Marda Loop businesses sue City of Calgary for $75 million over 'debilitating' 2-year construction project
Proposed class-action lawsuit alleges plaintiffs 'suffering dire financial consequences'
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.
"As the matter is now before the courts, we are not able to provide any further comment," reads the statement.
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