Two businesses on Spring Garden Road in Halifax are starting off the new year by calling it quits and local businessowners say the street has two large problems — high property taxes and panhandlers.

Maritime Frame-It, near Birmingham Street, is closing this month after 50 years in business. A couple of blocks away on Brunswick Street, the Chapel Hill Gift Shop has already closed.

For independent store owners, it's another reason for people not to come downtown.

"It's really unfortunate to lose those independent retailers because those are the spark plugs of the street," said Kurt Bulger, the owner of Jennifer's of Nova Scotia.

"They were the destinations that drew people down from other parts of the town."

Robert Risley, Maritime Frame-It's owner, told CBC News the feeling of Spring Garden Road has changed and part of that is due to panhandlers.

He said when his lease ran out, he decided not to renew it.

'It's gotten really silly'

Meanwhile, Bulger said the property taxes at his store have gone up 16 per cent in the last year.

Kurt Bulger, the owner of Jennifer's of Nova Scotia on Spring Garden Road, said his property taxes have gone up 16 per cent in the last year. (CBC)

"It's really gotten silly in the downtown. We just can't compete on a per dollar square foot basis with what's going on in the business parks," he said.

"The continued pressure on the city fathers to allow development to take place on the outskirts and everything like that has put another nail in the coffin."

Others also said the Halifax Regional Municipality hasn't invested in the downtown area.

"The biggest problem is to take all those dollars and not reinvest them downtown on the streets on the sidewalks, on the esthetics," said Ross McNeil, the owner of Duggar's Men's Wear Limited.

"That's the issue."

Both Bulger and McNeil said they believe things will turn around if businesses can hang on.

McNeil said with the opening of the Halifax Central Library and other new construction on the street, Spring Garden Road is on its way back to glory after a decade of decline.

"The last 10 have been a little bit softer for sure, with some of the things that's obvious to everybody," he said.

"I think six, eight months ago we kind of hit the bottom of that and now it's on the way back up."