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Stephen Avenue businesses threaten lawsuit against City of Calgary

Stephen Avenue businesses threaten lawsuit against City of Calgary

Global News02-07-2025
Only a couple of weeks before work is set to begin for the Stephen Avenue Revitalization, a coalition of businesses along the downtown street is threatening legal action against the city for the project.
The group of owners is asking for clarity and accountability regarding the work, saying concerns are growing about what the group calls budget uncertainty, lack of proper planning, and the potential impacts to businesses during construction.
'We are asking for something very simple: engage with the business community and consult so we can all get on the same page,' says Stephen Deere, owner of Modern Steak.
Deere says the group has a list of concerns it would like addressed, ranging from material sourcing and salvaging existing trees, to a failure to address ongoing social and safety concerns in the area.
'We are looking at bigger issues of social unrest, homelessness… so it makes no sense to be doing these big developments right now and making something beautiful when we don't have the systems to support it moving forward,' says Deere.
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The Stephen Avenue Revitalization project, set to begin the day after Stampede and finish by the end of 2026, will see phased upgrades along the entire stretch of 8 Avenue, starting between Centre and 1 Streets southeast. Construction will include replacing underground utilities including a 1910-era water main, surface upgrades in the centre of the avenue, and new soil cells for tree growth.
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The revitalization project will eventually include future phases that see work extending the entire length of 8 Avenue to the Mewata Armoury, but those phases remain unfunded.
The group of business owners says it isn't opposed to the work being done but does have an issue with the timing and manner in which is it being presented, saying they are willing to go forward with a court injunction if needed. The calls for a pause to the project are reaching some city councillors.
'When you hear businesses say our nest steps are to plan legal action, that means they're at their wits' end,' says Ward 1 councillor, Sonya Sharp. 'This is our busiest time of year, why would you want to close Stephen Avenue? Listen to the people that know this area best.'
If the group moves forward with legal action, it would be the second lawsuit against the city because of recent revitalization work. A group of businesses in Marda Loop filed a $27 million class action lawsuit in June for damages caused by a two-year construction project in that neighbourhood, with business owners alleging the work done along 33 and 34 Avenues SW became an impediment to carrying out business.
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Leslie Echino owns two Annabelle's Kitchen locations, one in Marda Loop, the other on Stephen Avenue. She says she watched businesses leave Marda Loop because of the construction and is unsure how her downtown location will survive another project.
'It (construction) hurts my heart, it hurts my business, it hurts our staff and to see that coming downtown… I can't live with the construction in front of my building for 15 months.'
In a statement, the Calgary Downtown Association says 'the utility work is desperately needed, and (it) makes sense to also invest in street use, function and look,' adding it's been 'advocating strongly for an expedited construction schedule and to limit impact on its members.'
Calgary's mayor is highlighting the important infrastructure work that will be done, including replacing a 1910 water pipe running along Stephen Avenue. But Mayor Gondek agrees the businesses' concerns should be addressed during the project planning.
'Especially when we are hearing from fold that times have been tough over the last few years, let's not sacrifice the ability for people to frequent these businesses,' says Gondek. 'That's what I need to see from administration, is a proper plan that addresses the concerns that businesses have brought forward.'
The City of Calgary did not respond to Global News' request for comment.
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