Beloved Mile End bookstore being forced out due to rent increase

Stephen Welch has been in the book business for almost 40 years. For the last 15, he's operated his store onSaint-Viateur Street in Mile End, catering to the intellectuals and artists who make the neighbourhood a cultural hub.

But now, facing a significant commercial rent hike, Welch says he'sbeing forced out of his space.

"At a certain point a buzz happens. And that's when large developers start to see that there's something going on on the street and want toget in on the action," he told CBCNews. "You can be paying a fairly low rate as I was and then, when the lease is up, they can put it up as much as they want."

Welch saidhis current lease ends in August, but when he tried to negotiate with the building's owner, real estate developerShiller Lavy, they weren't able to come to an agreement.

"I just said I want the same deal for two years and they said no, no no, we wantthe moon," said Welch.

"I understand that Shiller Lavy is a business and they want to make money, that's what they're doing. But it doesn't have to be predatory and profits don't have to be so high as to alter and change the street."

Developer Danny Lavy told CBC News in a phone interview thatWelch's rent was originallylow because he had a long-term lease with an outdated rate.

He said the current hike amounts to an increase of about $1,500 per month.

Lavy saidhe had no choice but to up the cost of rent for the bookstorebecause of what he pays in property taxes and insurance on the building.

For Welch,the hike comes after a particularly difficult financial year for non-essential businesses.

"It's a pandemic, there's no tourists on the street, Iwas closed three months last year," he said.

It's also the second time Welch has had to move because ofincreasingcommercial rents. Welchwas priced out of hisprevious location on St-Laurent Boulevard as real estate on the strip became more in demand.

He added that small, independent shops like hisgive character to the neighbourhood and make it a destination.

"You go to anywhere in Canada or the U.S., you go to the main strip, you're going to see exactly the same thing, the same big box stores, the same fast food stores. There's very little diversity. Holding onto diversity is a great thing if you can."

More protections needed, says city councillor

Welch saidhe'd like the province to bring in new legislationto protect small businessesfrom being driven out of trendy areas.

Richard Ryan,city councillor for Mile End, told CBCNews thatthere is a provincial registry designed to monitor commercial rent increasesbut it's not mandatory.

He said making this registry mandatory was a key recommendation following city consultations on vacant storefronts in commercial areas.

Ryan added thatthis is not the first time businesses in the area have suffered and closed due to sudden rental increases.

He gave the example of the indie cafe and event space Le Cagibi, which was formerly located at the corner of St-Laurent Boulevard atSt-ViateurStreet.

The business was forced to close and relocate to Little Italy due to a similar substantial rent increase.

Across the street from S. W. Welch, a vintage clothing store owner saidshe's worried the Mile End is losing a lot of the character that makes it unique.

Lorraine Lvesque hasbeen in business in the same spot since 1997, and has seen ashift recently.

"It's been really bad. Because you can seevacant stores all the time, and it's just, it's killing the neighbourhood," saidLvesque.

Lvesque said if the Mile End is to retain its characteristic charm, there needs to be limits on commercial rents the way there are on residential properties in Quebec.

"We would wish that someone with some power could do something."