The fallout from closing of two notorious bars in Edmonton's inner-city has become a headache for the owner of a nearby restaurant.

The city bought and closed both the York and the Mount Royal hotels earlier this year as part of the Boyle Renaissance urban renewal project.

The project hopes to transform the rundown and sparsely populated area by building a recreation centre and putting up hundreds of housing units for homeless and at-risk Edmontonians.

The York Hotel closed March 26, following years of public safety complaints. (CBC)The watering holes at 10401-96 Street and 10220-96 Street had been plagued for years with violence and noise complaints.

Fire and emergency personnel were called to the York Hotel's bar 1,214 times over a period of two years.

Since the hotels closed, some of the customers began visiting the Jasper Avenue Inn and Suites, next door to Hardware Grill, a fine dining restaurant on the corner of 97th Street and Jasper Avenue.

"Traditionally we've had lots of business at the hub hotel next door that's been sort of less privileged, drunk, older, but these people were rougher and more aggressive, lots of drug deals going on, lots of stopping our guests and our staff, and very aggressive," said Hardware owner Melinda Stewart.

Managers at Jasper Avenue Inn and Suites declined an interview with CBC News. In an email they said they are working closely with the police and the city's public safety compliance team to ban problem customers.

Acting Sgt. Nicole Chapdelaine, co-ordinator of the public safety compliance team, said the bar's management is being extremely cooperative.

Chapdelaine said the problems won't be solved by closing a couple of bars.

"Until these people find work or other things to do in the day rather that just loiter in front of these places, that an issue that's beyond what the public safety compliance team can do."