Struggle street: $3.4 billion City Rail Link refuses Auckland businesses' cries for help

Wednesday, 3 April 2019

City Rail Link construction is affecting businesses on central Auckland's Albert St (video first published April 2019).

A stoush between struggling businesses and the company behind Auckland's $3.4 billion City Rail Link is escalating, with one pub claiming to have lost millions of dollars since works started.

Fired up Shakespeare Hotel owner Sunny Kaushal estimates at least half a dozen Albert St businesses have shut up shop as a result of CRL works.

The 120-year-old pub, which Kaushal took over nearly two years ago, is just one business in dire need of financial help.

But City Rail Link Limited (CRLL), which concedes work on Albert St is behind schedule, has continued to bat away requests for compensation, instead suggesting businesses seek legal advice.

Shakespeare Hotel is racking up losses as CRL works on Auckland's Albert St surge ahead.

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Documents supplied to Stuff show Kaushal wrote to CRLL back in May 2018, laying out Shakespeare Hotel's grim financial position and requesting CRLL compensation be considered urgently.

'In the last quarter (Jan 2018 – Mar 2018) itself it has lost about $125,000,' the letter reads.

'And in the recent one month i.e. in the month of April 2018 the sale was down by about $55,000, making a loss of about $39,000 in one month.

Signage tells pedestrians Albert St is still open for business, but some are still struggling.

'The business has already lost approximately over $1.5 million since the project started.'

He requested CRLL consider 'appropriate compensation'.

Shakespeare Hotel owner Sunny Kaushal has accused central and local government of not caring about the struggles of Albert St businesses.

In a short response, CRLL, which is jointly owned by the Crown and Auckland Council, said the project was 'fully consented for construction and we work within these parameters.

'If you feel we have not done so and/or wish to pursue a claim under the Public Works Act, we recommend that you obtain independent legal advice to assist you through the process.'

CRL works are causing problems for businesses on Albert St, with one prominent owner claiming some businesses have been forced to close.

Kaushal attacked CRLL's response as 'blunt and irresponsible'.

His requests to Auckland Council and Auckland Transport for financial help were also turned down, he said.

Meanwhile, businesses along Albert St were dying 'a slow death everyday'.

Some shops had closed their doors because they 'could not sustain' themselves, he said.

'Despite the deliveries that the project will make, this has seriously affected the local businesses.

'They are the ones paying the price. If everyone is getting advantages of this project, why are these people subjected to this kind of unfair treatment?'

Kingna Yu, who owns Rakuten Japanese Cuisine on Kingston St, said she purchased her business for $280,000 in 2014.

She has since tried to sell the business for as little as $80,000 after becoming sick with breast cancer, but had failed to find a buyer.

'Nobody wants to buy it because of the roadworks,' she said.

'I say 'oh, they are nearly finished' and almost everybody says, 'who knows when they are going to finish'.

'I've lost so much money. I think everybody here works really hard for our living – $200,000 is really big money for us.'

Businesses in and around Albert St should not have to 'take all the bad stuff by ourselves', she said.

'I think council should be involved, CRL should be involved – we know it's a big project, it will benefit others including us but the first thing is we need to survive.'

Kaushal acknowledged CRL would be 'really great for Auckland City'.

'The whole nation is going to benefit, you know, this is the financial hub of the country and we want this to happen.'

However, he said Auckland Transport, CRLL, Auckland Council and central government did not care, or 'even shed a crocodile tear', for the struggling Albert St businesses.

'They haven't come forward asking: 'hey guys, how are you, are you surviving'?' he said.

'Auckland Council is only 100 metres away from the epicentre of this mess and none of the councillors or officers have cared to visit.'

CRL, a 3.45 kilometre twin-tunnel underground, is due to open in 2024.

In a statement, CRLL chief executive Dr Sean Sweeney told Stuff the company took numerous measures, such as good communications and activation events, to manage the impacts of the project on businesses.

CRLL's social impact and business disruption delivery work plan identified ways to mitigate disruptions.

'While CRLL has a responsibility to be prudent with taxpayers' money, the plan makes clear that businesses are able to seek their own independent advice regarding any compensation rights that may be available to them under the Public Works Act if they consider that their businesses have suffered negative financial impact as a result of the project,' Sweeney said.

'The act says that if a land owner would have a right of action under common law, the local authority must compensate the person to the extent warranted by the adverse effects and CRLL would meet its obligations under this act.

'To date, no compensation has been paid to any business.'

Albert St was due to be back to normal by 2020.

'The programme of works is some months behind schedule due to a number of complexities,' Sweeney said.

'There is no delay to the overall completion date of the CRL project which is still on track to be delivered at the end of 2024.'