Prahran traders considering legal action over Prahran’s Cato Square redevelopment

Dozens of small businesses in a Prahran shopping precinct say lives and livelihoods have been destroyed by one blown-out construction project — and now they’re threatening a class action against their council.

Traders furious over Cato Square works say it’s costs them tens of thousands of dollars and 24 businesses have folded. Picture: Valeriu Campan

Furious traders say the redevelopment of Prahran’s Cato Square has completely “destroyed” their businesses, with several shop owners now considering a class action against Stonnington Council.

The Leader understands legal action is being planned by more than 30 traders, who say their businesses have been “bled dry” since construction works to redevelop Cato Square began in January last year.

The $60 million project, which includes more than 9000sq m of open space and two levels of underground parking, has still only partially completed.

The carpark opened last week, but frustrated traders told the Leader the final completion date was shrouded in mystery.

Renowned pastry chef Pierrick Boyer said he was forced to shut the doors of his self-titled cafe and patisserie on Izett St in October after it lost hundreds of thousands of dollars due to construction works.

Mr Boyer confirmed a class action was brewing as traders wanted to hold the council accountable for ongoing disruptions and devastating business losses.

He said traders in and around Izett St had been frustrated as construction workers used the strip as a dumping ground for machinery and tools.

“There’s more than 24 shops that have gone under because of this,” Mr Boyer said.

“We 100 per cent think the council should’ve offered compensation for businesses during the works,” he said.

Pierrick Boyer was forced to liquidate his previous business due to council works. Picture: Josie Hayden

“I had to liquidate, sell my house and I was on the verge of bankruptcy — it was completely devastating.”

“The whole project has been very poorly managed and also met with delays — there has been a lack of carparking in the area, it’s noisy and now a massive crane sits outside the shop.

Mr Boyer, who has now reopened Reverie Cafe and Dessert with a business partner, begged shoppers to support their local businesses.

Babble Bar & Cafe owner Mayur Patel said his business had lost tens of thousands of dollars due to works.

“The roads have been blocked off, it’s so noisy and there’s so much dust that comes into the cafe — it’s really affected our customers,” Mr Patel said.

“It’s also affected our suppliers — they can’t stop or park anywhere and when I asked for signs to be put up around Chapel St to let people know we’re open — the council wouldn’t let us.”

The Leader also spoke to several Prahran Market traders who said their businesses had also been “deeply affected”.

Babble Bar & Cafe Mayur Patel says the works have cost him dozens of customers. Picture: Valeriu Campan

One trader, who asked not to be named, said she hoped the works were completed by Christmas as businesses were desperate for customers.

“We want our customers to come back into the market as a lot of them have disappeared — the market hasn’t been this quiet in years,” she said.

MORE:

WHY YOU SHOULD SUBSCRIBE TO LEADER COMMUNITY NEWS

DRUNK WOMAN TRAPS HERSELF IN CLOSED PALACE FAMILY RESTAURANT

BEST OF MELBOURNE: CITY’S TOP 10 FISH AND CHIP SHOPS REVEALED

Stonnington Ratepayers president Dean Hurlston said the project had completely “destroyed” the retail precinct.

“Chapel St has long been an iconic destination and this council has been responsible for a decline in consumer safety, parking and amenity,” Mr Hurlston said.

Stonnington Council Mayor Steve Stefanopoulos said Prahran Square was an “incredible infrastructure injection” to revitalise the entire area.

“Delivering this transformation of Prahran has required a significant construction program and we understand that it has been disruptive to local businesses,” Cr Stefanopoulos said.

“We have worked closely with local businesses from the early days before the tender, and throughout construction with weekly updates, monthly meetings and familiarity tours.”

He said about two million people would visit every year, bringing in more than $20 million in spending to retailers and property value will increase about 10 per cent.

Cr Stefanopoulos said Prahran Square was on track to be open by December and would include food markets, regular exercise sessions and festive activities.

[e-mail]