While many cities are investing in bike infrastructure, numerous studies suggest that bike lanes can have a positive impact on local businesses. Research indicates that bike lanes increase foot traffic, create a more vibrant, walkable environment, and encourage healthier commuting. However, the benefits of bike lanes aren’t universally accepted, as highlighted by a recent lawsuit filed by over 40 business owners in Etobicoke. These business owners are claiming that bike lanes installed along Bloor Street West in their area have negatively impacted sales and caused traffic congestion.
A 2016 study by the Toronto Centre for Active Transportation (TCAT) found that bike lanes installed along a 2.4 km stretch of Bloor Street, granted in a much busier downtown commercial area, had a positive economic impact. The study collected data before and after the installation of the bike lane, including surveys of more than 3,000 visitors and 525 merchants. The findings showed a clear increase in business activity along Bloor following the installation of the bike lane, particularly for businesses catering to foot and bicycle traffic.
Merchants reported a higher number of customers arriving by bike and foot, both of whom spent more money compared to those arriving by car or transit. Visitors arriving by foot or bike were also more likely to visit frequently, underscoring the idea that bike lanes can stimulate local commerce. Additionally, perceptions of safety for cyclists increased dramatically, which may have contributed to the positive reception from cyclists and visitors alike.
A study conducted at the University of Melbourne determined that while drivers spend more per hour than people on bikes ($27 to $16.70 respectively), six bikes could fit into one car parking space, which would yield a potential $97.20 an hour if the car parking were to be converted to bike parking.
According to a previous Momentum article, studies conducted on consumer spending by mode of transportation in Davis, CA, Bern, Switzerland, San Francisco, CA, Toronto, ON, Auckland, New Zealand, New York City, NY, and Portland, OR all reached the same conclusion: people on bikes spend more money. In some cases, people on bikes spent the same per trip as people in cars, but in all cases, people on bikes spent more overall in long-term spending because they made more trips.
While the Bloor Street study shows promising results, not all business owners agree with the positive economic impact of bike lanes. In Etobicoke, a group of over 40 businesses has filed a lawsuit against the City of Toronto, claiming that the recent installation of bike lanes along a section of Bloor Street West has caused increased traffic congestion, reduced parking, and led to a decline in sales. The businesses are seeking $10 million in damages for “negligence and nuisance” caused by the bike lane.
Business owners argue that the consultation process for the bike lanes was insufficient and that their concerns were not adequately addressed. One business owner, in a CBC News article, Henny Varga of Simply Chic, reported a 20–25% decrease in sales since the bike lanes were installed. The plaintiffs claim that the bike lane has eroded the character of the neighborhood, reduced foot traffic, and caused delays for emergency vehicles.
The bike lanes in question are scheduled to be ripped out as early as this month following the controversial passing of new Ontario government legislation.
That legislation and the bike lane removals it proposes amongst many other things related to traffic congestion, are part of another lawsuit launched in part by local advocacy group CycleTO.
“Bill 212 puts lives at risk. It is not about tackling congestion, working with municipalities for data-driven solutions, or giving people more transportation options,” said Michael Longfield, Executive Director of Cycle Toronto. “It is unprecedented jurisdictional overreach undermining local democracy that will cost taxpayers millions of dollars and jeopardize the safety of cyclists.”
Advocacy groups like CycleTO argue that bike lanes help create a more sustainable and attractive environment, which ultimately benefits everyone, including businesses. The City of Toronto, in response to the concerns raised by businesses, has expressed its willingness to explore ways to redesign the bike lanes in question to accommodate both cyclists and motor vehicles.
According to the CBC, Mayor Olivia Chow has met with the business owners who launched the lawsuit, stating that the city is exploring ways to modify the bike lanes to allow for a motor vehicle lane while still preserving the cycling infrastructure. This potential redesign reflects the City’s effort to strike a balance between the benefits of cycling infrastructure and the concerns of local businesses.
While studies show that bike lanes can be good for business in many cases, the experience of businesses in Etobicoke highlights the need for ongoing dialogue and adaptation. Cities must continue refining their consultation processes and ensure that bike lane projects are carefully planned to address the concerns of all stakeholders, from cyclists to businesses.
In the case of Bloor Street in downtown Toronto and other cities, studies show clear evidence that bike lanes can stimulate local business activity. However, as the Etobicoke lawsuit demonstrates, businesses continue to have a very hard time believing the evidence.
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