Small businesses on a stretch of Charlottetown's University Avenue are being neglected, says a city councillor.

Businesses in the University Avenue and Euston Street area — one of Charlottetown's busiest intersections — are getting a raw deal from all levels of government compared to merchants in the heart of downtown, said Coun. Mitch Tweel.

This summer, a number of businesses located at the intersection have closed their doors.

There needs to be more spending for small business on a major artery like University Avenue, said Tweel.

He points to the province's multi-million-dollar loan to renovate and develop the historic Kays Building on lower Queen Street.

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Charlottetown Counc. Mitch Tweel says merchants at the intersection of University Avenue and Euston Street are getting a raw deal from goverment. (CBC)

"If we don't, we'll continue to see a continuation of small business and locations like we're seeing here changing hands on a quarterly basis. And that's not a healthy climate."

The former Shell gas station on the north-west corner of the intersection is prime real estate, said Tweel. But finding takers may prove difficult.

"Can a local business purchase that property? You're looking at half a million dollars to purchase the property. And then that doesn't speak to what would you put there," he said.

But not everyone agrees there is a problem.

Paul Haddad is moving into the space recently vacated by Relish Gourmet Burgers, which closed barely nine months after it opened.

"You can't worry about somebody next door or down the street or anything like that, really. Just worry about what you're doing, and do it well, and the best of your ability, and you'll do fine," said Haddad.

Tweel said he'd like to see the business community along University come together. That way they'll be in a better position to lobby various levels of government.