AUBURN – The redevelopment of the Phoenix Block is going forward, but without its most high-profile tenant.

For more than two years, Austin Conrad, owner of Austin’s Fine Wines and Foods, had planned on expanding his business into the first floor of the adjacent building, which is undergoing a $1.8 million renovation. But no more.

“To be frank and honest, it was purely a numbers, business decision,” he said. “We are somewhat disappointed, but there is no finger pointing and no political animosity.”

Conrad said the additional rent – in the neighborhood of $11.50 per square foot for several thousand square feet – would have put incredible stress upon the business and himself.

“We would have needed a dramatic and immediate impact right off the bat, basically a dramatic increase in business to pay for itself,” he said. “You could say I’ve reached the point in life where I don’t want to go to work just to pay the rent.”

Work on the renovation of the building at the corner of Main and Court streets has been on-again, off-again for the past two years as financial and construction delays pushed the project more than 18 months behind schedule. The building is owned by American Holdings of Naples, but the project involves more than $1.2 million in public-backed loans. The plan is to convert the three-floor brick building into about 8,350 square feet of rentable space.

Roland Miller, Auburn’s director of development, said he was sad to hear the news about Austin’s, but it wouldn’t have any impact on the project.

“But we had hoped this would be Austin’s new home,” he said. The city’s commercial loan program invested $400,000 in the project. Other loans include $100,000 from the Lewiston Auburn Economic Growth Council; $250,000 from the Androscoggin Valley Council of Governments; and $500,000 from the Maine Rural Development Authority.

Miller said he didn’t think American Holdings had begun to market the space, which is eight months from completion. A spokesman from American Holdings couldn’t be reached for comment.

Conrad had hoped to expand into the first floor of the renovated building to give customers more space than he has currently at his 78 Main St. restaurant and store. He also considered opening a wine bar in the new space.

“I know we’re tight where we are, but we’ll continue to re-engineer and make things work,” he said. “We’ve been doing that for 17 years now.”

And he remains philosophical about the business’ future.

“For every door that closes, several others open,” he said. “We’re not going away.”