They are claiming it is turning some people away from Invercargill’s central business district.
ILT chief executive Chris Ramsay raised concerns at a recent Southland Business Chamber event, saying the fire-scarred building was not only unsafe but was putting people off the area.
He cited Waxys Irish Pub, whose trading figures are down 20%.
He acknowledged these were tough times for the community, with the cost of living crisis and the impact of inflation. However, the building was interrupting foot traffic, he said.
"We believe the bulk of that 20% is because of the building next door and the containers and just the perception of being closed and inaccessible, and actually not all that inviting.
"I've walked through it personally in the middle of winter. It was pitch black and it was — I won't say scary, it’s not the right word — but you are concerned. You walk through there with not a lot of light. So yeah, I firmly believe it's a health and safety risk in and of itself."
While he understood the building was privately owned, he believed it was up to council to put some pressure on, at least to get a timeline for a resolution of the problem.
He feared that if a solution did not come to the table soon, the future of Waxys could be jeopardised.
"We are coming up to 12 months and I think the frustration from our perspective is there's no clear timelines on, even short term to say, ‘yeah, look, we'll improve the containers’.
"They've got an unsanitary and dangerous buildings policy, right? That policy, I believe, gives them the power to be able to put some pressure on timelines and that is what I am asking."
Vault Hair & Beauty owner Annie Paterson said while she could still rely on her loyal customers, walk-ins had been more difficult as there was no foot traffic in the area.
"We moved from the CBD and it has been good moving here, until that fire happened. It’s just a big eyesore.
"All the clients who are coming here ask about the building and say it is not good for Invercargill to have this building in the middle of the main street in that state."
Invercargill City Council planning and building services manager Anne Duncan said they were working with the building’s owners to reach a conclusion, but did not mention any timeline.
She said under the Building Act 2004, council had deemed the former Briscoe building, on the corner of Dee and Spey Sts, as dangerous and insanitary.
"To date, the owner has been proactive in ensuring the building does not pose any immediate risk to public safety or neighbouring properties.
"The owner ensures public safety through providing regular oversight of the building’s structural integrity, establishment of appropriate safe transitions between public walkways and the containers and implementing a traffic management plan. Council liaises regularly with the owner on these matters."
The owner was working closely with consultants to understand the complexities in resolving the future direction of the historic building after the fire and was complying with the requirements of council’s dangerous and insanitary building policy.
“While council sympathises with local impacted businesses, ultimately the responsibility lies with the property owner."
The Otago Daily Times was unable to contact the owner, but options to solve the issue are believed to include putting the building on the market in the hope someone might be able to restore it, and by applying for a demolition permit.