Central Auckland businesses suffer under months of construction, roadworks

Businesses in Auckland's CBD are questioning whether they can survive, with some saying patronage is down as much as 70 percent due to roadworks and construction.

A bus corridor upgrade on Wellesley Street is just the latest project in the city centre, which has been subject to ongoing disruptions since the City Rail Link got underway six years ago.

It comes as prominent department store Smith and Caughey and cosmetic giant Sephora announce their departure from the city.

Currently, Wellesley Street - which intersects with Queen Street - is peppered with metal fences, road cones, workers in hi-viz and dug-up footpaths.

Remedy Cafe has been operating opposite the Civic Theatre since 2010, but with the major works at the front of the cafe, owner Rich O'Hanlon wonders if its days are numbered.

"The cones have only been out the front since April and ... it's getting a bit desperate," he told First Up.

Cafe revenue is down 40 percent. Usually, the footpath is full of seated customers and has a bustling takeaway window. Now, the footpath has been torn up as part of a bus corridor upgrade.

O'Hanlon already had to restructure his business since construction began in April, laying off two staff and cutting back hours for the remaining 10.

The project is expected to take 18 months, and O'Hanlon said it was a bitter pill to swallow.

"We thought we were through it. We thought we're over the other side, you know, back to pre-Covid levels of business.

"The city was looking good, there was good vibes and unfortunately in the name of progress, it's been turned into a building site for the Wellesley Street bus upgrades."

Across the road from Remedy Cafe is the Civic Convenience store, which Emran Al Dablan has run for a decade. The construction work has hit his business hard.

"Our sales dropped around 60 to 70 percent. We are really struggling, and nobody is looking at us or even talking to us from who's responsible," he said.

"I honestly [have started] thinking about closing the business. I don't think anybody would be interested in buying this business, since it's going to be like that for a while."

In a joint statement, Auckland Council and Auckland Transport acknowledged the level of construction had had a significant impact on neighbouring businesses, and said a programme including microgrants of up to $3000 was available to support businesses under the Local Government Act.

"We are delivering at pace, to ensure this area is complete and free from significant public construction when [the City Rail Link] opens.

"As far as possible, we are carefully planning and sequencing this construction to minimise the severity and duration on any one area at a given time, and reducing activity during major events and key shopping periods.

"The construction team on Wellesley Street are committed to reviewing their construction programme and methodology, to see how they can further reduce the impact and duration of work immediately outside these affected businesses, where possible."

The council said it did not offer compensation or rates relief in such circumstances, as the Local Government (Rating) Act 2002 limited its ability to change business rates, once set.

Imran said he had had no contact from the council or Auckland Transport. When First Up told him about the $3000 microgrant offer, he was not convinced it would help.

"Even if they're gonna offer $3000, it doesn't cover half of the monthly payment I'm doing on the rent."

O'Hanlon said he was all for improving the city, but the lack of financial support for business owners was distressing.

"I think if you're having a $26.7 million project - and I'm sure these guys get paid a good amount of money to do this, and Auckland Transport gets what, a revenue of $2 billion plus a year - surely there's money somewhere to actually help local businesses survive this."

Auckland Council launched the midtown Small Business Support Programme in May 2023. Remedy Coffee received a council grant in 2024, which enabled them to purchase new signage, and this was displayed on the metal fences around the roadworks to say the cafe is open.

The council said more funding would be available in 2025 and 2026.

But O'Hanlon said it would not be enough to cover his losses.

"I'm not trying to say, 'Give us free money' ... But putting up a poster isn't enough."

Heart of the City chief executive Viv Beck said she understood business owners' frustration as they battled through a difficult period.

"[A microgrant] doesn't go anywhere near far enough to address the financial and other impacts people are dealing with.

"I understand that [council's] financial situation is strained, and there's a question of precedent, but we have been concerned for many years about the welfare of businesses and we believe with the City Rail Link, for example, that there are still deep grievances.

"People have not been treated in a fair way ... and they have reason to still feel as if they haven't been looked after properly."

The $3000 microgrant was a start, but real action was required, Beck said.

"This is due to go for about 18 months. That's a very long time for a business to try and survive, particularly in an environment where we've had concurrent projects.

"So it's not just one project, it's multiple projects, the impact of Covid - which has been very, very severe in this area - and then on top of that, obviously, the cost of living, which is affecting a lot of people."

At Remedy Cafe, Rich O'Hanlon said he was trying his best to be optimistic.

"Is there light at the end of the tunnel? I hope so, because I would love to be here to see this happen. Not because I think it's going to be amazing. Maybe it is, maybe it's not.

"But it would be nice to actually see it when all the cones are gone, when all the fences are gone.

"And the construction workers are lovely people. They're banging. But let's see it when it has gone, and can we survive the test of time to see that? I don't know man, I really don't know."

Auckland Council said when the Te Waihorotiu Station opened, Wellesley Street would become a major interchange and arrival point for thousands of people coming into the city by train.

The new gateway to the city would be transformative for the Arts Precinct around the Aotea Centre, it said.