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One South Dunedin business is facing an uncertain future as plans for a new community hub continue.
Negotiations between the Dunedin City Council and Veggie Boys over the fruit and vegetable retailer's lease at its site on the corner of King Edward St and Macandrew Rd have finished.
The council bought the building in March for the proposed South Dunedin community hub and library.
Veggie Boys had a long-term lease on the building but has agreed to leave by June 2020.
Negotiations with another tenant Para Rubber - which also has a long-term lease - were yet to be completed.
Veggie Boys owner Marty Hay said the negotiations had left him exhausted and uncertain about the future of his business.
He was actively looking for a new site but there was a shortage of buildings of adequate size in South Dunedin.
"Have a look around and tell me what properties are available like this one in South Dunedin. And it will only get worse now, once people know what's happening."
If nothing suitable was found then the business would probably have to close, he said.
The terms of the agreement were not allowed to be discussed, but Mr Hay said he would leave with the "shirt on his back" which was not always a certainty.
"Our retirement just went out the way it was planned and we'll have to work on a bit longer and do a few things a bit differently.
"But we've just got to be pragmatic about things. There's more to life than business."
While supportive of the library and the benefits it would bring, Mr Hay said he felt for his staff and the loyal customers who had supported him for the past five years.
His Albany St shop would stay open.
Council community services manager Simon Pickford said the council had tried to find a win-win situation for both parties and felt there had been a fair outcome.
"The last thing the council wants to do is get in the way of local business so what we tried to achieve during negotiations was an outcome which was best for both sides and I believe we did that."
Work on the multimillion-dollar proposal continued and architects had been hired to create a preliminary concept and design, Mr Pickford said. A panel made up of representatives from South Dunedin would help ensure the design met the needs of the community.
Construction was likely to begin in 2021 and the facility was expected to be opened in the first half of 2022.