The ACT government's urban marketing body has been stripped of funding following criticism from businesses and property owners.
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In The City Canberra is a non-profit government organisation responsible for promoting and improving urban areas around Civic, Braddon and Turner.
Private property owners are levied to fund In The City's activities but some recently raised concerns about the organisation's lack of impact.
Now, the territory government has transferred the administration of its $1.8 million levy to the newly-created City Renewal Authority.
A letter sent to property owners on June 15 informed them of the change.
"From 1 January 2018 responsibility for administering the City Centre Marketing and Improvements Levy will transfer from In The City Canberra to the City Renewal Authority," read the letter, seen by The Canberra Times.
"As a result of this change there will be a substantial increase in the funds available to undertake work in the city area and to run more and better events."
These changes would increase accountability and transparency around the spending of the levy, the letter stated.
"The City Renewal Authority will introduce new consultation processes and report to the community and levy payers regularly on how expenditure is being managed."
Between 2015 and 2016 inner-city property owners contributed close to $1.8 million towards the levy.
In April, the ACT government completed a survey asking them whether they believed they were getting bang for their buck.
Although the findings of the survey have not been released, some business owners raised concerns when approached by The Canberra Times.
Krysztof Jakubaszek, the manager of A.J's Watch Repairs in Baileys Corner, said not enough was being done to clean up the inner city.
"It's not paying the levy that concerns our businesses, but the fact that it's not actually improving much," he said at the time.
"All the events happening are good but we need more of a clean-up, things need to be fixed, there are holes in the paving, there needs to be better lighting."
Braddon developer Nik Bulum believed his precinct did not particularly benefit from In The City, pointing to the lack of basic amenities such as public rubbish bins.
The former Land Development Agency is set to be split into two separate entities covering urban and suburban development.
The City Renewal Authority will be responsible for selling land and handling development in Northbourne Avenue, the city and the lake front.
The Suburban Land Agency will be responsible for building new suburbs, selling land in those suburbs, and developing Canberra's stock of affordable housing.
A government spokesman previously said the decision to review In The City was based on major projects happening in the CBD, including the new courts precinct, the Haig Park master plan, the City to the Lake project and light rail.
"Given these major changes to the CBD, it's important that the government ensures that the levy remains a valuable investment for both levy payers and businesses owners into the precinct," he said.
It is not known what role In The City is expected to play following the funding switch and the establishment of the City Renewal Authority.
