Growing opposition to plaza surcharge plan

MORRISBURG – A Morrisburg business owner is speaking out against a plan to shift the costs of two local plazas to property owners.

In a letter sent to council August 29, Scott Lane—who owns Seaway Valley Pharmacy in the Morrisburg Village Plaza – said that proposed redistribution of operational and capital costs to businesses risks undermining those very businesses.

“While I appreciate the Municipality’s intent to clarify obligations and ensure sustainability, the proposed financial burden on plaza tenants, particularly small, independent retailers, risks undermining the economic vitality, community character, and long-term resilience of South Dundas,” Lane said.

Earlier this summer, a key information report brought to council outlined transferring operating costs of the municipally-owned common areas of the two plazas to the property owners. While commercial units in the plaza are privately owned by businesses, the sidewalks, canopies, parking lot, and court yards are owned by the Municipality of South Dundas.

This arrangement dates to the construction of the St. Lawrence Seaway in 1954-58. The two plazas, one in Morrisburg, the other in Iroquois replaced those villages’ downtowns with shopping plazas. The Iroquois plaza is concluding a million-dollar refresh this summer with new paving in the entire parking lot with an expanded park area and new safety bollards installed. Morrisburg is slated to undergo a similar renovation in 2026, addressing heaving sidewalks, deteriorating canopy supports, parking lot issues, and other maintenance work.

Lane explained that adding more costs to business owners will be an unfair burden given pressures already faced in the economy.

“Retail is already struggling against online competition,” Lane wrote. “Imposing additional fees for infrastructure such as sidewalks, canopies, and parking, only accelerates the decline of physical retail.”

He cited areas such as Kensington Market in Toronto and the Downtown Eastside in Vancouver as areas where increased costs led to the closure of independent retailers.

“Higher operating costs directly reduce the profitability and valuation of small businesses. When margins shrink, owners are forced to cut staff, reduce offerings, or relocate,” Lane continued. “If South Dundas becomes financially inhospitable, businesses will go where they are treated best, whether that’s Cornwall, Brockville, or even online-only operations. This is not a threat; it’s a reality already unfolding across Canada.”

Lane struck out at the lack of transparent consultation with the business and property owners in the plaza. South Dundas held consultation sessions which businesses had to register for and were limited to small groups. Municipal officials also met with Iroquois Business Group members in an informal meeting last month. That group is also opposing the proposed surcharge on properties.

In the key information report, a reserve to pay for future infrastructure costs and operational costs of services such as snow plowing would potentially lead to a surcharge of $1.48 per square foot of a unit in the Iroquois Plaza, and $1.05 per square foot in the Morrisburg Plaza. The charges would take place once capital repairs and upgrades were completed at both plazas.

Lane said that penalizing plaza businesses with the infrastructure costs of municipally-owned areas risked creating hollowed-out retail zones.

“Even if the municipality recovers some costs in the short term, the long-term consequences—vacancies, reduced tax base, diminished tourism will outweigh any immediate savings,” he said. “A thriving business community is a better investment than a cost-recovery scheme.”

Council input on the matter is limited to three of the five members of council. South Dundas Mayor Jason Broad and Councillor Cole Veinotte both declared a conflict of interest.

Recent discussions at the council table led to removing the park green space from the list of areas that the surcharge would cover. There is still a push by council and administration for businesses to cover the costs of maintaining municipally-owned parking lots, sidewalks, the centre courtyards, and sidewalk canopies, along with snow clearing and garbage services.

South Dundas’ roundtable discussions concluded September 5. As those meetings were not public, no information is available on attendance or issues discussed. The IBG did request a public meeting be held. No meeting has been scheduled.