Redevelopment work has Stephen Avenue businesses worried

Business owners on Calgary's historic Stephen Avenue say they're worried construction set to begin later this month could put them out of business.

Tensions are rising on Calgary’s historic Stephen Avenue, where several business owners are concerned over their chances of surviving through a major redevelopment project set to begin later this month.

The community’s angst comes in the wake of a $75-million class-action lawsuit recently launched by Marda Loop businesses over the fallout from a mismanaged two-year construction project.

According to the city, work on Stephen Avenue is scheduled to begin on the 1 Street S.E. block of the street on July 14, just one day after the Calgary Stampede, and continue westward to Mewata Armoury over the next 18 months.

‘Ghost town’

“The damage to the businesses will be irreparable and over time, Stephen Avenue will become a ghost town,” said Stephen Deere, owner of Modern Steak. “It could be another 17th Ave. or Marda Loop (scenario) -- maybe times 10.”

“We’re here to ask the city to stop the redevelopment for the time being until we can get a plan that makes sense for all of us,” Deere added. “The city has not engaged directly with the business community and has upped timelines and increased the urgency of this project without engaging any of the stakeholders.”

The focus of work in 2025 will be to replace underground utilities, including water, storm and power, along with new soil cells to support healthy tree growth and surface upgrades along the centre of Stephen Avenue.

Design plans also feature three-metre-wide pedestrian paths which will be maintained on the north or south sides of the street during the construction, along with the creation of mid-block crossings.

Staged approach

Deere isn’t opposed to the renovations but says the city hasn’t considered other solutions including taking a staged approach that won’t have such a significant impact on business owners.

A pitch to start work at the west end near Mewata Armoury, where it’s likely to have less impact also hasn’t been considered according to Deere.

“Nothing has come back from the city on those, but we have made recommendations,” he said.

“We do want this to move forward. We just don’t want it to move forward in the manner that we have.”

Deere adds that if several businesses close down, it will also impact hundreds of thousands of Calgarians in the process.

“That’s when crime moves in, and the biggest issue that’s going to happen is there’s going to be no business tax base available because all these spaces will be vacant and it’ll be shifted on to residential.”

“So as much as this feels like a commercial or business issue,” he added, “this is really a Calgarian issue.”

Project design, safety and timing under scrutiny

Business owners raised concerns not just about timelines, but also the project’s design and procurement decisions.

Among the issues that concern local business owners are the alleged importation of granite from Vietnam instead of using local products.

Other concerns include the removal of trees, the lack of a firm budget beyond Phase 1, lack of easy and affordable parking for visitors and downtown workers and a failure to address ongoing social and safety issues in the area.

Leslie Echino, owner of Annabelle’s Kitchen, says her previous experience in Marda Loop is a cautionary tale.

“I endured over two years of construction in Marda Loop. I think out of over 170 businesses, 40 have closed, citing construction,” she said. “It hurts my heart, it hurts my business, it hurts our staff, it hurts the entire community.”

Now she’s bracing for the same uncertainty on Stephen Avenue.

“Do you think I want to re-sign my lease right now? I’ve been 17 years on Stephen Avenue. I’m very hesitant to sign a lease because I don’t know if I’ll be here in three years.”

“We just want a proper plan,” Echino said. “Fifteen months plus of work on this block? I really don’t know if it could be three years.”

Suzanne Baden, the managing general partner for Klein/ Harris along Stephen Avenue also weighed in, calling businesses in the area survivors – of the 2013 flood, COVID-era shutdowns, and now Trump’s tariffs – but the timing of launching major construction work right after Stampede could be devastating for the community.

“For the city to think that on July 14 our revenue stream is done down here, it’s just the opposite,” Baden said. “This is our peak tourist season, and we need to capitalize on it.”

“We want to work with the city, but this has been something that’s gone from a pie in the sky notion to shovels in the ground in a matter of months for us, and at this point, we’re not getting the cooperation we feel (we need and deserve) from the city.”

Business owners are also concerned that with the Olympic Plaza redevelopment going on, the Arts Commons transformation and the Glenbow Museum project all occurring at the same time on Stephen Avenue, the timing for a major street revitalization project couldn’t be worse for them.

Councillors weigh in

Ward 1 Coun. Sonya Sharp said she’s heard enough to ask for an immediate pause to summer construction on Stephen Avenue

“When the city is a disruptor—which is what I would call this—it doesn’t seem like there is a proper plan in place,” she said. “It is not acceptable. When you hear that businesses say their next step is legal action, that means they’ve come to their wit’s end.”

“I’m advocating for a pause on this project for our summer months—absolutely,” she added. “This is the time for our city to shine, let’s not be disruptors for them.”

Sharp also flagged safety concerns with the proposed materials. “We live in a winter city. Things like granite and marble are not conducive to our weather, they’re slippery, it’s dangerous.”

Ward 7 Coun. Terry Wong, who represents Stephen Avenue, said engagement has been ongoing but admitted more clarity is needed.

“We’ve had conversations with the merchants, we’ve put questions back to administration asking: is there a way to delay, alter this schedule, take a different construction approach?” Wong said. “I definitely don’t want to hurt businesses.”

Wong added that the construction timeline is complicated by other nearby developments. “Behind you, we have two other projects going on right now,” he said, referring to the Glenbow Museum and Olympic Plaza transformations. “We need to take a look at all of this from a portfolio perspective.”

Wong said consultation and communication on issues of construction are instrumental for businesses and the city working together.

“The City of Calgary and our development industry and our merchants and our community and our residents have to go through these projects as a journey together,” Wong said.

“We need to collaborate… so that we know every step of the way who’s doing what, why is it being done, and what the implications are.”

CTV Calgary has requested a response from the City of Calgary, but has not yet heard back.