Banff’s business heavyweights have hired an independent economist to do a business case on the effects a quota system on corporate chain stores and restaurants may have on the local economy.
Banff Lake Louise Hotel Motel Association and a group of commercial landlords have hired economist Jamie Vann Struth, who is known for his expertise in regional economic development and municipal financial analysis.
Darren Reeder, BLLHMA’s executive director, said they want to provide an evidence-based review of how quotas or other restrictions on chain businesses may impact the open and competitive marketplace.
“We’re disappointed that council decided to go the route of public consultation on quotas without requiring administration to present a business case showing how additional regulatory measures contribute to future economic sustainability and how this would support future business attraction and reinvestment efforts,” he said.
“BLLHMA and the commercial landlords will provide a report with an analysis on quotas so that future economic planning decisions are rooted in fact, rather than myth.”
The Town of Banff will hold a public hearing in January to get feedback on proposed legislation to set up quotas in a bid to control the number of corporate chain stores and restaurants in Banff.
On a close 4-3 vote in September, council passed first reading of a proposed bylaw that would establish some sort of a quota system, thereby triggering a formal public hearing.
Politicians in favour of the public hearing made it clear they were not formally endorsing a quota system on chain stores and restaurants, but wanted formal public feedback on the issue.
Regulation of corporate giants has been a hot topic in Banff for well over a decade, but heated up in 2007 with the arrival of Indigo Books and the closure of the family-run Banff Book and Art Den after 43 years of business.
Most recently, the arrival of Montreal-based David’s Tea, which has close to 30 stores across Canada and parts of the U.S., sparked passionate debate amid concerns for the viability of locally-owned Banff Tea Company.
The proposed legislation in Banff defines a chain business as one of 12 or more of the same, outlines districts in which chains could be capped and proposes different ways to set a figure for the total in each district.
Options include back-casting the quotas to reflect the mix that existed during the 2008-2009 period when Indexperience visitor surveys were done, capping at current levels or allowing a cushion, like 10 per cent more.
Banff is home to many corporate restaurants and shops, including Starbucks, Tim Horton’, McDonald’s, Tony Roma’s, Gap, North Face and Lululemon among others.
Reeder said BLLHMA and the group of commercial landlords believes there are a lot of misconceptions about quotas on formula businesses and their ability to assure future economic sustainability.
“Our challenge to council has been to clearly demonstrate a business case for added regulation through quotas, but they elected not to go this route,” he said. “We believe council should have conducted the study we are doing in the interest of promoting informed, public debate.”
Reeder said Van Struth’s analysis also aims to provide the Town of Banff with an economic trend and series of economic prosperity indicators that can be used in the future creation of an economic development strategy.
“The study will explore how Banff’s economy has changed over the years and identify periods where the local economy was doing better or worse compared to other tourism-based economies we compete with,” he said.
“We believe the information contained in this study will assist greatly with future Town efforts aimed at creating a long-range economic strategy.”
Mayor Karen Sorensen said she looks forward to hearing the results of the economic analysis from BLLHMA, which is expected to be presented to council by the end of the year.
“I think it’s positive for us to receive as much feedback as possible on these economic questions,” she said.
“Banff Lake Louise Hotel Motel Association has chosen to bring in an expert to help them with their opinion and I think that is a good thing.”
BLLHMA released its second and third quarter council report card this week, giving council a C grade in the third quarter for moving forward with a public hearing on proposed quota legislation without a business case.
