FORGET the global financial crisis and tourism slump - this businessman blames the controversial giant mushroom in City Place for the demise of his cafe

Sidney's on City Place owner Ian Kitchin is angry the locks on his cafe were changed by council officers because of a dispute over rent payments.

Mr Kitchin concedes he owes about $38,000 in rent to the council, which owns the building, but says the $1.8 million City Place redevelopment had stopped visitors and stalled trade.

He said the planned three-month construction period had blown out to almost 11 months, forcing his business "down the toilet".

"I asked for rent to be waived for the construction period," Mr Kitchin said.

Mr Kitchin said he was upset that his cafe's locks had been changed late Monday night, just days after he emailed Mayor Val Schier and Cr Alan Blake to arrange a meeting to discuss rental compensation.

The council owns the property which incorporates the old school of arts and Cairns Historical Society.

Cairns Regional Council acting chief executive Peter Tabulo said about $38,000 in rent was owed. He did not rule out further negotiations with Mr Kitchin.

Mr Kitchin is not the only nearby business owner blaming the redevelopment - which includes a new performance stage that critics say resembles a giant mushroom - for hurting profits.

A restaurant owner who asked not to be named said the "toadstool's" construction had cost him $300,000 in lost sales.

Piccolo, of Piccolo Cucina restaurant, said he had also been badly affected.

"It did affect his business, it affected my business and all the businesses around here and we got nil out of it," he said.

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