The start of 2023 marked the beginning of a pilot program where the city of San Antonio aims to help local small businesses adversely affected by protracted construction projects.

But some merchants in areas targeted by the city’s Small Business Construction Mitigation Pilot Program said they feel the city's offers of indirect financial aid may not be enough to help their businesses survive in the long run.

City staff briefed the City Council’s Economic and Workforce Development Committee about the program, which is starting with $400,000 budgeted from the San Antonio’s Fiscal Year 2023 general fund.

City officials said the idea is to assist ventures affected by city-supported projects that persist for more than one year, or those in commercial areas where 10 or more small businesses have seen a significant decrease in customer traffic because of lingering construction.

Specifically, the program offers $310,000 towards marketing and promotion of select applicant small businesses, including better signage, mailers, community outreach and tools that a business can use to boost online traffic via the city’s web presence program.

About $50,000 left over will be used on messaging to inform nearby residents about the progress of construction influencing the affected business, city officials said.

The remaining pilot program money will be set aside to help affected businesses with other forms of networking and technical assistance, and to develop the city’s collaboration with the mapping app Waze to keep residents better informed about vehicular traffic issues or closures in the area.

City officials said 14 corridors have been identified as needing help through the mitigation pilot program, with immediate aid being offered to businesses on Broadway Street, North St. Mary’s Street, North New Braunfels Avenue, Old Highway 90, Goliad Road, Bulverde Road, South Presa Street and West Commerce Street.

But owners of small local enterprises on Broadway and North St. Mary’s have been vocal critics of the city’s plans, saying projects on their respective corridors have severely disrupted their businesses.

Merchants such as Augie Cortez, owner of Augie's BBQ, said it is a challenge for customers and employees to even safely access his Broadway restaurant, and that the city should consider more than erecting signs to attract customers.

"Let’s think about that for a second. ‘We need more signs to let people know that we’re open.’ How does that make any sense at all?” Cortez said.

Grunt Style Chief Executive Officer Glenn Silbert said the city's program could help some businesses, but that the city should have been more proactive with readying financial aid before the start of these road projects.

Silbert said his apparel retail store on Broadway has seen a drop in commercial activity, adding that many visitors have a hard time reaching his shop.

“This should have been part of the project to begin with,” Silbert said.

Operators of several bars, restaurants and shops along the North St. Mary’s strip have been especially critical of the city, accusing elected leaders and department heads of mismanaging a bond-funded road improvement project that is months behind schedule mainly because of what local officials described as soil issues.

According to the city, the $15.7 million North St. Mary's project, which began in March 2021, is now estimated for completion in August 2023.

Aaron Peña, owner of The Squeezebox bar and music venue on North St. Mary’s, suggested the city instead consider extending direct financial aid to struggling businesses, including possible help with rent or utility payments.

In a more pointed social media post, Peña chided the city regarding the mitigation initiative.

The “Small Business Construction Mitigation Program” is just a [sic] PowerPoint presentation on how to effectively waste $400,000 on useless [sic] and completely avoid giving it to small businesses who are dying because of your construction," he said.

Committee and council members said they would be willing to mull other forms of relief for small businesses affected by long construction projects, including possibly using some tax increment financing proceeds.

After the Dec. 16 committee meeting, committee and District 2 Council Member Jalen McKee-Rodriguez said helping small businesses struggling in construction zones should encompass more than marketing and signage.

"Businesses on North New Braunfels, the St. Mary’s strip and future construction-impacted businesses need direct relief and a sustainable fund," McKee-Rodriguez said in a social media post.

North St. Mary’s merchants and residents are invited by the city to attend a public meeting at 4 p.m. Jan. 6 at St. Sophia Greek Orthodox Church, 2504 N. St. Mary’s St., where city public works staff will update visitors on the neighborhood road project.

Local officials said the city plans to review progress with the pilot program in June 2023, with a final assessment slated this fall.

State Rep. Diego Bernal, D-San Antonio, a former District 1 council member who represented the city center, said there is no easy or cheap way for the city to help businesses hit hard by delayed construction projects.

“Nothing is stopping the City Council from creating a street repair mitigation program. Might be hard. Might be expensive. Might be messy. But it’s right,” Bernal said in a social media post.