"We're just really getting established now, to a point where it feels like we have some momentum.
"It's a little like the rug is being pulled out from under you."
He said, despite council claiming to have consulted the surrounding businesses, he had not been consulted.
"I only hear about meetings they've had after they've happened, and from other business owners."
Sean Mallon, council's group manager infrastructure services, said the upgrade was a part of FutureKapiti's long term plan 2015-35.
According to him, there would not be a reduction of carparks in the Kapiti Lights area.
"Our work to upgrade the Kapiti Lights area aims to make it more pedestrian orientated, which in turn will help create a setting that supports new and existing shops to thrive.
"Carparking on the existing SH1 is being considered as part of the Transport Agency and council's work to make SH1 a fit-for-purpose local road."
Mr Mallon said the upgrade, expected to commence in April, would cause some disruptions but would be kept to a minimum.
"We will work with businesses in the area to let people know that Kapiti Lights is open for business throughout construction," Mr Mallon said.
He said council had been working with building owners and businesses in the Kapiti Lights area since 2014 to work up concept plans and agree on funding arrangements.
Improvements, he said, were being done with the support of private building owners at Kapiti Lights.
"The upgrade is being jointly funded by council and private owners of buildings in the area."
Mr Sutton questioned whether the shared costs would result in an increase in rental prices for shop owners at Kapiti Lights.
He said, with the upgrade in mind, he had considered relocating his store.
"But the prospect is too expensive and would be too disruptive to business."