City staff are proposing getting rid of the tax rebates the city annually hands out to some 500 vacant businesses and storefronts in Hamilton.

Staff suggest phasing the program out over two years. If council agrees, that will save the city an estimated $1.25 million in 2018 and another $1.25 million in 2019.

That's $2.5 million a year going forward. What to do with all that found money?

Staff recommend referring it to the operating budget process for discussion.

But Jerome Skara, owner of the Gown and Gavel pub on Hess Street South, suggests using the money to help businesses along the LRT corridor survive the construction upheaval.

Skara could not be reached. But based on in his email response to the city's request for feedback on its review of the tax rebate program, it's clear where he's coming from.

"It's just a simple thought showing Hamilton is capable of moving forward and helping biz out while construction heartaches are in play," Skara said.

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Straightforward, yes; also very timely.

There are 650 to 700 business addresses along the 14-kilometre route from McMaster University to Eastgate Square. And everyone knows the corridor is going to become a veritable war zone when construction — slated to begin in a big way in 2019 — gets underway.

Even though the project is expected to be done in phases from 2019 to 2024, the resulting chaos is clearly going to disrupt both foot and road traffic.

Metrolinx, the provincial transit agency spearheading the $1 billion project, has business support programs in place which, in partnership with the city and organizations such as the Hamilton Chamber of Commerce, will strive to mitigate the impacts.

But Metrolinx doesn't provide direct financial compensation to businesses who suffer losses due to construction. Could the city step in to fill that gap?

Paul Johnson, city co-ordinator for the LRT project, is not aware of any municipalities that have given direct financial support to compensate for business losses during major transit projects.

But he says the city can help out anyway it wants as long as it doesn't run afoul of its own bylaws or provincial regulations.

Even if direct payments don't fly, Johnson notes the city could look at starting or expanding any number of incentive and grant programs to support businesses.

"They could be renovation grants; they could be additional marketing support grants; they could be looking at waiving parking fees."

Johnson points to Minneapolis-St. Paul which gave renovation grants to impacted businesses during the construction of its LRT system.

"What it did essentially is while you were in a down period, you renovated your store. If you're going to do interior renovations, you might as well do it while you have fewer customers.

"The quid pro quo from the municipality's perspective is you sign a covenant saying you're staying for five years along the (LRT) corridor. If you don't, you pay it back."

The challenge, of course, is finding a funding source. Dumping the tax rebate program — which gives owners of vacant commercial and industrial properties a 30 per cent tax break — could be that wellspring.

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The rebate program has been around since 1998. It was established by the province to help business owners weather tough economic times. These days it's widely seen as more of a disincentive for fixing up derelict or empty properties.

Given that the program's days seem to be numbered, there's a nice symmetry in using the saved money to help other businesses survive the coming LRT chaos.

Who knows, it might also help stave off legal claims for business losses which are permitted, notwithstanding the name, under Ontario's Expropriations Act.