East Hastings Street, Strathcona, Vancouver, B.C.

Jul 1

BLOCK REPORT ROUND #2: NOVEMBER 2020

This report was prepared during the months of October and November 2020 based on conversations with the Strathcona 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.

Summary

Strathcona is a residential neighbourhood and commercial district located east of Downtown Vancouver. East Hastings Street is a busy six-lane thoroughfare, and the main commercial strip in Strathcona.
This block includes part of the Downtown Eastside, one of Vancouver’s oldest neighbourhoods comprising residents facing complex social issues including addiction, homelessness, extreme poverty, mental illness, and sex work.
Three businesses on this block have permanently closed, including a laundromat, a motorcycle shop and a non-profit. Two businesses have remained closed temporarily. While most businesses have managed to stay open, they are struggling as a result of reduced revenues, less foot traffic, and the costs associated with COVID reactionary measures.
Many services and facilities tailored to those experiencing homelessness, mental health or addiction challenges located in this neighbourhood have been disrupted, limited, or closed due to COVID restrictions. This has put additional strain on these individuals and has impacted the way they gather in public spaces. Business owners expressed concern about public safety perceptions among other members of the community as a result.
There has been a drastic increase in street activity on this block, such as graffiti, break and enters and public drinking, which are major concerns for the community and local businesses.

Business Survey Highlights

We conducted a survey of local businesses on this block to better understand the impacts of COVID on businesses and the street. Here is what we learned:

67% of businesses said that increased safety and crime issues in the neighbourhood is one of their biggest challenges
44% of businesses said that in 3-4 months if there are increased restrictions they expect to have scaled down operations with a plan to get back to normal
33% of businesses said that they pivoted to new business models, products or services
67% of businesses said they would like to see governments encourage shopping at local/independently owned Canadian businesses
56% of businesses said that they would like to see governments help businesses pivot to take advantage of shifts in consumer behaviour going forward

Strathcona During COVID-19

Key Impacts:

Three businesses on this block have permanently closed, including a laundromat, a motorcycle shop and a non-profit. Two businesses have remained closed temporarily. While most businesses have managed to stay open, they are struggling as a result of reduced revenues (to make rent), less foot traffic, and the costs associated with COVID reactionary measures.
There have been 225,614 fewer visits to this block from April to September, compared to the same time period last year (a 48% decrease).
Many services tailored to those experiencing homelessness or addiction located in this neighbourhood have been closed or limited due to COVID restrictions. This has put additional strain on these individuals and has also impacted the way they gather in public spaces. This block is also close to a homeless tent encampment. The lack of public toilets and handwashing facilities continues to be an issue for the street population.
There has been a drastic increase in street activity on this block, such as graffiti, break and enters and public drinking. Business owners expressed concern about public safety perceptions among members of the community as a result; 67% of businesses said that one of their biggest challenges is the increased safety and crime issues in the neighbourhood
One business on this block took advantage of the City of Vancouver’s patio program (Strathcona Beer). Some non-restaurant businesses were not able to not get permits for pop up space.
The coworking space and professional service businesses on the block continue to see tenants and staff work from home. This impacts neighbouring businesses, who relied on the foot traffic and daytime visitors; 56% of businesses said that one of their biggest challenge is the lack of foot traffic going by the business.

Bright Spots:

Two new businesses have opened on this block since the pandemic began, including a tea shop and a printing shop. Other businesses have also opened nearby.
Many businesses reported pivoting to new delivery models which helped them keep revenues flowing; 33% said they have been positively affected by doing more business through delivery applications.
The BIA launched a new program that invited members to apply for cost-share grants for PPE, placemaking or safety, diversity & inclusion of up to $1K. Businesses have been very creative & innovative with how they are applying the funding. It has incentivized them to clean up & improve their business.
The BIA with its members formed an Advisory Team to help the neighbourhood deal with issues and advocate to the city on behalf of the neighbourhood.
The BIA and the City of Vancouver are working together to address safety issues in this neighborhood.

What’s Next:

The unknowns around the pandemic is one of the biggest challenges for businesses on this block; 56% of businesses said the uncertainty is one of their biggest challenges.
There is a great deal of anticipation about the new federal rent relief program; in October 56% of businesses said that they would like to see governments improve or expand on the rent relief program.
The BIA is focusing its efforts on encouraging the community to support local food and beverage businesses, especially through takeout.

What Can Governments and Others Do?

Safety is a major concern for this block. The BIA and the City are working together to address the complex street-involvement issues and their impact on the street. Hyperlocal strategies on mental health, addictions, homelessness and street involvement, along with increased security, are becoming of increasing importance. There is also an opportunity for different levels of government to come together to develop a strategy on mental health, addictions, and street involvement, and provide increased, targeted funding to support collaborative partnerships to address these issues.
Consumers have been supporting local businesses more than ever before and local governments and business associations are working to leverage this trend. Continued efforts to encourage local shopping, whether through public realm improvements or activations, policies changes like free parking, marketing campaigns or incentive programs, can help businesses through the next phases of the pandemic and over the long-term.
There is an opportunity to help small businesses pivot to take advantage of shifts in consumer behavior going forward, especially in the area of digital transformation; 56% of businesses on this block suggested this was a key role for governments in supporting long-term recovery.

About This Block

Strathcona is a residential neighbourhood located east of Downtown Vancouver. The Strathcona Business Improvement Area (SBIA) operates on the unceded territories of the Musqueam, Squamish and Tsleil-Waututh Nations.

East Hastings Street is a busy thoroughfare with six vehicle lanes of fast-moving traffic plus parking. It runs through Strathcona, to the entrance of Highway One, and eastwards through East Vancouver and Burnaby.

This block includes part of the Downtown Eastside, one of Vancouver’s oldest neighbourhoods comprising residents facing complex social issues including addiction, homelessness, extreme poverty, mental illness, and sex work. It is also one of Vancouver’s poorest neighbourhoods, with an average household income of about $28,000, less than half the city average. There are several social services agencies on or near this block, including the United Gospel Mission, which operates a shelter, social enterprise, and feeds 600 people a day.

Storefronts on East Hastings Street have large frontages and include a mix of shops and services. There are restaurants and cafes and a wide variety of retail, including a restaurant supply store, corner store, laundromat, thrift shop, craft brewery, art gallery and cannabis shop. There are also professional service firms such as architects and interior designers, personal wellness services and a coworking space. There are even a number of light or soft industrial/manufacturing spaces. A branch of the Vancouver Public Library and a community garden run by the University of British Columbia (UBC) is also located on this block.

Strathcona is known for being a home to many diverse entrepreneurs and social enterprises. There is a good mix of business owners who are racialized Canadians and small number of social enterprises serving, employing and run by indigenous peoples. The BIA characterizes the area as a community with strongly articulated values that together work to care for its residents.

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.

Canadian Urban Institute