Denver Street Project Squeezed Local Business Sales
Owners report revenue declines as $29 million construction work on Santa Fe Drive enters its third month.
Updated on Oct. 11, 2026 in Openings & Closings
Live Poll
Should city governments provide financial aid to small businesses harmed by ongoing local construction projects?
The Santa Fe Streetscapes Project, a $29 million initiative funded by the Vibrant Denver Bond Program, began infrastructure work on August 10, 2026. Local operators along the corridor between West 6th and West 13th Avenues report significant disruptions to traffic and foot traffic, with one restaurant citing a 30% drop in sales since the project commenced.
Why it matters
The reconstruction of 136-year-old water mains and upcoming roadway improvements create immediate operational friction for businesses reliant on street visibility and customer access. Operators face a multi-year construction timeline, forcing difficult decisions regarding cash flow management and customer retention while city transit detours bypass the area.
The $29 million Santa Fe Streetscapes Project budget covers the reconstruction of 2,800 feet of aging water mains and roadway improvements. While the city maintains traffic flow, one local business owner reports a 30% sales decline compared to the period before August.
The players
Denver Water
The municipal water utility managing the replacement of 136-year-old water infrastructure under the Santa Fe corridor.
Denver Urban Renewal Authority
A public agency responsible for community development grants, previously overseeing $1 million in funding for the East Colfax Avenue project.
Xcel Energy
The utility provider responsible for the gas main replacement work scheduled to begin in mid-October.
The details
Crews are replacing water mains that have been in the ground for 136 years, requiring significant road closures and utility excavations between West 6th and West 13th Avenues. Traffic is being rerouted to East 6th Avenue and northbound Speer Boulevard to accommodate the work. While the city emphasizes long-term safety and corridor accessibility, the current phase necessitates navigating detours and reduced access points that are impacting nearby commerce.
Timeline
August 10, 2026: Denver Water began replacing 2,800 feet of aging water mains.
October 12, 2026: Xcel Energy begins replacing a gas main.
Late October 2026: Roadway and stormwater improvements are scheduled to begin.
End of 2026: Utility improvements are expected to be complete.
End of 2028: The full streetscape project is scheduled for completion.
Market Landscape
The project is funded by the Vibrant Denver Bond Program, reflecting a broader trend of municipal investment in aging urban infrastructure. This construction follows a pattern set by previous development initiatives like the East Colfax Avenue project, which also balanced long-term accessibility goals against temporary business disruption.
Operators in the affected corridor should monitor construction schedules closely to anticipate temporary loss of street parking or pedestrian traffic during the next phase of stormwater work. Business owners should review lease terms or local relief programs for potential assistance during prolonged infrastructure-related disruption.
The takeaway
Large-scale infrastructure projects often result in multi-year periods of constrained revenue for street-level businesses. Owners should track sales variance specifically against construction milestones to better forecast cash flow needs throughout the project duration.
What happens next
Utility improvements are slated for completion by the end of 2026, with the entire streetscape project scheduled to wrap up by the end of 2028.
Further reading
For more on the retail environment in the area, see our Openings & Closings section.
Source note: This article includes information reported by CBS News.
Live Poll
Should city governments provide financial aid to small businesses harmed by ongoing local construction projects?
