The City of Calgary has been sued for $75 million over alleged business disruption in Marda Loop due to ongoing construction projects in the area.
The Statement of Claim under the Class Proceedings Act was filed May 30 with the Court of King’s Bench of Alberta, with Silver Sage Beef and Diner Deluxe named as the primary plaintiffs, representing a group of businesses and property owners that have carried out business in the area since June 3, 2023.
(Editor’s note: the plaintiff is noted as Silver Safe Beef in the official court filings; however, the media release and subsequent search of the company show it to be Silver Sage Beef.)
According to a news release circulated June 16, the plaintiffs note the extended construction that’s been going on in the area.
“These projects have become an impediment to carrying out business, have been negatively affecting access to the public, and as a result have caused significant financial consequences for the business owners,” read the unattributed release.
“In 2022 the City offered some minor compensation to reflect financial losses, which is only a small fraction of the actual losses incurred to date.”
The release says the lawsuit represents businesses between 33 and 34 Avenue SW, and Crowchild Trail and 14 Street SW.
According to the Statement of Claim, the plaintiffs are suing because the defendant (the City) was negligent in carrying out its construction of the project, that the construction of projects injuriously affected and caused nuisance to the plaintiffs.
It states that the access to businesses has been restricted, there have been constant disruptions, no enjoyment on the properties, inconsistent timelines and project implementation by the City and constant sidewalk and road closures with high traffic volume in the area.
None of the contents of the Statement of Claim have been proven in court.
Marda Loop construction
The southwest area of Marda Loop has undergone considerable transformation, with several densification projects in the area over the past decade. That ongoing development hasn’t gone without its bumps along the way.
With the added density has been the need to upgrade the amenities in the area, including water, power and pathways and roads in the area. Residents and businesses have long lamented the considerable construction that goes along with development. In 2022, a petition was launched to stop the so-called overdevelopment of the area.
Back in 2023, the City of Calgary acknowledged some of the challenges businesses were facing due to the construction, and made amends through changes to their construction schedule to allow some businesses to take advantage of the busy holiday shopping season.
In spring of 2024, a pilot grant plan was adopted to provide some compensation to area business owners impacted by the ongoing construction.
The Statement of Claim outlines dozens of corollary impacts to the businesses in the area, including claims that there’s been a permanent reduction in the appraised value of land, and no access to plaintiffs’ businesses.
The City of Calgary was contacted for a response to this story and has acknowledged that request.
“We are aware of the claim and are currently reviewing it,” read an emailed response.
“As the matter is now before the courts, we are not able to provide any further comment.”
