Silver Screen Cafe owner Duane Barclay said the pop up cafes in town have taken business away from him.
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“Pop up shops are not going to encourage people to spend,” Mr Barclay said.
“The pop up cafe’s that the council has allowed has taken food from my mouth, a business that has been here for seven years.
“They don’t have the same rent and electricity expenses as someone like me.”
Mayor Fay Miller said pop up cafe’s have enriched the town.
“Council supports growth within the municipality,” Mayor Miller said.
“These businesses are keeping up with the lifestyle that we support in Katherine.
“I think it offers a variety of food and lifestyle choices, being located outside it lets people that want that experience have it,” she said
“It gives people a choice and I think that is great.”
Mayor Miller said mobile cafes pay rates appropriate to their business model.
“Those people pay a licence to operate and they do not have the full facilities so they pay appropriately,” Mayor Miller said.
Mr Barclay said the decline of the CBD is a serious issue.
“I have seen the town’s up and downs but I have never seen it like this,” Mr Barclay said.
“The Coffee Club is empty by three in the afternoon, we had a friend from Darwin drive into town at 2pm and he couldn’t believe it, everything was shut, it was a ghost town.
“Tourists that came into the cafe told me they had heard from other tourists not to come to Katherine because there is nothing to do here except see the gorge.
“They go to the gorge, go to Woolies, stay for maybe one night then they are gone.”
Mr Barclay said despite his frustration he still has “a lot of love and passion for this town”.
“For Sandra (Nelson) to say there is nothing wrong with the town is wrong, how can you say that when there are a dozen empty shops.
“You have to push for lower rents, I am lucky I have one of the best landlords in town, but it is still a struggle.”
Mr Barclay said the $10 million government has allocated to Katherine for an arts trail should of been spent elsewhere.
“What a waste of money, it could be going elsewhere, it could of been used to do up the sports and rec club.”