Crown Street Mall retailers and landlords have been denied financial relief by Wollongong City Council during mall refurbishment works.
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While it is by no means a comprehensive study, the Wollongong Advertiser counted six mall businesses that have shut since the $20million redevelopment started in March 2013. Work ceased for three months last summer and the mall is due to fully reopen in October.
The businesses have either relocated, closed down temporarily or their fate is unknown. The retailers include two cafes (Cino and Antonios on Crown), streetwear shop Diversity, which has moved to Albion Park, fashion store Babes, which still operates in Thirroul, and Wasabi sushi restaurant, which plans to reopen once works are complete.
Commercial real estate firm Colliers International Wollongong represents two major landlords at the eastern end of the mall.
Associate director Marcelo Ramirez said they met Wollongong council officers twice on behalf of landlords and tenants, seeking council rates relief, especially the mall levy.
‘‘A lot of those owners pay a substantial mall levy and we were seeking some relief so they could pass that on to the tenants,’’ he said.
‘‘We spoke to council very early in the piece, but unfortunately we didn’t get very far. Council just informed us there was no mechanism or opportunity to grant relief,’’ Mr Ramirez said.
Customer patronage and foot traffic had dropped due to the works, and retailers were struggling to retain regular customers.
Mr Ramirez said shoppers didn’t want to come to a narrow, dark, noisy construction area.
Diversity was one of the victims of the works in a tough retail market.
‘‘They had been there for a number of years...they lost foot traffic.’’
Mr Ramirez said the end result would be good for the mall.
‘‘While everyone understands these works need to be undertaken, unfortunately the length and time has been a little too long. Some retailers are concerned it won’t be completed by October.’’
Illawarra Business Chamber policy manager Jancey Malins said the council could have considered rates relief. ‘‘We are seeing businesses leave the Wollongong CBD.’’
A council spokesman said the council was supporting mall retailers and property owners with a range of programs, such as the mall facade rejuvenation program and free Wi-Fi in the mall.
Work on the mall was progressing well and ‘‘the revitalised mall would be slowly revealed towards the end of October’’.
A $720 million investment in the CBD would double the inner city population and underpin further retail growth.
The spokesman said ratepayers could apply for assistance under the hardship policy. The council set its rates each year.
For 2014-15, IPART approved a special rate increase of 6.13 per cent but the council had levied a 2.3 per cent rise for mall businesses, in line with inflation. The council endorsed these rates on June 23.
There was also a mall rate category which applied to 72 mall properties – the funds supported extra activity in the mall and the mall’s upkeep. A city centre rate levied on 665 properties was used to provide security and graffiti removal.
Businesses might be closing due to factors other than the mall works, such as the general economic environment, he said.
