Fewer patios in the core a possibility if Edmonton goes ahead with new fees

The Edmonton Downtown Business Association says patios will start disappearing from the core if the city goes ahead with a steep licensing fee increase.

Some businesses looking to serve customers on a patio will have to pay a price this summer, which might lead some to not have outdoor spaces at all.

The Edmonton Downtown Business Association (DBA) issued a letter asking city council to suspend the patio plan in favour of a “holistic approach” in the 2027 budget cycle.

The patio program started in 2020 during the pandemic at no cost to businesses.

The city says due to the 2024 operating budget adjustment, it’s moving to a “shared-investment model.” That means the city is covering half the cost of the patio program with businesses.

The new licencing fee applies to any patio where furnishings aren’t removed each day.

“It goes back to the structural budget variances that the city is facing and we’ve only got a few ways to increase our revenue and that’s either with provincial grants, which have gone wayside, user fees or property tax increases,” said Ward Ssomitpai Coun.Jo-Anne Wright.

The four options in the patio program include a small sidewalk patio, a parklet patio, a full sidewalk patio with boardwalk sidewalk or a partial sidewalk patio, with no boardwalk sidewalk required.

A railed patio, taking up a portion of the sidewalk, costs $500. A table and chairs option has no costs, however the DBA says this restricts the ability of a business to service alcohol and doesn’t provide a buffer between the customers and pedestrians and vehicles.

A much higher fee applies to patios that take up a lane of parking, or require a boardwalk in a parking spot. It will cost $3,700 for a seasonal patio and $6,900 for a year-round one.

Of the 18 restaurants with patios on public space downtown, the DBA says many are concerned about already “struggling to survive” with economic challenges such as inflationary pressures on food, tariffs on alcohol and rising costs of property taxes and increased wages.

“Through engaging downtown restaurants with patios, we heard how sensitive businesses are to additional costs and the impact this will have on their investment downtown,” said DBA executive director James Robinson in the letter.

“Additional costs risk restaurants permanently closing their patios.”

Restaurant owners told the DBA that the consequences of new costs and requirements mean they won’t renew their patio licences.

“The new model includes sharing the labour and material costs to install, remove and maintain temporary traffic control materials for the patios,” the city said in a statement to CTV News Edmonton.

“The fee will also contribute towards program costs associated with reviewing and coordinating patio setups with other curbside and sidewalk uses.”

Businesses looking to apply for the patio program can do it online. The new fees take effect in April.

With files from CTV News Edmonton’s Nicole Weisberg