Edmonton Councillor Anne Stevenson is calling on the city to revisit a plan that would compensate businesses impacted by prolonged construction, following the closure of the Downtown Khazana restaurant after 27 years of operation.
Khazana's downtown location closes
Khazana, a beloved Indian restaurant that had been a staple in Edmonton's downtown since 1998, shut its doors permanently, citing nearby LRT construction as a major factor. The restaurant, located near 107 Street and 102 Avenue, was surrounded by construction barriers, a muddy moat-like excavation, and reduced accessibility, deterring customers.
In a statement, the ownership said: "It is with a heavy heart that we announce the closure of Khazana Restaurant. Despite our best efforts, years of ongoing construction, reduced accessibility and the uncertainty of continued disruptions have made it nearly impossible for us to continue operations."
Councillor pushes for relief
Coun. Anne Stevenson, whose ward O'Day-Min includes the downtown area, expressed frustration over the loss of a long-standing business. She noted that former councillor Andrew Knack, now mayor, had previously pushed for a compensation plan but was defeated. Stevenson believes it is time to revisit that conversation.
"I'm really interested in revisiting a conversation that we've had in the past, and for me, it would be really focusing on property-tax relief for businesses that are impacted by multi-year construction," Stevenson said. "If you don't have a sidewalk that leads to your business, if you don't have a road in front of you, then I don't think that you're receiving municipal services that you need, and I think it's appropriate that be reflected in property taxes."
Stevenson emphasized that businesses facing extended disruptions deserve compensation, as they are effectively denied the municipal services they pay for through taxes.
Construction details
The construction involves the new O'Day-Min park to the south and the Valley Line LRT extension, which will turn north from 102 Avenue onto 107 Street. The transformation of 107 Street into a cul-de-sac reduced visibility and foot traffic for Khazana. A notice on the restaurant's door initially stated it would "remain closed until further notice," but management later confirmed the closure was permanent.
Khazana's closure marks the end of an era for Edmonton's Indian dining scene. When it opened in 1998, it was a pioneer, featuring wood decor, a roaring fireplace, and a visible tandoor oven. A second location on the southside remains open.
The city has previously explored financial relief programs for businesses impacted by major construction, but Stevenson's call for property-tax relief represents a more direct approach. She hopes the new mayor, Knack, who previously championed similar ideas, will support revisiting the issue.
