Senior ACT government bureaucrats are working with organisers of Braddon art project the Chop Shop after plans to turn a derelict mechanics' workshop on Lonsdale Street into a temporary art gallery were blocked by planning officials.
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Despite a planned opening event on Friday night, organisers Sancho Murphy and Pat Rose were blocked by an ACT Planning and Land Authority stop work notice on their site.
Organisers were working with professional building certifiers, but did not have required building approval to operate the space for four months as a temporary art gallery, performance venue and bar.
The site will be demolished next year to make way for an apartment development.
A certifier called for works costing as much as $80,000 to be completed before the building could be opened for the new use.
An ACT government spokesman said on Thursday senior bureaucrats were working to resolve the situation as quickly as possible.
''The ACT government supports emerging and entrepreneurial small businesses and we encourage adaptive reuse of existing buildings where it is safe and appropriate,'' he said.
''In this instance there are significant fire safety issues that need to be addressed and the ACT government is working closely with the Chop Shop to try and find a safe and workable resolution.''
A spokeswoman for the Environment and Planning Directorate said the site had no building approval.
''The ACT Planning and Land Authority issued a prohibition and a stop work notice [on Thursday] to the lessee of the Chop Shop property at Lonsdale Street in Braddon, given that no appropriate building approvals were in place,'' she said.
It is understood the problems also included emergency access and toilet requirements.
The Chop Shop had planned to open on Friday to host a party for the launch of a new book by author Omar Musa. Another launch event is also planned at the venue for August 9.
The pair believes the stop work notice was issued after a complaint from a member of the public.
They created a crowdsource funding campaign to raise $10,000 for the project but exceeded their target and collected more than $16,500 in funding.
Lonsdale Street trader and site owner Nick Bulum said regulations blocking creative projects in Canberra were disappointing.
''It’s disheartening that all these regulations kill creative projects and become wet blankets to people putting their blood, sweat and tears to culture in a city, and the support is leak and weak,'' he said.
''Cities like Melbourne and Barcelona flourish with arts.''
Mr Bulum and his family are involved in the redevelopment of the northern end of Lonsdale Street and own the building.
''I understand safety and regulations but being extreme with over-the-top regulations, being over-sensitive and trying to pad every situation kills the soul of what makes the arts raw and rich, and turns everything into McDonald's.
''Support these individuals because they make your city an international city,'' he said.
Environment and Planning Directorate construction services director Craig Simmons said adaptive reuse of spaces happened regularly in the ACT.
''Some buildings present particular challenges and they need to be addressed,'' he told ABC Radio.
''We are as keen as anybody else to see projects like this get up. We are happy and [able to facilitate] within the legal framework that we have, but what we can't do is go below minimum compliance.''