Denver business frustrated with sales losses, lack of communication as Santa Fe Drive construction continues

Denver says improvements on Santa Fe Drive will increase safety and accessibility, but in the meantime, some businesses say construction and poor communication are taking a toll on their bottom line.

The $29 million Santa Fe Streetscapes Project will reconstruct the roadway between West 6th and West 13th Avenues, adding wider sidewalks, safer pedestrian crossings, landscaping and upgraded utilities. The improvements are part of the voter approved Vibrant Denver Bond Program.

While the project is intended to make the corridor safer and more accessible, some business owners say road closures, confusing detours and inadequate communication from city officials are making it difficult to attract customers. One longtime restaurant owner reports a 30% drop in sales since work began in August.

At the corner of Santa Fe Drive and West 7th Avenue, El Taco de Mexico has served authentic Mexican food for decades. Known for its award-winning smothered burritos and green chili, the restaurant has become a neighborhood staple.

But owner Sasha Zanabria says construction outside the restaurant is creating new challenges.

"It slows consumer base down a little bit, just because it adds time to people's routes," Zanabria said.

Zanabria took over the restaurant following the deaths of her parents and hopes to preserve their legacy for generations. She supported the bond measure and the improvements it promised but says the city has fallen short in handling traffic changes and communicating with businesses.

"The way that the communication and the traffic has been handled by the city leaves a lot to be desired because it's not there," she said.

In an effort to help customers navigate the construction, Zanabria created her own signs directing drivers to an alternate route along West 7th Avenue. She said she later learned that the street would also be affected by closures.

"Nobody notified me that 7th was going to be closed," Zanabria said. "How are other businesses who are not as actively involved? How are they getting their information?"

Zanabria estimates her restaurant's sales have fallen about 30% since construction began. With winter approaching, she worries the prolonged disruption could threaten the survival of small businesses along the corridor.

"In six months, a business can go under if you're living paycheck to paycheck," she said. "Being a small business owner sometimes isn't as glamorous as people think."

Meanwhile, the city says the construction remains on schedule. Denver officials say the project is progressing as planned, and that crews are coordinating construction to reduce disruptions to nearby businesses.

The work involves multiple agencies, including Denver Water, Xcel Energy and city contractor Hamon Infrastructure.

Denver Water began replacing more than 2,800 feet of aging water mains between West 7th and West 12th Avenues on Aug. 10. The water main there is 136 years old and has long needed to be replaced. As of Oct. 8, the utility said the work was more than halfway complete and remained on track to finish by the end of 2026.

Xcel Energy is scheduled to begin replacing a gas main between West 6th and West 8th Avenues on Oct. 12. That work is also expected to continue through the end of the year.

Additional roadway reconstruction and stormwater improvements are expected to begin later in October between West 12th and West 13th Avenues.

Businesses including Swift's Breakfast House and the Nail and Skin Studio told CBS Colorado that road closures for construction are always hard, but the improvements are needed.

City officials say at least one lane of traffic will remain open during the streetscape construction phases, and access to local businesses will remain available. Drivers traveling through the area are being directed to use East 6th Avenue and northbound Speer Boulevard to avoid construction.

The city is encouraging residents to continue supporting businesses along Santa Fe Drive, including during the neighborhood's First Friday Art Walks, which are expected to continue as scheduled.

Despite those assurances, some business owners are calling on Denver to provide financial relief similar to the grants offered to businesses affected by construction along East Colfax Avenue. During the BRT Rapid Transit Project, the Denver Urban Renewal Authority issued around $1 million in Community STAND grants.

Zanabria questions why businesses on Santa Fe Drive didn't have more support before construction began.

"Why start something if you already know it's going to negatively affect businesses if you're not ready for it, if you're not ready to support them?" she said.

The city expects utility improvements to be completed in phases, with additional traffic access anticipated in 2027. The full Santa Fe Streetscapes Project is scheduled for completion by the end of 2028.

For Zanabria, the concern is whether businesses can withstand the disruption long enough to benefit from the improvements. While she supports the long-term vision for Santa Fe Drive, she says small businesses need clearer communication and more immediate assistance to survive construction.