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Cincinnati leaders consider financial help for businesses affected by construction

'We owe our businesses some real support during road closure events that we can plan in advance,' said council member Seth Walsh, who requested a report on the idea
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CINCINNATI — Cincinnati City Council is discussing an idea that could provide financial support to small businesses impacted by city construction projects, an idea business owners have advocated for years.

The concept would create a program to help offset potential losses for businesses when construction affects access to their establishments.

Listen to how it would work and hear from some of the businesses previously impacted:

Road closures impacted a business's bottom line, so the city is looking for ways to help

The history

Last summer, a major infrastructure project on the East End caused frustration for residents and business owners after Greater Cincinnati Water Works (GCWW) crews replaced a 60-inch diameter transmission main under Riverside Drive.

At the time, Riverside Drive was mostly open, except for the 100-foot stretch that was being directly worked on. That meant no through traffic was possible, but most businesses remained directly accessible.

Watch my original story in June 2024:

Business owners say city's construction is driving customers away

Chris Rose, managing partner at Home Court Tavern, also known as Sinners and Saints, told WCPO 9 at the time he’d been frustrated at how the communication of the signage was handled after the project was planned for two years.

“This is in the height of our season for all of us down here, and so summer is when all of us make our money,” Rose said. “There is a direct impact on the businesses down here.”

A month later, new signs pointed the way to local businesses.

Despite updated signage, construction still concerns Riverside Drive businesses

Council member gets involved

In late August, council member Seth Walsh filed a motion asking the city to prepare a report and update the current policy relating to road closure signage and communication with private businesses.

Road Closure Policy Update by webeditors on Scribd

In December, another motion was filed, asking for the feasibility of financial support for businesses impacted by city construction projects. That motion was returned this month.

Funding Sources for Businesses Impacted by City Construction Projects by webeditors on Scribd

Walsh said he is pushing for the program after hearing from numerous business owners struggling during construction periods.

Cincinnati looks to ease burden on businesses impacted by road construction

Peer cities

On Monday, city council heard about similar programs in other cities. Salt Lake City offers affected businesses $3,000.

"The intent is for businesses to be able to use the $3,000 for enhanced marketing, signage, anything that will help drive customers to the business," said William Wright, project manager at Salt Lake City's Department of Economic Development in May 2023.

San Antonio has an even more substantial program, awarding businesses between $5,000 and $35,000, though it requires proof of revenue loss compared to the previous year.

Walsh said he was encouraged by the peer cities, noting that the overall cost of the programs was between $200,000 and $1.5 million.

"That's not a large sum of money that we can't find this year, in this budget. So I'm hoping this is a program that comes to life sooner rather than, rather than later," Walsh said.

The council member said he supports a program that “doesn’t have a cap.”

“I think when we artificially cap things, we hold ourselves back from being able to actually solve the real problems that are facing us,” Walsh said. "The reality is, every business is unique in its own way, but they've got to stay operational, and they know what their budget is better than we do.”

What’s next

In a committee meeting Monday, council member Mark Jeffreys suggested exploring partnerships to expand the program's reach.

"I do think we should explore ... doing this maybe in partnership with the county as well, because the county has projects, MSD has projects," Jeffreys said.

When asked about coordination between different government entities, given the budget is set to be unveiled in under two weeks, Walsh emphasized starting small.

"I think the first step is you create a pilot program to show that this can work," Walsh said. "I think we owe our businesses some real support during road closure events that we can plan in advance, and I don't think we need to hold ourselves back trying to wait for the more people to join us at the table."

The city's intent, according to the administration's report, is not to replace lost revenue but to help offset potential losses and support businesses through construction periods.

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