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CBC
13 hours ago
- Business
- CBC
Marda Loop businesses sue City of Calgary for $75 million over 'debilitating' 2-year construction project
Social Sharing A group of Marda Loop businesses is suing the City of Calgary for $75 million over an ongoing, two-year construction project that has left the plaintiffs "suffering dire financial consequences," according to a statement of claim. The lawsuit centres around the "Marda Loop Main Streets" project, a redesign of 33rd and 34th Avenues S.W. Construction on the project began in June 2023 and was supposed to be completed in the summer of 2024. The project is now set to be completed in October 2025. Silver Sage Beef and Diner Deluxe are the two named plaintiffs, representing a group of businesses in the proposed class action, which has yet to be certified. The lawsuit alleges the city was negligent in carrying out its construction of the project, which has faced "constant disruptions" and "undue delay," according to the statement of claim. The plaintiffs claim the city owed the businesses a duty of care to ensure safe access and to ensure businesses do not suffer economic hardship. According to the lawsuit, access to the plaintiffs' businesses has been restricted for years. 'Extreme drops' in customers They say they've experienced "extreme drops in customer traffic due to road closures, restrictive access, and the general unappealing prospects of a construction zone." The lawsuit argues that the project has caused reduced foot traffic in the area, lowered property values, increased vacancy, and caused a "loss of goodwill and customer satisfaction, mental health and well-being, competitive disadvantage," having an impact on "long-term viability." With construction hours running Monday to Saturday from 7 a.m. to 7 p.m., the businesses have faced "a sharp and debilitating decline in sales and patronage caused by the disruptions," according to the claim. The lawsuit alleges that some businesses have been forced to shutter while others have had to lay off workers. The City of Calgary has not yet filed a statement of defence and none of the allegations made in the statement of claim have been proven in court. In a brief statement provided to CBC News, the city says it is aware of the claim and is in the midst of reviewing it.
CTV News
a day ago
- Business
- CTV News
Marda Loop business owners launch class-action lawsuit against city over construction disruption
The City of Calgary is facing a class-action lawsuit from Marda Loop business owners, who say construction has caused them dire financial consequences. The City of Calgary is facing a class-action lawsuit from Marda Loop business owners. Businesses in the southwest along 33rd and 34th avenues, between Crowchild Trail and 14th Street, say construction there has caused them 'dire financial consequences,' and so they're taking the city to court. They want to be compensated $75 million plus 'special damages' to be proven in court. The businesses say the city offered some money in 2022, but it's a fraction of the total loss. The statement of claim says the plaintiffs are suing because: The defendant was negligent in carrying out its construction of the project; Construction of the project injuriously affected the plaintiffs; and Construction of the project caused nuisance to the plaintiffs. Silver Sage Beef and Diner Deluxe are leading this class-action lawsuit. Specifically, they state poor communication and lack of access to their stores due to the construction are among the main reasons behind the lawsuit. 'Our clients are basically telling us that they are selling their homes, they're getting second mortgages and they're hanging on by a thread … and that a number of other businesses have already left,' said Husna Ali Bik with Napoli Shkolnik Canada. In a statement, the city acknowledged the claim. 'We are aware of the claim and are currently reviewing it,' the city said. 'As the matter is now before the courts, we are not able to provide any further comment.' Marda Loop has been undergoing about $30 million worth of construction over three years. It's set to wrap up by Oct. 31. With files by Damien Wood
