Merchants on Sparks Street are calling on their landlord — the federal government — to do a better job filling empty storefronts along one side of the downtown pedestrian mall.

Nineteen of the 38 ground-level storefronts on the north side of Sparks Street between Bank and Elgin streets currently sit empty or serve as construction offices for parliamentary precinct workers.

The properties are owned and leased by Public Services and Procurement Canada (PSPC).

I don't think they want to be in the landlord business. - Elayne Schwartz, owner Ottawa Leather Goods

Until recently, Elayne Schwartz was a tenant of PSPC at 179 Sparks St., where she owned and operated Ottawa Leather Goods, a mainstay since her grandfather opened the shop in 1921. She closed her doors for good on Aug. 31, and said her deteriorating relationship with her federal government landlord was a big reason.

"They're not in the landlord business, and I don't think they want to be in the landlord business," Schwartz said. "They're using the space for storage and for construction offices. In any other country, this is prime real estate for retail."

Elayne Schwartz says her father and grandfather before him enjoyed more stable relationships with their landlord than she did in recent years. (Giacomo Panico/CBC)

Schwartz said the construction outside her business was constant.

"Last year I had scaffolding up in front of my store for almost eight months out of the 12 months. But it wasn't just one time, it was four times," Schwartz said. "They would put it up, they would do something, they would take it down, and a week later the scaffolding would be back up."

Making matters worse, Schwartz said, was PSPC's recent move to begin offering shorter-term leases instead of the usual five years plus an option to renew for another five, industry standard for established tenants.

"They offered me a two-year lease and a substantial increase in rent," Schwartz said. "There was no point."

Elayne Schwartz, a former Sparks Street store owner, and Ian Wright, co-owner of The Snow Goose on Sparks, say the retail mall would work better if there were far fewer empty storefronts. 1:16

The empty windows on the north side of Sparks Street sit in stark contrast to the south side, which is lined with new shops and eateries including the upscale Riviera restaurant. A new hotel will soon open between Metcalfe and O'Connor streets.

The buildings on the south side belong to either private firms or the National Capital Commission (NCC), which has hired a private company to handle commercial leases.

After nearly a century years in business, Ottawa Leather Goods has shut its doors for good. (Giacomo Panico/CBC)

Some north-side tenants wish PSPC would do the same.

Two years ago, Jason Komendat opened Retro-Rides, a bicycle service and sales shop on the north side of Sparks Street, but he soon outgrew the space and began inquiring about leasing a larger space from PSPC.

"It seemed like every time we were getting close there was always something that got in the way," Komendat said about the negotiations.

"We negotiated on one space for quite a long time, did a formal proposal for it, only to find out afterwards that it was only available for about a year. When you find things out like that at the last minute, it's a bit devastating."

Not long after opening his Retro-Rides bike shop, Jason Komendat approached PSPC to lease a larger space. It was a frustrating experience. (Giacomo Panico/CBC)

In a written statement to CBC, PSPC said it's committed to restoring and modernizing the buildings on the north side of Sparks Street, some of which date from the late 1800s and are "currently in poor condition."

The department defended its move toward short-term leases.

"Short-term leases are required to enable the needed rehabilitation work to move forward," PSPC said, adding its goal is to secure longer-term leases once the renovations are complete.

Another for lease sign goes up on a vacant storefront on the north side of Sparks Street. (Giacomo Panico/CBC)

Ian Wright, co-owner of The Snow Goose Canadian craft shop, said he understands PSPC's need to renovate the buildings, but questions how the department is going about it.

"The Four Corners building [at Sparks and Metcalfe] has recently been renovated after years and years and years. It looks fantastic," Wright said. "But the first thing they do is use the ground floor as an office for the construction company that's working on Parliament. Could they not have used the second floor?"

Wright worries the department's focus on beautifying the parliamentary precinct has resulted in a missed opportunity for Sparks Street.

"It's perfect retail space for what I like to call Canada's street and Ottawa's street, and it's all blanked off."

Ian Wright, co-owner of The Snow Goose, would like to see PSPC put the ground-level units on Sparks Street to better use. (Giacomo Panico/CBC)

The vacancies along the north side of Sparks Street come as the mall's Business Improvement Area (BIA) prepares to request the city beautify the pedestrian mall by planting trees and adding amenities such as benches and hammocks.

"Millions of dollars are going to be put into the streetscape. It's going to be absolutely beautiful," Komendat said. "But if things continue the way they are, there's going to be 50 per cent of this street that has a 60 per cent vacancy rate or more, and it just doesn't make sense."

Restoration work of the Four Corners building at Sparks and Metcalfe streets was completed in April 2018. It's currently being used as an office for construction workers. (Giacomo Panico/CBC)

Warren Wilkinson, an Ottawa commercial real estate broker with Colliers International, said PSPC is by nature less flexible than the NCC and the private firms on the south side of the street, which are able to offer incentives to attract tenants.

"They're offering improvement allowance packages in order for the tenants to build out their space," Wilkinson said. "I think it's hard for the north side of the street and the public side to use public funds in order to help improve the space for private users."

Renovation of the Wellington building at Sparks and Bank Streets was completed in June 2016, yet the doors and windows remain covered. (Giacomo Panico/CBC)

If attracting retail tenants isn't a priority for PSPC, former Ottawa city councillor Peter Harris believes the department should at least consider making the ground-level spaces on the north side of the street open to the public through mini-museums or interpretation centres.

As a former manager of the Sparks Street Mall Authority, Harris has a warning for the residents of Ottawa: "If people aren't careful, we're going to lose this street as a civic street, as an identity of Ottawa," he said. "This is going to become a pavilion for federal bureaucrats. This will become a fancy Tunney's Pasture."