Tranquille Road - Kamloops North Shore, B.C.
BLOCK REPORT ROUND #2: NOVEMBER 2020
This report was prepared during the months of October and November 2020 based on conversations with the North Shore Kamloops Business Improvement Area (BIA) and local business owners, a business survey and a variety of other data sources. It provides an update to the Round #1 Block Report produced in July 2020.
Photo credit: Kamloops North Shore BIA
Summary
Located north of downtown Kamloops, B.C., Tranquille Road in the North Shore includes an eclectic mix of businesses, some of which have been there for 40 years. Of the 60 businesses on the block, the majority (88%) are independently owned.
There were 140,000 fewer visits to this block from April to September, compared to the same time period last year (a 28% decrease). This is the least of any of the 7 blocks studied.
Many of the businesses continue to operate with fewer staff in order to control costs; 50% of businesses surveyed reported having fewer staff than they did pre-COVID.
The City of Kamloops is working on an updated Community Plan for the North Shore. This plan has helped to guide the City and the BIA in responding to the pandemic. It has also helped to create momentum and community support for the future of the area.
The future of the businesses in this area is dependent on keeping COVID numbers low. The BIA is working to encourage people and businesses to be diligent about following safety protocols.
Business Survey Highlights
We conducted a survey of local businesses on this block to better understand the impacts of COVID on local businesses and the street. Here is what we learned:
50% of businesses are operating with fewer staff than pre-COVID
50% of businesses have increased revenues of more than 50%
40% of businesses have been experiencing supply chain issues to some degree
20% of businesses said that they expect to be closed down in 3-4 months if there are increased restrictions on business operations as a result of a second wave
60% of businesses said that higher costs (e.g. to purchase personal protective equipment (PPE) for their business is their biggest challenge
70% of businesses said that they would like to see governments focus on ensuring that the street doesn't become overly vacant or blighted
60% of businesses said they would like to see improved/expanded relief measures for business cash flow (e.g. CEBA, wage subsidy). Only 10% of businesses said they would like to see improved rent relief programs.
“I am just a business owner and not out to make millions. I just want to be able to make an income for myself. Whatever the government can do to help us financially will be a benefit for me and my business.” – Local business owner
“Winter is going to be extremely difficult. It may be cheaper to close and wait for spring than to try to keep going. Grant funding for outdoor improvements would help. Taking the risk on spending what little money is in the bank on outdoor seating that may or may not be used in winter seems too risky.” – Local business owner
Tranquille During COVID-19
Key Impacts:
Two businesses on this block have closed since the pandemic began, including the offices of a construction company and forestry company.
Several of the businesses on this block are operating with reduced hours which has an impact on the pedestrian traffic and vibrancy of the street. There were 140,000 fewer visits from April to September, compared to the same time period last year (a 28% decrease). This is the least that any of the 7 blocks saw a decrease in visits.
Many businesses are operating with fewer staff in order to control costs; 50% of businesses reported having fewer staff than they did pre-COVID. Businesses reported wanting to take fewer risks with their staff and the BIA suggested that as a result those who are getting hired are less likely to be newcomers to Canada, individuals with development disabilities.
Relationships between landlords and tenants on this block have been strained through the pandemic. Compared to local landlords, non-local landlords have expressed less concern for businesses and were less likely to participate in the rent subsidy program.
This neighbourhood is home to many vulnerable and marginalized individuals who rely on social services and facilities located on and near Tranquille Road. Restrictions and temporary closures of some of these services and facilities has exacerbated the challenges facing these communities.
While street activity was quiet during the summer, around the 3rd week of September there was a rise in activity, aligning with the end of CERB.
Bright Spots:
The ‘destination’ businesses on this block, such as the local pub and brewery, faired relatively well over the summer. Some businesses saw little to no change in customer activity, as people continued to patronize them; 40% of businesses have the same or increased revenues compared to the same time last year.
There has been a groundswell of community support for the North Shore neighbourhood. In response to the challenges brought on by the pandemic, the community, business owners and the BIAs are working together better than ever before.
The City is working on an updated Community Plan for the North Shore. This plan has helped to guide the City and the BIA is responding to the pandemic. It has also helped to create momentum and community support for the future of the area.
There has been an increase in development interest in the North Shore, which is very exciting for this community and supported by the policies in the Community Plan. Local developers are trying to hold on to properties in the North Shore as they want to see the area succeed.
What’s Next:
There is optimism about the new rent subsidy program. Businesses see this as critical to helping them through the slower winter season.
There have been new inquiries from businesses about the commercial properties on this block, suggesting an opportunity for new businesses to come in.
The BIA expects that this community will spend more conservatively over the holidays, which means businesses won’t see a huge upswing in sales.
The future of the businesses in this area is dependent on keeping COVID numbers low. The BIA is working to encourage people and businesses to be diligent about following safety protocols.
What Can Governments and Others Do?
The wage subsidy program has been helpful for some businesses, but many businesses on this block were not eligible. The federal government could look at expanding or tailoring this program to better meet the needs of smaller/micro businesses.
The 12-month repayment timeline on the federal government’s loan program (CEBA) was problematic given the pandemic is playing out over such a long period. Businesses would like to see loan programs with longer payback periods.
Governments at all levels need to work together to address safety issues on main streets like Tranquille Road. There is an opportunity to develop a strategy and increase funding to support a stronger safety net for street involved populations.
Procurement by private and public sector institutions, like schools, hospitals and local governments is a major force in the economy. Over the medium-term, municipal and provincial governments should review and update their procurement policies to include strategies for local and diverse procurement; 70% of businesses said they would like to see this.
The cost to winterize patio spaces is not feasible for most small businesses given their current revenue struggles. Governments or others could provide funding or other supports to help businesses create winter-friendly outdoor spaces.
About This Block
The Kamloops North Shore Tranquille neighbourhood is located northwest of downtown Kamloops, British Columbia. Traditionally a lower income community, in recent years market factors and revitalization efforts by the City, community groups, and local businesses have begun to stimulate investment in the area. This includes development of new commercial and residential real estate. There are seven active residential development projects in the Block’s vicinity.
Tranquille Road is the location of a number of social housing providers and social service agencies, including a mobile safe injection. There are also social service agencies that specifically cater to Indigenous community members. A key focus for the BIA and its members is to support community development and the provision of deeply-affordable and social housing support.
Tranquille Road is a main commercial corridor and a busy vehicle thoroughfare. Vehicular traffic through this corridor averages 2000 vehicles in a typical mid-morning. On this block, there is an eclectic mix of businesses, including many independent retailers like a cycle shop, liquor store, pawn shop, vape shop, and services like vehicle repair, beauty salon and a dry cleaner – some of which have been there for more than 40 years. There is a diverse mix of food service businesses, including Greek, Vietnamese, Sushi restaurants, as well as cafes, bars, and an upscale brew pub.
The Kamloops Innovation Centre is also located on this block. It includes coworking spaces and provides mentorship and programming to support local start-ups and entrepreneurs.
Provincial COVID Context
British Columbia has the fourth highest Covid-19 case count among Canadian provinces with over 27,000 cases. Beginning March 18th, the provincial government declared a public health emergency and required non-essential businesses to shut down, while requiring the safe operation of a broad range of businesses designated as essential services. As of June 24th, B.C. moved into Phase 3 of the government’s Restart Plan, which allows a broader range of businesses to reopen, including hotels and resorts, and select entertainment venues, providing that they develop the provincially mandated COVID-19 Safe Plans. Phase 4 will allow reopening of mass gatherings such as conventions and concerts, as well as international tourism, and is conditional on the introduction of widespread vaccination and community immunity. The Provincial Health Officer implemented an order on province-wide restrictions, which will be in effect from November 19 to December 7 which suspends all events and social gatherings, with an exception to weddings, funerals, baptisms, support group meetings and business meetings. All workplaces are encouraged to make every effort to provide work from home options, and it is expected that travel to British Columbia be for essential trips only.