Construction on Denver's 16th Street Mall will get worse before it gets better

If you think Denver's 16th Street Mall is a mess now, just wait.

CBS News Colorado has learned the next phase of the remodel will make it even more difficult for shoppers to find businesses and business owners to keep their doors open.

During Phase 2, the green construction fencing will move to the edge of storefronts with crews working adjacent to buildings. 

Pedestrians will be routed down the middle of the mall with fencing on either side of them, broken-up every few feet by walkways giving access to businesses, at least what businesses are left. Hard Rock Cafe is the latest to close. 

While Downtown Denver Partnership says the number of vacant storefronts has dropped by 5% since the start of construction, there are still for lease signs everywhere you look.

Mia Ward came all the way from Atlanta, Georgia to vacation in downtown Denver.

"My friend has been here before and she's like, 'we're going to go down to 16th Street Mall. So many shops and restaurants and its a fun place,'" she said. 

Her excitement turned to disappointment when she saw all the empty windows.

"It's very sad to see all the businesses that are closed," she said. 

Rocky Mountain Chocolate Factory and the Colorado Artisan Center are among the few survivors but owners Eric Williams and Gabriella Salazar say they're barely holding on. 

After the pandemic shut their doors, protestors broke their windows and now construction has fenced them off. 

"It was supposed to take three years to complete all 13 blocks," says Salazar whose business has been surrounded by fencing for 16 months and Phase 1 isn't even done. 

Salazar says Phase 2 will be worse still.

"I have reached out to the mayor's office with no answer emails calls," she said. 

Williams too is frustrated by the city's lack of assistance.

"I don't think they have a good feeling for what's going on down here," he said. 

He and his wife own both the Chocolate Factory in Writer Square and the one in The Pavilions. 

They've gone from 25 employees to five and, Williams says, they haven't taken a paycheck in two years.

"I don't know that we have a breaking point. We come in every day and do the best we can and hope for the best," he said.    

The city provided $7,000-$17,000 grants to 69 businesses impacted. But Williams says his monthly rent for The Pavilions location alone is $10,000 a month and construction will last three and a half years. 

Meanwhile, new businesses are eligible for six to 12 months free rent and $20,000-$400,000 grants as part of Popup Denver. 

The city says the goal is to allow small businesses to test their product and market and help surrounding businesses with an increase in pedestrian traffic. 

"While it would have been a home run to have one of more of the Popup operators decide to remain on 16th Street in a longer term way, that was not the objective of the program," said Chelsea Rosty with the Economic Development and Opportunity Office. 

She says the city is working on an additional round of funding for the program.

Salazar says all of the new businesses that received funding in the first round have closed.

"Out of six that came in... six... none of them stayed," she said. 

And if businesses like Salazar's and William's can't afford stay, tourists like Mia Ward may not be back no matter how nice the remodel is.

"Kind of puts a damper on our girls' weekend but we got chocolate and we'll make best of it," Ward said. 

The Department of Transportation says construction is about six months behind schedule due largely to the discovery of underground utilities installed at different points since the late 1800's.

The city expects some blocks to open by next summer and more than half the blocks to open by the end of next year. The project won't be fully done until the fall of 2025. 

Rosty says Mayor Mike Johnston "has directed all agencies to complete the project as quickly as possible while also supporting the businesses, residents, tourists and everyone else who spends time downtown."

But she says additional financial assistance to businesses won't be available until "construction duration exceeds 22 months as defined by the duration of the construction fencing present" and is "subject to the availability of funds."