction, and finance and insurance. Accommodation and food services, and construction registered the biggest increases in the number of insolvencies.

Video Interview: How Red Tape Is Strangling Canadian Small Businesses

Video Interview: How Red Tape Is Strangling Canadian Small Businesses

Laura Jones, Executive Vice President of the Canadian Federation of Independent Business, discusses the national organization’s Red Tape Awareness Week.

Jones talks about the impact of red tape on businesses across the country and why it’s so important to their bottom line.

The Video Interview Series by Retail Insider is available on YouTube.

Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

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Canadian Retail News From Around The Web For January 30th, 2023

Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.

Italian Grocery-Restaurant Concept Lina’s Prepares to Open 15,000 sq ft Location in Calgary’s Inglewood [Photos/Interview]

Lina's

Calgary chain Lina’s is building a unique grocery store and dining establishment in the Inglewood neighbourhood based on the concept of an Italian public square or marketplace.

The concept, which is opening soon, is the fourth location for Lina’s Italian Market in Calgary.

Lina’s Italian Piazza will open in 15,000 square feet of space previously occupied by Bite Grocer in the Atlantic Avenue Art Block Building in the trendy and vibrant inner-city community.

Matthew Rai, General Manager of Lina’s said the new Lina’s concept is designed to be the new community spot for locals to gather and eat or grab and go for all things Italia.

He said the new Inglewood location will include a LavAzza Organic Tierra Cafe, a pizzeria and a dining area, a salumeria, a bakery, gelato, a prosciutto tasting area, Italian brunch, catering services and of course specialty Italian groceries.

The location also includes underground parking.

“As we’re growing we’re going to be able to make food more affordable for the Calgary market. So you’re actually going to see better pricing and more food choices from the Eurozone but also encourage our local producers to start with us and we can be a launch pad for local and Canadian products,” said Rai.

“We want to create a cultural hub . . . We want to introduce the Italian culture starting with the bread, starting with cheese, starting with prosciutto. Our goal is just to incorporate Italian culture back into Inglewood.”

Image: Lina’s Italian Piazza

Each of Lina’s locations in Calgary reflect the communities where they are located with product selection catered to that particular area.

Each of Lina’s current three locations in Calgary reflects the communities where they are located with product selection catered to that particular area – Lina’s Italian Market,  2202 Centre St. NE; Lina’s Italian Supermercato, #100, 4916 130th Ave SE; Lina’s Italian Mercato, 5108 Elbow Drive SW.

Lina’s Italian Mercato at 5108 Elbow Drive SW, Calgary, AB
Lina’s Italian Supermercato

The brand prides itself on being a local business that supports the community.

“A community is like a big family, and Lina’s Italian Market is proud to be a part of that family. We believe in supporting our community and helping it thrive, whether that means providing delicious, high-quality food, or simply being a friendly and welcoming place for people to gather,” said Rai. “As an Italian market, we take great pride in offering a wide variety of authentic Italian products, from fresh pasta and olive oil to cured meats and cheeses. We believe that these traditional foods are an important part of our cultural heritage and are delighted to share them with our community.

“But Lina’s Italian Market is more than just a place to shop for groceries. It’s a place where people can come together to share a meal, talk about their day, or catch up on the latest news. We believe that a strong community is built on connections like these, and we’re honored to be a part of it. Our team is committed to giving back to the community by supporting local organizations and charities that make a positive impact in the life of our community. At Lina’s Italian Market, we’re not just in the business of selling food, we’re in the business of building connections and making our community a better place to live.

“Overall, Lina’s Italian Market is deeply committed to the well-being and growth of our community and we will always strive to be a valuable resource and hub of connection.”

The new Inglewood location will offer catering services for all occasions. It will include a traditional bakery with a wide variety of products and feature gelato products from Mario’s Gelati.

One of the pillars of the Calgary-based Lina’s business is importing fine food and products from Italy.

But the grocery store chain also is committed to supporting and promoting local vendors and providing them with a place where they can sell their products.

“Our grocery will have all our specialty items but as we’re growing we’re going to be able to make food more affordable for the Calgary market. So you’re actually going to see better pricing and more food choices from the Eurozone but also we’re going to encourage our local producers to start with us as we can be a launch pad for local and Canadian products,” said Rai.

“I don’t think a lot of people know this about us but we’ve incubated a lot of local products that have gone national or received traction. A few of them would be North Water, Secret Foods.”

Lina’s Executive Chef Christopher David Hyde

North Water is a water beverage that uses alkaline water sourced from Rocky Mountain springs and contained in recyclable aluminum bottles.

Secret Foods tahini sauce was created with the aim of bringing to life a clean, all-natural, plant-based alternative to traditional condiments.

The new location will also have a prosciutto bar.

Zellers to Launch Food Trucks in Effort to Drive Traffic to Bay Stores

Zellers Restaurant at Bower Mall (Image: Mitch White / Flickr)

The relaunch of the Zellers brand by the Hudson’s Bay Company this spring in Canada will drive foot traffic to Hudson’s Bay stores that desperately need it. The buzz on social media clearly indicates that there is interest in the Zellers brand which effectively disappeared about a decade ago. Many Canadians had requested the return of the nostalgic Zellers restaurant concept as part of the retailer’s relaunch and now it’s confirmed that a version of that will return in the form of food trucks. 

The Hudson’s Bay Company is taking advantage of the nostalgia factor of the Zellers brand which many in the country still remember, and many fondly. With that, HBC is launching a fleet of Zellers-branded food trucks that will become part of the retail mix in an effort to create buzz and attract consumers to Hudson’s Bay stores. It’s noted that given the size of the Zellers shop-in-stores at Hudson’s Bay, there simply wasn’t enough room in the 8,000-10,000 square foot stores to create full-sized restaurants as many remember in the Zellers locations of the past. The Zellers shops will begin to open within selected Hudson’s Bay stores this spring, featuring dedicated fixtures with eye-catching red signage. 

A cross-Canada tour is planned. “Set to appear over a series of days, the Zellers Diner on wheels will pull into various locations and serve shoppers with some fan favourites from the fondly remembered Zellers Family Restaurant,” the retailer said in a statement. 

[See also: Zellers Announces 25 Shop-in-Shop Hudson’s Bay Locations Including Details on Store Sizes]

Zellers Hot Chicken Sandwich (Via Flickr / My TVC 15)

With the announcement on Friday, Zellers social media hosted a poll asking Canadians what they’d like to see on the menu. A total of 10 menu items were presented, nine of which were part of the original store as well as the addition of a vegetarian option. For a week, Canadians can vote and the top five winners will become part of the food truck menu as part of the spring launch. 

Those food options include: 

  1. Big Z Burger
  2. Fries and Gravy
  3. Hot Chicken Sandwich
  4. Grilled Cheese Sandwich
  5. Onion Rings
  6. Quesadilla
  7. Poutine
  8. Hot Dog
  9. Chicken Fingers
  10. Veggie Burger

More than 500 comments on one post on Instagram alone shows interest in the Zellers foodservice business that will be developed as part of the re-introduction of the brand in Canada. 

The retailer’s Instagram account notes that the Zellers-branded food trucks will be launched as part of a ‘Throwback event’ which will be followed by the vehicles “hitting the open road” as part of a tour. This will indeed create buzz as well as crowds wherever these land — and if done at Hudson’s Bay stores, these will create new foot traffic that otherwise wasn’t present at these locations. 

Zellers Restaurant (Image: Dave Scott / Flickr)

The Zellers Instagram account notes that the popular ‘3D club sandwich’ will not be part of the relaunch, which caused some disappointment among those commenting on posts. 

It also appears from social media posts, including comments by the official Zellers account on social media, that teddy bear mascot ‘Zeddy’ will be returning as part of the relaunch of Zellers 2.0. The retailer’s Instagram account repeatedly told commenters that it is taking things ‘one Zeddy step at a time’. In 2012, Zeddy was ‘adopted’ by Camp Trillium and we’re awaiting further details on how Zeddy will be returning, and if Camp Trillium will be receiving funds in return for the bear. 

There’s a possibility that Zellers will launch “official merchandise” as part of its re-introduction according to an Instagram comment by Zellers, noting that it would neither confirm nor deny that this will be part of the merchandise mix as stores prepare to open. 

The 25 Zellers stores are already being built inside of Hudson’s Bay stores, with some appearing to be closer to completion than others. Retail Insider was recently in Vancouver and noticed construction for a new Zellers space on the basement level of the downtown Vancouver Hudson’s Bay flagship store. Others have posted photos on social media of the soon-to-open Zellers stores. 

The buzz around Zellers is a dream for Hudson’s Bay — most of its stores are otherwise quiet and lacking in updated aesthetics, interesting merchandise or customer service. Most of the 25 Zellers locations will be within Hudson’s Bay stores that might be considered ‘secondary’ locations, and these will at least initially see a boost in foot traffic given the excitement already seen online. 

More Zellers locations could open within Hudson’s Bay stores following the launch of the first 25. It hasn’t yet been announced where these will go. At the same time, Hudson’s Bay will be reducing its footprint slightly this year as we’ve confirmed the closure of at least two Hudson’s Bay stores in Canada, with more details to follow. 

Cineplex Launches New ‘Junxion’ Entertainment Concept with Additional Canadian Locations Planned [Interviews]

Cineplex Junxion Kildonan

Cineplex, Canada’s leading entertainment and media company, has launched a brand-new entertainment destination with the launch of its first Junxion location, Cineplex Junxion Kildonan in Winnipeg. 

And the company is planning to roll out the concept to more locations.

Junxion opened in December in time for one of the most highly anticipated films of the year, Avatar: The Way of Water. 

“Junxion is the ultimate entertainment destination that re-imagines Cineplex’s best-in-class guest experience by bringing together movies, amusement gaming, dining, and live performances under one roof. The Junxion concept truly offers something for everyone,” said Judy Lung, Director, Communications at Cineplex.

Cineplex Junxion Kildonan

“Cineplex Junxion Kildonan in Winnipeg, which opened in December, is our first Junxion location. Spanning 35,000 square feet, Cineplex Junxion Kildonan features six state-of-the-art auditoriums with all-recliner seating, including one UltraAVX auditorium and D-BOX seats, over 4,000 square feet of dedicated space for over 50 amusement games, a party room, and a live entertainment space that features a local entertainment lineup.”

Lung said a large footprint is required for a venue of this size and scale, and Kildonan Place was exactly what the company was looking for in terms of space and location. 

“As well, we knew the region’s demographic would be a perfect fit for this entertainment concept and its appeal to guests of all ages,” she said.

Judy Lung

“Cineplex is set to open its second Junxion location, Cineplex Junxion Erin Mills, in Mississauga, Ontario in 2023, with plans to expand the Junxion concept further in the years to come.”

Lung said that more than ever Canadians are looking for the opportunity to truly escape and embrace the magic of the movies and enjoy the unrivaled experience of the big screen. 

“They are also looking for entertainment destinations that offer a variety of premium experiences as well as a social space to reconnect with family and friends. Junxion checks all of those boxes, for guests of all ages,” she said.

“We have been seeing record box office numbers in recent months, thanks to a strong film slate, including recent titles like Black Panther: Wakanda Forever and Avatar: The Way of Water. It’s clear that our guests have missed our theatres and entertainment venues, and are thrilled to be back to enjoy an experience that can’t be replicated at home.”

Future Cineplex Junxion at Erin Mills Town Centre (Image: insauga.com)

Cineplex operates over 170 theatres and location-based entertainment venues across Canada.

Ellis Jacob

“We have a legacy of bringing new and innovative entertainment options to Canadians of all ages and the Junxion concept is a perfect example of that. We know our guests are looking to connect with one another in a shared experience that is so much more than a movie theatre,” said Ellis Jacob, President and CEO, Cineplex.

 “With the best films, a wide selection of amusement games, great food, and live local entertainment, the Junxion combines all that Cineplex does best under one roof.”

Located at the popular Kildonan Place mall, the new entertainment venue replaces the Famous Players Kildonan Place. 

Queen Street West Retailers in Toronto Anxious about Metrolinx Ontario Line Construction [Interviews]

Queen Street West (Image: Zaid Kaddoura)

Queen Street West retailers in Toronto are concerned about how they will be impacted by the decade-long construction of Metrolinx’s new Ontario Line.

The line is planned to run under Queen Street from around Portland Street to Sherbourne Street. This section of the line will be bounded on the West by Queen-Spadina station and on the East by Moss Park station.

The Ontario line spans 15.6 kilometres. The section that runs through Queen Street West will be entirely underground. (Courtesy: Metrolinx)

But the Queen Street West community feels their concerns are being neglected.

Elana White, owner of Outer Layer: Cards and Gifts, said she understands the need for the line but is worried construction will impact her business negatively.

“The construction is going to be nightmarish,” she said in an interview at her store, which is about a five minute walk from Queen and Spadina streets.

She expects the number of pedestrians in the area is going to plummet for the duration of the construction, stalling the neighbourhood’s post-pandemic recovery.

“It’s going to be annoying for people to get around. They’ll say, ‘Well, why don’t we go somewhere else instead?’” She said.

In an email to Retail Insider, Metrolinx said they are working with the City of Toronto and the TTC on a transit detour to minimize this loss in foot traffic.

Although White expects her business to survive the construction, she added that others can’t say the same.

“For those of us that are still around after the construction, the new line will be great,” she quipped.

She said she was also concerned about how the new line will increase Queen Street West’s property values, and by extension the rent she pays.

“In that way, it’s good for landlords, but bad for small businesses,” she said.

Outer Layer: Cards and Gifts (Image: Zaid Kaddoura)

Construction over communities

Metrolinx said they maintain a constant line of communication with BIAs, businesses, property owners, and other stakeholders.

But White said she feels the Queen Street West community is out of the loop, exacerbating their anxieties about the project.

“We want to make sure they actually listen to our concerns,” she said.

Like White, lawyer Shane Rayman, co-founder of Rayman Harris LLP, is uneasy with Metrolinx’s treatment of Queen Street locals.

“When small businesses, small homeowners and renters – the people who can’t afford a lawyer – are approached by the government, they get bullied,” Rayman said in a phone interview.

He believes when governments say they’re looking out for local interests in projects like these, they’re really just looking for ways to cut costs and save time. He added he doesn’t believe businesses should sign anything without a lawyer.

“I’ve worked with a lot of people who’ve signed documents because they had a bit of money given to them, only to realize after the fact that they’ve waived all of their rights to compensation,” he said.

He explained there are two circumstances in which businesses can be entitled to compensation because of projects like the Ontario Line.

The first instance in which businesses can be compensated is when land or property is expropriated (taken away by a government or authority). Those impacted by expropriation have the right to be made whole (relocated and awarded sufficient compensation for lost business as a result of being moved).

The second circumstance in which businesses are entitled to compensation is when they experience injurious affection – this is when land is not taken away, but the business was still substantially and disproportionately harmed. Rayman added this second circumstance is much harder to prove.

“If your sales go down by 30, 40, or 70 per cent, that might be severe. It also has to be something not everyone incurred,” he explained.

A repeat of Eglinton?

Rayman noted that Metrolinx has a history of putting projects before communities.

“The Eglinton line has been a nightmare for more than 10 years now. It’s not finished yet, and businesses are suffering horribly from it,” he said.

Rayman is referring to the Eglinton Crosstown light rail transit line, which is being built by Metrolinx as an extension to the Toronto subway. Construction began in 2011, with an estimated completion date of 2020. In December of 2022, Metrolinx announced the project would likely be completed in 2023.

A map of Line 5 Eglinton. As of September 2022, the estimated cost of the project sits at $12.82 billion. (Courtesy: Metrolinx)

He recalled how some expropriated businesses in Eglinton signed release forms, which stripped them of their right to compensation. Because he believes stories like these are all too common, he’s worried about the fate of Queen Street West.

“With these projects, a lot of promises aren’t really kept. It’s not always due to malice, sometimes progress just gets in the way of commitments to local communities,” he remarked.

White echoed Rayman’s fears about the Ontario Line.

“Everybody’s worried about what happened in Eglinton and how painful of a process it was,” she said.

The foundations of a community shaken

White added the construction of the line has deeper implications for Queen Street West – about 100 feet deep, in fact. From University Avenue to Bathurst Street, Queen Street West is designated as a Heritage Conservation District under Part V of the Ontario Heritage Act.

Many of Queen Street’s buildings date back to the 19th and early 20th centuries, including the building in which White’s business is located, which was built around 1899. But their underground foundations have not aged well, and don’t hold up to the sturdiness of their contemporary counterparts.

White is concerned about how much the construction of the underground line will push these older foundations to their limits.

Outer Layer: Cards and Gifts preserved historical brick facade (Image: Zaid Kaddoura)

“Is my building going to be shaking?” She joked.

In addition to safety, she hopes the project will take care to preserve as much of the street as possible.

Metrolinx said they are working with conservation specialists to ensure the protection of Queen Street West’s historical value.

“We always strive to reduce or avoid impacts to heritage properties,” they said.

As of November of 2022, Metrolinx estimated the Ontario Line will be completed by 2031, and will cost between $17-billion to $19-billion. Upon completion, it is expected to service more than 400,000 passengers daily.

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