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Eleven Months of South Loop Construction Causing Businesses to Lose Big

By Josh McGhee | September 15, 2014 5:32am
 Some businesses along 16th Street between Indiana and Wabash Avenue have fired employees to stay afloat.
South Loop Construction
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SOUTH LOOP — Since construction began almost a year ago along a small stretch of 16th Street, businesses said they've been forced to fire employees and question how they'll survive in the South Loop if the work doesn't end soon.

Dilip Parekh, the owner of Dunkin' Donuts at 1575 S. Michigan Ave., said the ongoing construction has been giving him fits for months and has caused him to fire four employees. The financial problems have also put him a hole he's not sure how to get out of.

"Right now, I'm not making a single dollar. Business is down 33 percent from last year. Every month I'm losing $10,000," Parekh said, adding he's had no choice but to lay off employees as business dwindled.

Construction on 16th Street between Indiana Avenue and Wabash Street began in October, city spokesman Pete Scales said. The Department of Water Management is working to replace the sewers and is working with RCN Cable to finish the job this month, he said.

According to Water Department officials the most recent part of the project cost the city $2.1 million and began in mid-April. The project, which involves removing 600 feet of old water main and restoring trenches was supposed to be finished by the 5th of September.

The project is now scheduled to be completed by Oct. 10 and the contractor will be penalized for the extra time, said Gary Litherland, a spokesman for the water department.

The problems only got worse for Parekh in July when construction spread out to the center of Michigan Avenue, limiting traffic to one lane in each direction for most of the month. His business, which has a bus stop in front of it, was forced to depend entirely on foot traffic without feasible parking options nearby, he said.

Parekh first cut hours, going from being open 24 hours to opening at 5 a.m. and closing at 9 p.m. He then dropped prices on food and offered a construction special to try to draw customers in the door. When all of those efforts failed, he laid off four employees, he said.

Across Michigan Avenue from the Dunkin' Donuts sits Metropolitan Veterinary Clinic, where employees said that while construction hasn't affected their business it's still created headaches.

"Financially we're not taking a hit except for access to our parking lots. But the noise level hasn't been good for the animals. It's giving them anxiety," said Jennifer Orze, who works the front desk at the clinic.

Like most of the businesses in the area, the clinic was told construction would begin in February but would be finished by April. They were also told construction would only slightly block the alley that is the access point for the clinic's parking lot.

Devin Wordlaw, an owner of the Fashion Geek clothing store that opened in October at 69 E. 16th St., said the project has halted the growth of the small business.

"When the weather broke we were doing well but as soon as they started construction that was over," Wordlaw said, pointing out his window front to the construction, which doesn't allow any cars to pass.

He said the store has had several days when it has made absolutely no money.

"It's really been hindering us. [All the businesses] have been talking," Wordlaw said. "It's just really killing us and our customers complain. A few said they couldn't find a park and they just left."

Lenore Henderson, a technician at the Nail Social, 73 E. 16th St., understands the necessity of the project but wished the construction company and the city would keep the businesses more informed about it.

"Sometimes it looks like it's ending then it doesn't. They don't tell us what's going on but I'm sure they're doing their job," Henderson said.

Henderson said the construction company has turned off the water in the business twice: once with warning and the other by accident, causing an outage that lasted for about seven hours.

"Water is a huge asset for us in here," Henderson said.

The water shutdown, which occurred in early June also affected the Abyss Salon a few doors down. Workers there were informed about the water shut down a few days before but the water was only shut off for about an hour. But the next day the water was off for a full day without warning, they said.

Sharron Gilty, an owner of the Abyss Salon, said the biggest problem with the project is parking in a neighborhood already covered by parking restrictions because of its vicinity to Soldier Field. Parking along certain streets near the salon is not allowed two hours prior to start of any event at the stadium, and other streets are reserved for residential parking.

These parking problems have caused her to put events being planned at the salon on hold, she said.

Gilty has owned the business for nearly 10 years and said she's consistently endured construction in the area over the years. She's been hesitant to call the alderman to complain, explaining "The project has to be done and we can't speed it up."

Ald. Bob Fioretti could not be reached for comment.

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