Furniture company managers who asked the council for a rent rebate after building work disrupted their trade were stunned to be told their bill was set to double.
North Road Timber, which has traded from premises in North Road, Brighton, for 19 years, was told its rent was increasing from £18,000 to £40,000 a year as part of a city council review.
It fears it could be forced to move out of the North Laine if the council refuses to reduce its demand.
The rise comes despite traffic chaos in the area, which the firm says has cost it a significant amount of trade in recent months.
Furious owner Terry Shippam claims Brighton and Hove City Council is being disloyal to firms which supported the North Laine before it became fashionable.
New developments, including The Argus loft redevelopment and the Jubilee project, are threatening to change the area beyond recognition and rising rents have already driven out several businesses.
Mr Shippam said: "We are good tenants who have paid our rent on time for almost 20 years but the council has shown us no loyalty. It is a nightmare.
"In the last year or so the building work in the area has damaged our trade.
"The roads are often at a standstill. The main road used by customers to collect their goods has been closed for a year now, even though it was supposed to be reopened in June so we have to use the front door, which backs traffic up the road.
"One of the builders' lorries even reversed into our wall, shaking the whole shop.
"We've had a building opposite that was infested with rats until the council finally decided to do something about it. But when we mentioned a rent rebate, it didn't want to know.
"Now because of the redevelopment of the area, the council thinks the place might be worth a bit of money."
The firm sells pine furniture and items including doors, windows, staircases and fire surrounds both to traders and the public.
Mr Shippam said the rise could force him to relocate.
He said: "It's a phenomenal rise. We were told in March and have been trying to negotiate to get it down ever since."
Robert Paine, a surveyor with Graves Jenkins, who is negotiating on Mr Shippam's behalf, said: "The council has come down to £35,000 but we believe comparative rents in this street mean a fair rent would be more like £28/£29,000. I think the next stage will be arbitration where an independent third party will decide the appropriate rent.
"The council is arguing the whole area is improving but Terry's lease is quite specific, limiting what his business can do. That limits the amount of income he can achieve.
"Such limitations protect diversity in the city and mean every shop does not become a cafe bar but the council wants diversity and the rents up as well.
The council said it was "flexible" and would consider all grounds put forward by the tenant.
A spokeswoman added: "Rental values in the market have gone up since the lease was granted and reflect changes in the surrounding area."
Last month The Argus told how Practical Books was being forced to close after 40 years following a similar rent hike.
The bill for the bookstore in Western Road, Hove, almost doubled, leaving owner Yvonne Norman with no choice.
In July, we told how recycling co-operative Magpie was hit by a 200 per cent rise. The rent for its depot at Saunders Park in Lewes Road - its base for ten years - was to increase from £5,000 to £15,000 after a review by landowners Brighton and Hove City Council.
The co-op, with more than 4,700 customers, said it would struggle.
Tuesday September 16, 2003
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