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Scarborough beachfront businesses 'close to going under' amid construction zone

Heather McNeill

Scarborough beachfront businesses struggling to keep their doors open amid heavy construction have appealed to the state government for help.

Wild Fig Cafe owner Chris Burke said his popular eatery was losing around $20,000 in revenue each week since redevelopment works around the beach began nine months ago.

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He said he and other businesses impacted by the development's road and car park closures were struggling to stay afloat.

And with construction due to continue for another year, there's little relief in sight.

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"Where the swimming pool is getting dropped in, that all used to be a car park, so we had about 600 bays that were for direct use of us and the beach," he said.

"Since construction started in April last year, that was cut to around 130, and with recent works... that's been cut down by another 40 or so bays... so our parking's been dropped by 80 per cent.

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"If you compare, we would be doing in a typical week 1000 less covers this year than the same period last year."

Other businesses along the beachfront were also doing it tough, according to Mr Burke, with promises from the City of Stirling of double the foot traffic once the development is complete doing little to help ease the financial burden.

"What we're really after is a support package to help us get through because I am aware of about half a dozen business down there that are on a razor's edge of shutting the doors," he said.

"Premier Colin Barnett was in the media the other day saying we'll be the big beneficiaries once it's finished, but if I was to put it to you, how would you go if from tomorrow you're not going to get paid for your job for the next 20 months, you can't change jobs and if you do you're going to lose your home and everything, and at the end of that 20 months - if you get there - you might see a 30 per cent pay rise, would it sound good to you?

"I've got four kids... private school fees and everything else to pay, it's brutal, it really is."

The Metropolitan Development Authority is managing the $100 million redevelopment.

In response to concern from local businesses, its chief executive Kieran Kinsella said businesses that felt they were entitled to make a compensation claim, could do so.

"Where businesses feel that they have a claim for compensation, they must provide evidence of loss in the first instance, including audited accounts ," he said.

"The evidence will then be subject to review and the MRA will consider each case on a case-by-case basis."

He said the MRA and builder Georgiou Group had ensured construction would be completed in the shortest possible timeframe.

"Whilst all efforts will be made to minimise impacts on local businesses this must be balanced against the community benefits of the revitalisation project," he said.

"A significant awareness campaign was run last year to support local businesses and ensure the broader community and visitors were aware Scarborough remained open for business."

Businesses at the Barrack Street Jetty in Perth suffered similar drops in revenue due to the development of Elizabeth Quay in the four years to 2016.

Those outlets, however, were granted rental relief from the government, which owned the buildings.

The buildings along The Esplanade in Scarborough are privately owned.

Lawyer John Holland, who is assisting some of the struggling Scarborough business owners, said the law needed to be changed so the burden of uncontrollable drops in revenue was shared between businesses and landlords. 

Mr Burke and others have been in discussions with their landlords to seek rental relief.  

"We've reached out to the landlord, we're trying to negotiate with them, but the thing with dealing with the landlord is they have no obligation to do anything," he said.

"As far as the government is concerned, the government has nothing to do with the lease itself but we've been chasing the MRA... trying to get something done.  

"The government seems to get quite hung up on the term compensation but realistically what we're after is support."

Shadow small business minister Kate Doust labelled the management of the outlets in the areas by the state government as "appalling" and called for more to be done to ensure shops can survive the construction period.

"I think the way this has been managed by the MRA and the government is just appalling, the fact that parking and access has been removed and that nothing has been put in place for remediation to enable their customers to get to them," she said.

"They hadn't taken into account the impact on these businesses.

"They need to make sure these businesses can survive until this project is completed."

From February 20, traffic flow into the area was further restricted by the closure of a part of the West Coast Highway to allow for construction works.

The MRA has leased 200 car bays from the Wilson car park on Manning Street for free public use.

It said it will continue to work with businesses on the beachfront throughout the construction phase.