NEW YORK, New York—On St. Patrick's Day this year, Irish pub owner Eddie Crowe stayed in his office all day out of embarrassment. The holiday did fall on a Monday, but business was even worse than he expected—the number of customers dropped 66 percent compared to the to the year before. It was particularly troubling, because according to Crowe, St. Patrick's Day festivities typically bring the restaurant enough revenue to cover six months' rent. Since the Metropolitan Transportation Authority began construction of the Second Avenue Subway in March, businesses between 91st and 96th streets have suffered, say storeowners in the area.
Crowe's Bar and Restaurant has had to lay off several employees in nine months. Sidewalk space has been reduced from 21 square feet to only six, discouraging foot traffic and ultimately causing six businesses to close, according to Barbara D'Antonio, owner of Wine Lovers just down the street on Second Avenue.
"It's especially sad because most businesses here are mom-and-pop startups of within four to five years," D'Antonio said. Since March, D'Antonio, who has been in business for four years, lost half of her customers.
Due to extensive tunneling, the construction will continue until 2015, working its way down Second Ave. The area between 91st and 96th streets will serve as the launch box for the tunnel-boring machine, so the area will be affected for the duration of construction.
Business owners fear that in that time, the noise and dust will drive more stores to close, and in their stead chain stores will spring up. Already another six stores are in immediate danger of closing, say the business owners.
In the face of the looming economic danger, the owners of 40 stores established the Second Avenue Business Association (SABA) to put forth the Second Avenue Economic Stability Initiative.
Their plan comes in three parts: One calls for a $4 million grant to help businesses pay for such things as advertisement or wages. Another is property tax abatement, offering landlords incentives to renegotiate businesses' leases to reflect current market rates. The last is a six-month period without sales tax aimed to attract spenders back to the area.
The grant portion of the plan has already passed the State Assembly. So far, because the six-months of sales from each business would have to be tallied, there is no estimate of how much the no-sales tax zone might cost the city and state, according to Assemblyman Jonathan Bing (73rd assembly district), a proponent of the bill. SABA argues that the cost to businesses should be considered when planning construction. "If we are to accept new construction projects in Manhattan, why can we not set a precedent?" D'Antonio said.
While the bill has won support among many lawmakers, New York Mayor Michael Bloomberg has not been forthright in his support.
"We don't want to wake up and find a brand new subway line surrounded by empty storefronts," New York Congresswoman Carolyn Maloney said in a press release. "It is only fair that the New Yorkers who are bearing the burden of Second Avenue Subway construction get the help they need."
To help sustain local businesses, New York residents should start by supporting the stores, suggests Mallory Spain, the executive vice president of the East 86th Merchants and Residents Association. The construction is expected to reach her stretch of Second Ave. this fall.
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