Small business owners have warned the Dickson shopping precinct could become a "ghost town" as more than 150 parking spots are potentially lost during the development to bring Coles and Aldi to the site.
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Professional and trade services, as well as popular restaurants on nearby Woolley Street, could be worst hit by a related loss of business.
The ACT government, which announced the development in March, has said it will talk to nearby landowners in an attempt to offset the ripping up of the 230 car spaces on the corner of Badham and Antill streets, adjacent to the Woolworths supermarket, with at least 100 temporary spaces next to the Dickson Pool already confirmed.
Jason Mann, owner of Jhay the Cobbler in the Dickson Chambers, said the 80-plus people at a June 16 meeting with developer representatives were told there would be about 25 construction workers on site for the first three months, and at the peak up to 200 workers likely to be looking for a park of their own.
"The fact they're taking away that number of car parks, and even more than that, the view that Dickson is a no-go zone, this place is going to be a ghost town for two years, basically," Mr Mann said.
"I think this area in 10 years will be fantastic, but in the meantime it will be a construction zone."
Dickson Denture Clinic owner Garry McDonald said the construction would lead to a downturn in his business, with an estimated 70 per cent of his clients aged 60 years and older.
"A lot of our patients are elderly, a lot now have walking frames and walking sticks, and even today they complain about trying to find a car park close enough," Mr McDonald said.
A nearby restaurant owner said the 230-space car park was popular with evening diners, and often full for the critical Friday and Saturday night trade.
Tradies Group chief executive Rob Docker said the Dickson club had 300 underground spots and, while vacancies varied, often the car park would only be about 70 per cent full.
"We're the big boys in Dickson, we do have facilities, and we want to make the necessary contribution we can, but it can't be at the expense of my membership base [of 30,000]," he said.
Mr Docker said the car park design also meant people could not go to Woolworths and bring back a trolley.
The ACT Land Development Agency's Chris Reynolds said negotiations were continuing for access to the Tradies Club's underused spaces, and the government would also be speaking with owners of the former ACTTAB site on the corner of Challis and Antill streets – which recently had an application for 116 parking spaces approved – to look at the timing of that development.
Chief Minister Katy Gallagher said the government would look at other options that might help alleviate parking pressure.
Mr Reynolds gave no specific start date but said Coles was targeting the lodgement of a development application to allow construction to begin as soon as possible, with an expected commencement date "late in 2014".
"Once completed, there will be parking for around 700 cars, of which approximately 180 will be for the residents of the apartments that are part of the new development," he said.
"More than 500 spaces will then be available for public use, which is more than double the existing number."