Sault Ste. Marie's Downtown Association isn't going to be snuffed out without a fight.
The almost half-century-old business improvement organization is blasting back with both barrels after Mayor Matthew Shoemaker announced Thursday that he wants to dissolve the member-supported group.
As SooToday reported on Thursday, the mayor is pushing to transition downtown development services from the Sault Downtown Association to the city.
“The City of Sault Ste. Marie has invested significantly in our downtown over the past several years, and it’s clear that while progress has been made, more is needed – and we can do better," Shoemaker said to SooToday.
A report prepared by city staff for Monday's city council meeting asks city councillors to choose between these three options:
- maintain the current Business Improvement Area (BIA) and Downtown Association (DTA) funded by BIA businesses
- dissolve the current DTA and bring all services under the city umbrella
- dissolve the current DTA and reallocate activities under the city umbrella with a supporting business advisory committee and some incremental staff, similar to what has been done in the city's tourism and economic development
Shoemaker has indicated he prefers dissolving the Downtown Association, which would deprive the city of the $219,000 that the business group collects annually from downtown businesses and property owners, plus some other grant income that the city wouldn't be eligible to collect on its own.
The association acknowledges that 11 business improvement associations have been dissolved in Ontario since 2018, but points out that nine were created over the same years and 40 were created since 2010.
"The City of Toronto in their new economic development strategy will be supporting the creation of an additional 45 BIAs (over and above the 85 in place) by 2035," said the Downtown Association's report prepared for Monday's council meeting.
If city council decides to dissolve the association, downtown's operating budget would be reduced to $150,000 and sourced by the general tax base, the group says, adding that four or more association jobs would be lost.
Here's a response prepared by the Downtown Association for an expected showdown at Monday's city council meeting:
In response to the council report Downtown Business Improvement Area, agenda item 8.3.2, the Sault Downtown Association Business Improvement Area (BIA) respectfully objects to the council report together with other major discrepancies in the report that are needed for council to make an informative decision, the SDA deems the report as incomplete and not inclusive.
The SDA offers a fourth option to be considered.
Option 4 - The organization requests a fourth option to be a hybrid model or 50/50 model in which there is a minimum and maximum (percentage) levy for members of the business improvement area that would significantly reduce the assessment and financial contribution from each member and the municipality would fund the remaining operating budget.
This would keep the BIA and amend the assessment formula with commitment and accountability to the City of Sault Ste. Marie.
This option both reduces the financial commitment to both the members of the BIA and the general tax base of Sault Ste. Marie as opposed to a full commitment from the general tax base if the BIA was absorbed by the City of Sault Ste. Marie.
The SDA employs three permanent staff members as well as interns and summer students. The organization also occupies an accessible storefront on Queen Street and has undergone a rebranding to improve communication and place-branding.
The SDA operates on a $340,000 budget in part funded by the private businesses in the BIA membership and from grants, sponsorships, and other income.
If option 2 or 3 are chosen, the operating budget would be reduced to $150,000 and sourced by the general tax base as well as the loss of four or more jobs at the SDA.
Downtowns across Ontario and Canada are key drivers of economic activity, community development, and cultural vitality. As the heart of most cities, they support business growth, job creation, and diverse public spaces while fostering social cohesion and sustainable living.
These areas also serve as cultural and historical touchpoints that attract residents and tourists alike. With proper investment and thoughtful planning, downtowns can evolve into vibrant, inclusive spaces that stimulate environmental sustainability and economic resilience for the entire community.
A proven model for downtown stewardship is the Business Improvement Area (BIA), first established in Toronto in 1969.
BIAs such as the Sault Downtown Association (SDA), founded in 1976, are funded through a special levy collected from member properties and supplemented by grants, sponsorships, and donations.
The SDA has grown from its early focus on aesthetic improvements to become a powerful force in marketing, business support, policy advocacy, and event-driven economic development.
In 2024 alone, the SDA organized:
- 14 major community events with over 15,000 attendees
- supported more than 25 other events across the community
- promoting over 600 community events via its online calendar
The SDA’s impact is backed by strong metrics:
- through the Digital Service Squad program
- awarded 112 Digital Transformation Grants totaling $280,000
- provided services to over 700 local businesses (in Sault Ste. Marie and the Algoma District), significantly raising digital literacy
- secured over $426,000 in grants and sponsorships from 2020–2024
- removed 143 graffiti tags in 2023
- invested $4,000 on holiday lights
- jointly, installed holiday lighting on all downtown streetlamps
- helped bring 22 large-scale murals to the City through the Community Art Project
- removes thousands of pounds of litter from public spaces yearly
- maintains public realm assets in collaboration with city departments and contractors
Beyond beautification and events, the SDA continues to lead in advocacy, promotion, and public safety.
The SDA’s 2024 marketing efforts included:
- more than 100 social media posts, radio campaigns, newsletters, and billboard ads, reaching a combined social media audience of over 10,000 followers
- SDA sent out 53 emails including monthly newsletters
- pays for and maintains two billboards during the holiday season
- this year the SDA is poised to launch its revised Zero Vacancy program to reduce commercial vacancies and support new business incubation
- business Retention + Expansion OMAFRA
As part of the SDA’s ongoing efforts to support and strengthen the local business community in the downtown as well as the broader community, the SDA launched a business retention + expansion (BR+E) initiative through the Ontario Ministry of Agriculture, Farming, and Rural Affairs (OMAFRA) in partnership with the Sault Ste. Marie Community Development Corp. and the Sault Ste. Marie Chamber of Commerce.
The OMAFRA BR+E program is designed to engage local businesses in identifying opportunities and challenges within their communities and industries, ultimately helping to ensure the continued growth and success of our downtown core and business community in Sault Ste. Marie.
Participating businesses will be asked to complete a confidential survey that covers a variety of topics such as:
- current business challenges and opportunities
- infrastructure and service needs
- workforce and skills development
- ideas for improving the downtown/Sault Ste. Marie business climate
Following the survey businesses will receive follow-up consultations to discuss key findings and help develop tailored action plans to address specific needs.
The SDA, it is also a strong advocate on policy and safety matters, working closely with police, social services, and all levels of government to address downtown challenges and promote a safer, more inclusive environment for all.
Doug Sams, president of the Ontario Business Improvement Area Association (OBIAA) states: “OBIAA highly supports the BIA model as the BIA tool helps foster collaboration and collective action to improve our main streets’ business conditions, encourage economic growth, and create vibrant, attractive communities. In today’s current economy and with US tariff’s effecting all business, our BIAs need to be strengthened, not weakened.”
During the recent Covid crisis, the SDA supported the business economy by:
- supporting businesses through a 50 per cent reduction in the levy for the year of 2020
- matched businesses with pandemic relief grants and loans
- ran marketing campaigns to support local downtown businesses during the shutdowns
- administered Digital Main Street grants and the Digital Service Squad to bring businesses online when they were forced to physically close to customers
We would note since 2018 we have come to understand that while 11 BIAs were dissolved province-wide, nine were created during the same timeframe, 40 since 2010 and the City of Toronto in their new economic development strategy will be supporting the creation of an additional 45 BIAs (over and above the 85 in place) by 2035.
To conclude, the board and members of the SDA believes in the value of the work provided. Our levy, raised through additional levy to commercial properties, does not affect the taxes of the community “as a whole” while providing additional investment for the betterment of the whole community.
Business Improvement Areas (BIAs) offers several benefits to local businesses, property owners, and communities.
A BIA is a designated area within a municipality where businesses work together to improve and promote the area. Here are some of the key benefits:
- by pooling resources, businesses can collectively market the area and host events that attract more customers
- a well-established BIA can make an area more appealing to new businesses, fostering growth and competition
- investing in public spaces, streetscapes, and infrastructure can increase the overall appeal of the area, potentially raising property values
- BIAs often create joint marketing campaigns, share advertising costs, and promote events that increase foot traffic to the area, benefiting all businesses
- BIAs help create a strong, unified identity for the area, which helps to establish a unique sense of place that attracts customers
- hosting festivals, farmers' markets, and seasonal events can bring additional visitors to the area
- BIAs often fund streetscape improvements such as landscaping, signage, lighting, and sidewalk upgrades, which enhance the area’s aesthetic appeal
- many BIAs contribute to maintaining clean and safe public spaces, which can positively impact both business and residential communities
- BIAs may have access to municipal, provincial, or federal funding and grants for improvements, events, and business support programs
- businesses can benefit from cost-sharing initiatives for marketing, beautification, and security programs, which would be too expensive to implement individually
- BIAs act as a unified voice for businesses when dealing with municipal government policies, zoning issues, and other regulatory matters
- BIAs can lobby for local government support on issues like parking, tax rates, and infrastructure improvements to help their businesses succeed
- BIAs provide opportunities for business owners to network with each other, share best practices, and collaborate on joint ventures or projects
- creating a sense of community among businesses and property owners fosters a cooperative and supportive environment
- through marketing efforts, special events, and improved infrastructure, BIAs often draw in more shoppers, tourists, and visitors
- BIAs improve the overall shopping and customer experience, which leads to higher customer retention and satisfaction
In summary, a BIA helps foster collaboration and collective action to improve business conditions, encourage economic growth, and create vibrant, attractive communities.
Monday's city council meeting will be livestreamed on SooToday starting at 5 p.m.
Ward 5 Coun. Corey Gardi and Ward 3 Coun. Ang Caputo are expected to propose that council dissolve the current DTA and reallocate activities under the city umbrella with a supporting business advisory committee and incremental staffing, adding a stipulation that $150,000 currently allocated to the downtown security pilot program be allocated to a municipal downtown development budget line item in the 2026 preliminary budget.
Under their proposal, city staff would report back on whether more money is needed to properly fund downtown development.