Stephen Ave businesses threaten legal action over City of Calgary redevelopment plans

Stephen Avenue business owners are threatening legal action against the City of Calgary unless it puts the brakes on planned redevelopment in the area.

The owners of businesses along 8 Avenue in the downtown core are citing a recent $75 million class-action lawsuit put forward by business owners in Marda Loop over the city’s main streets project as one of the reasons for the action.

The group says construction disruptions will severely damage businesses in the area.

“What’s going to happen over time is Stephen Avenue will become a ghost town,” says Modern Steak owner Stephen Deere. “That’s when crime moves in.”

“The biggest thing that’s going to happen is there’s going to be no business tax base available because all these spaces will be vacant, and it’ll be shifted onto residential.”

The city says the Stephen Avenue Revitalization project will bring significant infrastructure and aesthetic upgrades to the historic street. The work will include replacing old underground infrastructure like water pipes, electrical lines, and stormwater systems, as well as renewing “worn-out street surfaces.”

Section 1 of the redevelopment is expected to begin on July 14, the day after the Calgary Stampede ends, from 1 Street SE to Centre Street.

The group threatening legal action say its met with city officials several times over the past few months to voice opposition to the project, but say their questions have gone largely unanswered.

“We want them to come to us with answers and with a plan that makes sense for the communities, for the businesses, for the downtown, and for the city itself,” says Annabelle’s Kitchen owner Leslie Echino.

Ward 7 Coun. Terry Wong says he has raised concerns from the community and business members with the city’s development team.

“We’ve put questions back to them asking them if there’s a way to delay, alter this schedule, and take a different construction approach,” says Wong.

CityNews reached out to the city about the proposed lawsuit and is awaiting a response.

If redevelopment goes ahead as planned, the city is eyeing a 2026 completion date for the project.