2 landmark businesses look to move over high rents — just as the city plans to revive downtown

Landmark downtown Windsor businesses are considering relocating as they say they're struggling to keep up with significant rent hikes. 

But as the city forges ahead on a multi-million dollar downtown revival plan, the area's city councillor says he's pushing to find solutions that protect local business owners while encouraging investment into the area. 

Phog Lounge and Craft Heads Brewing Company— long-standing bars that have hosted countless comedy nights and musical performances — could be moving out of the downtown as they say their shared out-of-town landlord has made their rent unaffordable. 

And one other business owner, who didn't want to speak on the record with CBC News, also said they recently faced a high rent increase that forced them to move a few storefronts down from their original spot.

The news of rent spikes impacting local businesses comes about a month after the City of Windsor approved a $3.2 million downtown plan that aims to boost foot traffic, attract new investors, revitalize local businesses and better support people struggling with mental health and addictions issues. 

But business owners say that negligent, out-of-town investors threaten local entrepreneurs who have spent years putting their own resources into trying to make the downtown a more vibrant place. 

Having been at the corner of University Avenue and Pelissier Street for about 10 years, Craft Heads says it could soon be pouring its last cold one at the location. 

In recent years, the local brewery has rented out three units at the property. One is a taproom where people can enjoy a drink and live entertainment. The other two were renovated for on-site brewing. 

The business says it has invested tens of thousands of dollars into the brewing spaces. 

Craft Heads co-owner Jason Barsotta says the building was recently sold to an out-of-town landlord, who wanted to triple their rent from $3,500 to more than $10,500 a month when their lease was up in January. 

Rent increases are not regulated under Ontario's Commercial Tenancies Act. If there is no tenancy agreement, landlords "can increase the rent by any amount at any time," the province says on its website. 

And while Barsotta says they expected a rent increase, they didn't anticipate it would be that high. They don't think it's a fair rate, he says, considering downtown is currently in "one of the slowest slumps."

"It's unfortunate that through COVID and everything, we've gotten through it. We've tried to put our best foot forward and then we just get kicked in the ribs with something like this," he said. 

"We're just really disappointed that we probably won't be able to see what downtown Windsor can really turn into."