Salt Lake City Road Construction: A Challenge for Small Businesses
(Francisco Kjolseth | The Salt Lake Tribune) Road construction along 900 South near 700 East in Salt Lake City on Wednesday, July 26, 2023. A few blocks east, the intersection of 9th and 9th is set to shut down for 30 days because of construction.
Road construction is a growing concern for Salt Lake City entrepreneurs, especially for local retailers like myself. As the founder of Vintage Drift SLC—a unique vintage store that transitioned from an Etsy shop to a physical location in Ballpark on 300 West, then relocated to the Central 9th neighborhood —I've seen how construction delays severely affect small businesses.
Initially impacted by the 300 West Construction project, we relocated to Central 9th in early 2023 to regain momentum. Unfortunately, our struggles have continued due to delays in the Central 9th Project, initially slated to finish in August 2023. Yet here we are in October, and the work remains incomplete.
Salt Lake City's construction mitigation grant offers a meager $3,000 to affected businesses. This amount is woefully inadequate, considering the lasting impact that 60+ day delays have on small retailers. I am not the only business owner who feels this way.
Across the city, major construction projects—ranging from 300 West, Central 9th, 200 South, to Sugar House—are experiencing extensive delays.
This lack of punctuality can be catastrophic for owner-operated businesses operating on slim margins. According to research from JP Morgan Chase, the median small business holds only 27 cash buffer days in reserve. Even more concerning, half of all small businesses operate with less than a one-month cash buffer. A staggering 25% have fewer than 13 cash buffer days. This means that ongoing construction delays, which stretch well beyond a month, have the potential to deplete these reserves, leaving businesses in a precarious position.
It's not just an isolated problem - but a widespread issue reflecting poor project management.
City officials, disappointingly, remain indifferent to the hardships faced by small business owners. The prevailing attitude it seems as John Saltas aptly pointed out in Salt Lake City Weekly, is that new businesses will simply replace those forced to close. City officials add insult to injury when they prematurely celebrate the end of projects to the public and local media.
The consequences of incessant construction aren’t just confined to Vintage Drift SLC; they reverberate throughout the Central 9th business community. Samuel Stinson, of Randy's Records, notes a sharp decline in sales, stating, "“We haven't seen anything like this, around this shop. It's been pretty tough,” he said. "When this district was built up over the last few years, there was construction but it didn't shut us down the same way, and it didn't affect business the way that it impacted us over the last 7-8 months.” Jessica Davies, owner of Passion Flour Patisserie next door, laments the barriers deterring patrons: "Confusing parking has effectively halved our customer traffic.”
The situation is similarly grim for Laziz Kitchen, which has seen a staggering 40% decrease in overall sales since the redevelopment of 200 South. Wasatch Brew Pub in Sugar House hasn’t been spared either, grappling with a significant impact on its revenue and customer engagement - their neighbor Pizza Volta closed after less than a year in operation.
Another Central 9th treasure, Curiosity, closed after a parallel decline in foot traffic and sales. Animalia and Thyme and Place have also closed their doors in recent months.
The ongoing construction and subsequent delays are not just logistical nightmares; they're catalysts for a financial and cultural erosion affecting businesses that add unique character to our local community. Mismanagement and poor planning are not simply inconveniences; they risk irreversibly damaging the soul of Salt Lake City’s vibrant neighborhoods.
These aren't isolated events; they are emblematic of an overarching problem. Why do Mayor Mendenhall and her administration face no accountability for these ongoing issues?
Construction, while necessary, and leading to amazing improvements to the walkability and pedestrian access of our up-and-coming city - needs to be executed thoughtfully and efficiently. Despite promises for better signage and timely project completion, these pledges have been consistently broken.
I urge Salt Lake City residents to stand by their community. Without active support for small businesses, we risk becoming a city filled with chain stores and vacant properties.
Ignore the GPS advice to avoid construction zones and venture through the maze of orange cones to support the struggling businesses hidden behind them. We must unite to protect the vibrancy of our city. I also urge you to consider the impacts of these develop-at-all-costs attitudes in our current City administration when voting in our 2024 Mayoral election.
We've launched a crowdfunding campaign on Buy Me A Coffee to help us navigate these challenging times. Your support can make a world of difference in sustaining the unique character and community spirit that Vintage Drift SLC brings to the city.
