Businesses attribute drop in sales to downtown road closures and
construction along Monterey Street
Gilroy – Downtown business owner Antonio Corvera had rung up only $17 in sales by lunch time on Thursday. He blamed the low figure in part on the construction crane parked in front of his Monterey Street water-supply store, Oasis Water. The rest of the problem, he said, stems from the construction-related closure of half of Monterey Street along a two-block stretch. The work is a prelude to major street and road repairs that will shut both sides of the road, between Fourth and Sixth Streets, through most of the year.
Corvera said sales have dipped 40 percent since construction began in January.
“There are some loyal people who’ve been here for the hard times,” he said. “But it’s tough because I can’t get new people in here.”
A year of major construction along Monterey Street has had a mixed effect on the area’s businesses, with some struggling to stay afloat while others report little change. Businesses that rely on foot traffic are getting hit the worst.
“It was slow before, but now it’s much slower – about 50 percent less,” said Armando Yassin, owner of Discoteca music and electronics at 7550 Monterey Street. “I’m really worried but I don’t know what to do.”
Yassin said he has not felt the benefits of a city-financed marketing campaign to bring shoppers to the downtown area. In coming months, downtown merchants will give away more than $5,000 in cash and prizes in the first of several promotional efforts.
The city hopes the campaign will lure shoppers to the area despite the inevitable parking headaches. The area has already lost nearly half of its storefront spaces to PG&E crews who are laying new gas lines. When that work is complete in March, the city will also shut down the northbound lane of Monterey Street so workers can rip up the road and install new sidewalks and other improvements. The area will lose roughly 83 parking spots through the fall, forcing employees and shoppers to jockey for spaces on side roads and parking lots off Eigleberry Street.
“It’s been a pain in the butt for parking,” said Omar Lara, who works at Gilroy Bowl. “The regulars and the elderly people are complaining about it.”
But not all customers are discouraged by the orange cones and yellow tape.
“If I have a specific reason to come down here, I will and park in the back (lots),” said Maureen Pramanik as she walked into Dilly Dally Alley, a children’s clothing store.
Michael Brownfield, owner of Vacuum Center of Gilroy on Monterey Street, said the city needs to do a better job directing shoppers to parking areas off Eigleberry Street. Detour and promotional signs were already supposed to have gone up throughout Gilroy, but the city encountered problems with its vendor, according to Kat Filice, the head of the marketing effort. She said officials hope to get the first signs up by next week.
Despite the early hiccups in the marketing effort, Brownfield said his business has not suffered.
“It’s been real consistent. People have been dealing with the parking. We have a lot of good, loyal customers,” he said. “I’m sure that a lot of other people are hurting, especially the businesses that rely on foot traffic.”
