A popular Nelson cafe and gallery has announced its closure, after a dispute with the landlord and ongoing roadworks made it untenable to continue.

Red Art Gallery & Café owners Ant and Suzi Stevens say after nine years in business, its closure was forced after the landlord chose not to renew the lease, a devastating blow after months of roadworks on the two adjacent streets had seriously impacted revenue.

The work, part of the $78 million Bridge to Better project, has seen water pipes and other infrastructure along the the length of Bridge Street replaced, causing disruption to a number of businesses since it first began last year.

The couple said the decision to close in September was not the outcome they wanted, especially on the back of a tough few years,

"It's just heartbreaking, I just feel like I'm losing a child to be honest, it's just been my baby for so long," Suzi said.

The business had survived a global pandemic, a recession and roadworks which effectively left them an island, with the cafe and gallery entrance hidden behind fences, trucks and diggers.

Bridge Street and Haven Road either side of the business have been closed for months while the roads are ripped up and pipes replaced, with customers having to walk down narrow, uneven gravel paths between temporary fences to reach the business.

The gallery represented about 60 artists, most of them from Nelson and Tasman, and they had taken on more after [https://www.rnz.co.nz/national/programmes/ninetonoon/audio/2019034008/nelson-gallery-shop-stops-stocking-the-work-of-40-local-artists the Suter Art Gallery made the decision to stop stocking the work of around 40 local artists], after getting advice from external retail specialists.

Since announcing the closure on social media, the couple had received hundreds of comments in support.

The cafe was full on Friday morning when RNZ visited. Within an hour, it had made as much money as it had over the previous two days combined.

"We knew there would be strong support, but not the way it's been with the messages, with the people coming in," Ant said.

"Love and compassion and heart will beat greed any day."

He said the council told the couple they would be the "most impacted business" given their proximity to the roadworks, but there had been "zero talk of compensation or help in any way", except to be asked whether they had two hard years in them until the upgrade was complete.

"It'll be wonderful for someone else, but it won't be us," Ant said.

Council agrees to defer rates if landlords come to the party

Nelson mayor Nick Smith previously said he had met with a number of "very distressed" business owners who were feeling the pressure of the ongoing roadworks.

Staff had gone to "tremendous effort" to try and minimise disruption in the city by promoting businesses, he said.

Smith acknowledged the work was "incredibly disruptive" but said it was essential to renew and upgrade infrastructure that, in some places, was over 100 years old.

Once complete, Bridge Street was tipped to be a "people-focused corridor" with utility services capable of supporting inner city development.

At a council meeting on Thursday, elected members agreed to allow affected businesses to defer rates from the current year, with repayments split over the next three years, if landlords agreed to provide the equivalent financial relief to the tenant.

Nelson Tasman Chamber of Commerce chair Venus Guy said it was disappointing to see the closure of long-standing local businesses.

"Red Gallery has been part of our city centre, and our thoughts are with the owners and everyone affected by this decision."

She said while the Bridge to Better project was an important investment in Nelson's future, the major infrastructure work placed very real pressures on businesses during construction.

"It is essential that we continue working together to minimise disruption, support affected businesses and remind our community that our city centre remains open for business.

Central city businesses feeling the hurt

Longstanding cafe and food store Prego Mediterranean Foods & Comida Cafe shut its doors in June, and the owners said at the time that the [https://www.rnz.co.nz/news/business/625679/road-closures-and-rising-costs-force-closure-of-nelson-businessongoing ongoing roadworks were one of the factors in its closure].

Further down Bridge Street, Pizzeria Bella owner Yusef Corten said he thought more could be done to support businesses affected by the infrastructure works.

At lunchtime on Friday, his restaurant was empty and the noise of roadworks outside made it hard to be heard when speaking.

He had organised a meeting with about 30 Bridge Street business owners that were also struggling around two months ago.

He said the rates deferral scheme made little difference. It gave relief of about $80 per month, but would have to be paid back in the years to come.

Corten, who had owned and operated hospitality businesses in Nelson for more than a decade, said he bought Pizzeria Bella a year ago. He started out with nine employees, but was now down to three. Only he and his son were working full-time, with debt that kept rising.

Pizzeria Bella's revenue was down 80 percent since the roadworks began. On Tuesday, Corten made $300 between the lunch and dinner services. His accountant had told him he needed turnover of $2000 a day to survive.

"Every day I am more negative, more negative."

Corten said two businesses had closed and it was possible that more would follow.

Once the work was finished the council would have a beautiful road but an empty street, he said.