The city of Montreal has laid out its long-awaited plan to compensate merchants who have been hit hard by major roadwork and infrastructure projects.
The city is setting aside $25M until 2021 to pay merchants who claim they have lost business during the work by the city and the STM on the island of Montreal.
As many as 60 work sites are included: projects by the city that last more than six months and include underground work and projects by the city and the STM that last at least three years.
Merchants can get as much as $30K a year and it's retroactive to January 1, 2016.
They have to prove gross financial losses for the year compared to previous years by providing documents such as income tax or financial statements.
The first 15% of losses must be covered by the merchant.
Merchants can start applying as of this January. If everything goes to plan, the first cheques will go out in two months or so.
If the merchant has since closed, declared bankruptcy or moved during the period of work, they are not eligible for compensation.
Also certain businesses that provide services such as massage parlours, real estate offices and health services are not eligible; retail merchants that sell goods are being targeted.
City council will have to approve each step of the plan at meetings this month and next.
The city says the compensation program is the first of its kind in Canada.