Downtown St. John's in turmoil, confidence waning, says business owner

A longtime business operator in downtown St. John's says the city's historic core is in turmoil and confidence has plummeted in recent years.

• School board decision to leave Atlantic Place will save big bucks, says Darrin Pike
• Suncor pulling up stakes in downtown St. John's, moving to suburbs
• Here's your rent: Province paying big bucks for leased space
• Water Street big dig won't begin until 2017
• Water Street to be torn up to replace century-old sewage, water systems

Craig Flynn's dire assessment coincides with news this week that two major employers are making plans to leave the downtown.

He blames poor planning by the City of St. John's and fears about how a massive infrastructure upgrade will affect businesses for the overall sense of unease. 

A economic slump after years of unprecedented growth, and an increased tax burden, are not helping, he added.

"I've been there for 20 years and I certainly see probably the lowest level of confidence right now," said Flynn, operator of YellowBelly Brewery and O'Reilly's Irish Pub.

An exodus in the making?

It's been an especially bad news week for the downtown.

It began with the revelation that oil giant Suncor was pulling its head office from the Scotia Centre on Water Street within the next 20 months or so and relocating to the Kelsey Drive area, off Kenmount Road.

The move will involve 300 employees.

Flynn said this is scary for independently owned restaurants and bars because these employees are primarily young professionals with disposable income who routinely frequent downtown businesses.

He estimated a minimum of 15,000 fewer meals per year will be served in the downtown because of Suncor's move.

"I expect that's on the low side," he said, adding that some of those employees eat out downtown "every day."

The Big Dig affecting confidence

The Newfoundland and Labrador English School District also confirmed Wednesday that, in the coming months, it will vacate Atlantic Place, which is home to 115 board office employees.

This follows a series of high profile closures of restaurants and other businesses in the downtown, and word that still others are moving elsewhere to avoid the snarl expected in 2017 when the city begins digging up Water Street to replace ancient water and sewer pipes.

The project is expected to last three construction seasons, and is causing great angst among many business owners.

Flynn is not impressed by the city's handling of the project, which has already been delayed by a year.

He said there's a lack of information about how the project will unfold, forcing entrepreneurs to act with great caution when it comes to things such as property leases and improvements.

"I think it's incumbent upon council to help try to reverse that," he said of the waning confidence in the area.

The situation in downtown St. John's is vastly different from what it was for most of the past decade, with an oil boom fuelling an extraordinary growth in business, new office buildings and overall investment.

But even the most optimistic supporters of the area are now eyeing the situation with gritted teeth and nervous anticipation about what the next few years will bring.