Vape shop warning as bid to fill vacant buildings denied
A last-minute bid for funding to boost nightlife and tackle losing “20 new business activations each and every year” has been denied by Adelaide City councillors.
Adelaide City Councillors have voted against a proposal to increase funding to boost night-time activity and reduce vacant CBD shops at Tuesday night’s Adelaide City Council meeting.
The motion, presented by councillor Alfredo Cabada, requested $950,000 to the Adelaide Economic Development Agency (AEDA), with $300,000 allocated for West End business growth, $300,000 to support AEDA’s priority initiatives, $250,000 to boost night-time activation and $100,000 for Renew Adelaide to be included in the annual budget.
It included a 12-month freeze on outdoor dining permit fees to provide cost-of-living relief for hospitality businesses.
Renew Adelaide chair Gino Luglietti presented to the council chamber on Tuesday night “in strong support” of a funding increase.
Renew Adelaide, launched in 2010, activates underutilised property across the Adelaide CBD by offering a rent-free period to emerging business ventures spanning hospitality, arts, retail and offices.
“The cost of doing business has grown enormously. Renew Adelaide has tightened its belt at every single turn, reducing staff, absorbing rising costs, and continuing to deliver record numbers,” Luglietti said.
“But there is a cliff. There is absolutely a cliff with our Review Adelaide. Our CBD will lose an estimated 20 new business activations each and every year, and the jobs that go with them.
“The economic output lost alone would go into the many millions, and more than 1500 people here in South Australia with a dream left in limbo. The only thing to gain from Renew Adelaide not functioning is more vape shops.”
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According to Luglietti, Renew Adelaide created 45 jobs and supported 110 jobs in 2024. In the space of two years, it created a further 144 new jobs and supported 329 new jobs.
He also said the organisation returns almost $14 for every dollar of public funding invested.
“A yes to increased funding for Renew Adelaide is you saying a yes to jobs, to vibrancy in the CBD, to entrepreneurship, backing people with a dream, and keeping creative talent here in the CBD,” Luglietti said.
Deputy CEO of the Australian Hotels Association SA Owen Webb also told councillors last night that hospitality operators were facing “low levels of business confidence and unprecedented rising costs”.
“Businesses are facing simultaneous cost increases from wages, utilities, insurance, and supplier charges, while consumer spending remains subdued,” Webb said.
“We support the motion to remove outdoor dining fees as we see it as a practical measure within the council’s control that can provide immediate relief and encourage further investment in outdoor activation.”
Cabada presented the motions to council for a business activation and support package to be included in the annual budget two weeks prior to budget adoption.
“This motion is about helping businesses in the city that are currently struggling. This motion is about trying to activate our CBD,” Cabada said,
“Many businesses are crying out for help. We’re looking to increase the rates to 5.6 per cent and yet we’re doing nothing to help the businesses in our community that elected us to represent them.
“Many businesses are here now because they need our support now more than ever. We have meeting after meeting after meeting and yet we achieve nothing.”
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He said the $100,000 would allow Renew Adelaide to continue its role in activating the rising number of vacancies in the CBD.
“They’ve been doing a good job for a long time, and they’re asking for our help to continue activating our city. Now more than ever we should support them,” he said.
“Empty shopfronts do not just affect landlords, they affect neighbouring businesses, public safety, investor confidence, street appeal, visitor experience and the overall reputation of Adelaide.”
But councillors voted against the motion with Deputy Lord Mayor Carmel Noon saying it would add unnecessary expenditure to the budget at the last minute.
“I do not think council should now add over $1 million and prescribe how it spends that in the eleventh hour for God’s sake,” Noon said.
“The community has told us cost-of-living, rates, value for money and confidence in council spending are real concerns.
“Before council adds further expenditure, we need to be able to show ratepayers that we have properly tested our productivity expenditure and efficiency.”
Property Council SA executive director Bruce Djite expressed disappointment with the decision, saying it was a practical and targeted motion to activate the city and strengthen the economy.
“Adelaide City Council talks about growth, activation and vibrancy — but when it counts, it votes in the opposite direction,” Djite said.
“Every time a sensible reform is put forward, it’s rejected, and Council falls back on the lazy option: increasing rates.”
Djite said council was “holding back the potential of our capital” and was instead pushing businesses out of the city.
“If you care about how this city grows and how your rates are spent you cannot sit on the sidelines,” he said.
“It’s never been more important for the business community to show up, enrol to vote, demand better, and support candidates that support business and understand the economy.”
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