Businesses consider legal action against Wellington City Council for disruptive Civic Square construction

Businesses near Wellington’s Te Ngākau Civic Square say they’re being “suffocated” by the council, with disruptive construction work “driving people out of the area”.

Civic Square is undergoing major redevelopment, including seismic strengthening of the Central Library and Town Hall and demolition of the Civic Administration Building. The library is scheduled to reopen in 2026.

Rhys Kaan, owner of cafe and gaming store Caffeinated Dragon Games, at 70 Victoria St, directly opposite the library, says he’s now considering legal action against Wellington City Council.

He said dust and fumes from the site were affecting the health of his staff, who suffered headaches, stomach issues and anxiety attacks. He was concerned the council had not considered the impacts of the construction on nearby businesses.

Caffeinated Dragon Games is directly opposite Wellington's closed Central Library.

In an interview with the Herald, Kaan said revenue had been down about 80 per cent on some days but the council had been unresponsive to his concerns.

He had asked for rates relief, financial support and help to relocate the business, all of which had been declined.

“I think it goes beyond not being supported. We’re basically suffocated by the council – there’s no regard whatsoever for the local impact.”

The reduction in customers had put his business on the brink of closure.

“We’re having to consider whether or not we’re going to exist come Christmas,” he said.

A Wellington City Council spokesperson said it had received a noise complaint from Kaan’s business at the beginning of last week.

“As a result, we’ve been talking to the main contractor to get a reduction in loud construction noise.”

Staff involved in the Civic Square redevelopment had since been in communication with Caffeinated Dragon Games, the spokesperson said.

Nikau Cafe, in the City Gallery in Wellington's Civic Square, says construction work has "decimated" its customer numbers. Photo / Mark Mitchell

It comes after similar complaints from Nikau Cafe, which has operated in the square for more than two decades and previously told the Herald the disruption had “decimated” business.

City Gallery, which houses Nikau Cafe, had to reduce its opening hours late last year and announced last month it would be leaving the square for two years because of “disruptive construction work temporarily forcing it out of its iconic building”.

Wellington’s Civic Precinct includes the Central Library (foreground), Town Hall, Municipal Office Building, Civic Administration Building, Civic Square, Jack Ilott Green and the Michael Fowler Centre. Photo / Mark Mitchell

Nikau Cafe director Shelley Addison told the Herald the closure came as a shock and had caused foot traffic into the cafe to plummet.

Like Kaan, the business was considering legal action against the city council, as the building’s landlord, over its right to remain on the site and claims that it was not told the gallery would be leaving.

“We’re holding out for as long as we can,” Addison said, acknowledging the threat of closure was real.

A city council spokesperson told the Herald it had received “no legal documents or notices of legal action from either Nikau or Caffeinated Dragon”.

Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in politics, local issues and the public service. Ethan is always on the lookout for a story and can be emailed at ethan.manera@nzme.co.nz or messaged on X (formerly Twitter) @ethanjmanera