Downtown construction cuts into restaurants bottom line

The city has embarked on a multi-million-dollar capital improvement project in downtown Gilroy, but some business owners say its costing them money, too.The proprietors of the Milias Restaurant and Hotel estimate they lost thousands of dollars in potential revenue between Dec. 1 and 5 after a weeklong construction project drove away customers during whats traditionally the busiest month in the restaurant business.

Along Eigleberry Street between First to 10th streets, contractors are replacing nearly century-old water lines under a contract with the city. After that part of the package is completeexpected to wrap up early in the New YearEigleberry Street will be dug up, patched and re-paved in the spring.

The last time the street was done was in the 1920s, City Transportation Engineer Henry Servin said.

A hodgepodge of different sidewalks surrounding the Milias, located at the corner of Sixth and Monterey streets, will be replaced and standardized with the rest of downtown in February. The streetlights at the intersection will be replaced with ornamental LED streetlightswhich save money on electricity costs and provide better, clearer lighting, Servin said.

But Milias co-owners Adam Sanchez and Ann Zyburra told the Dispatch that having contractors block off the intersection of Sixth and Eigleberry streets for the water line project cut thousands of dollars from their bottom lineafter would-be customers turned elsewhere when they saw construction.

All our parking was gone, and parking is already bad enough in downtown Gilroy, Sanchez said. Some very good customers of mine said they came by, drove around three times and went somewhere else. We heard that all week.

The city notified businesses and residents who would be affected by the construction via a letter.

Its not that were pissed off theyre doing the work; it has to be done, Sanchez continued. I just wish they worked with us a little closer.

The lunch crowd suffered the most, Sanchez added, but some dinner customers assumed the construction went on into the night. Work at the intersection on the water line wrapped up by 3:30 p.m. as a consideration to downtown businesses, according to Servin.

The city installed a changeable message sign adjacent to the Milias on Sixth Street that displayed a message reading business open during construction. Sanchez said they appreciated the gestureit shows the city is trying, he explainedbut there is still room for improvement.

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Downtown construction cuts into restaurants bottom line