City storefront grant a bid to boost business, fill London downtown vacancies

As a new business owner in downtown London, Jason Kenny is staring down a long list of start-up costs he'll need to cover in order to draw customers into his Richmond Street store. 

"There was a lot of fees for the signs and the permits," said Kenny, owner of Vape All Inc.

He bought an existing business operating out of a storefront on Richmond, just north of York Street. Shortly after that purchase, he relocated his retail store to a vacant storefront space a few doors north. 

The new store is in a better bigger location. However, the move has generated new expenses for upgrading the storefront and signage.

For now, he has to rely on bright yellow printed signs to let passersby know he's open for business. Kenny is also busy ordering a lit storefront sign, but that comes with a price tag of about $2,500.  

'"[The costs] could definitely stop someone from opening up a store," he said. "Any kind of grant would help."

The City of London is looking to provide help for store owners like Kenny, who are staring down some expensive outlays in order to convert vacant office spaces into a viable business.

Currently, before the council, the Vacant Commercial Space Fit-Out Grant would reimburse store owners up to 50 per cent of the cost for upgrades in formerly vacant spaces, including signage, lighting, awnings and other upgrades. The grant will cover up to a maximum of $50,000. City staff expect the program, which is an upgrade to other community improvement plan grants, will cost about $975,000 a year.

Kristin Nielsen is chair of the Downtown London Business Improvement Area. She said storefront upgrades in new retail spaces are the kind of expense that can catch some new business owners by surprise. 

"It can be one of the last things you consider, and it can be surprisingly expensive," she said.

Nielsen said promotion and access to such incentive programs are the key to their success. 

"Incentives like this are great if people know about them and know how to use them," she said. "They have to be accessible and promoted." 

The program would require some legwork for the business owner. The application for the grant would have to be tied to a city building permit if one is required. Also, any work being submitted for the grant would require two quotes. The business owner has to be on a lease for the space with a duration of not less than two years. There are other required documents, and city staff have to visit the site before and after the work is done. 

Mayor Josh Morgan touted the incentive plan in his State of the City address as a way to fill empty downtown spaces. London recently earned the dubious distinction of having more vacant downtown office space than any other city.