Tony Prior says a temporary access road for trucks which suddenly appeared in front of his shop in the city left him in shock, boiling inside and unsure whether he will still be in business when a major apartment project is completed next door.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
He and his wife Erika bought the Subway sandwich shop in Civic's Canberra House building in 2012, using their house to secure $500,000 for the purchase, because they saw potential for growth.
Opening seven days a week with a staff of 18, they averaged $16,700 a week in sales in 2013 and about $15,900 the following year. Their growth in 2012- 2013 was 17 per cent, and 8 per cent in 2013-14.
Their landlord and developer, the Morris Property Group told them in July 2013 of redevelopment plans and they negotiated a new site, initially on the northern side of Canberra House, but ultimately on the southern side, about 30 metres from their existing shop. They were the last business to leave and relocate.
However, redevelopment to create the 16-storey Mayfair apartments, and a truck access road flanked by a two-metre high timber wall that sprung up in front of the shop's new location has cut their trading and caused them to lay off staff.
"We were shown plans for the site which showed an outdoor eating area and garden beds in front of our new store," Mr Prior said. Documents indicated work would be finished by November 2014.
The shop closed for five days before the relocation, during which time kitchen benches and fridges were transferred across to the new place, and tiling completed. A week before they were due to open at the new location, a truck access lane and two-metre wall was built in front of the sandwich shop, which Mr Prior said blocked visibility.
After 14 weeks of heated arguments a chain mesh fence replaced the timber fence.
In a statement MPG Capital Partners says it has been negotiating in good faith with Mr Prior for several months.
"Notwithstanding that the company has complied with its obligations under the lease, it has offered Mr Prior assistance with rent free periods, concessional rent and other amounts in addition to paying the full cost of relocating the business which the company was entitled to do under the tenant's lease."
The two parties have been unable to reach agreement and the lease dispute is now before the ACT Magistrates Court.
Mr Prior says almost overnight their turnover plunged to $9300 a week and they have been trying to claw back their trade. "But once you lose a customer, it is very had to get them back," he said.
"I'm boiling inside. This has had a terrible effect on my family, wrecked our Christmas. We are doing unprecedented hours."
