COSTA MESA : Beleaguered Merchants Form Assn.

Downtown merchants, feeling the pinch of a sluggish economy and a loss of business due to construction on Newport Boulevard, have formed an association to promote their businesses and work with government officials on future road projects.

Many merchants near the freeway construction project say they have lost money since the state Department of Transportation began extending the Costa Mesa Freeway last September. Since the project forced the closure of northbound and southbound lanes, reducing the streets to one lane each way in December, the drop in business has become even more pronounced. Caltrans has estimated that 80,000 vehicles a day traveled on Newport Boulevard before the construction project began. Now, only about 30,000 do.

Some merchants say they have lost 30% to 50% of their business since then and some have also laid off employees.

In addition, Caltrans plans to fill potholes in the street after the lanes are reopened this summer. Business owners fear they might not survive another construction project.

“There are people hanging on by their fingernails,” said Randy Garell, president of The Grant Boys. He met with other merchants last week at a Chamber of Commerce session to discuss forming the Costa Mesa Downtown Merchants’ Assn.

The group will hold its first meeting Monday. Objectives include attracting more customers while the projects continue and asking the city to help delay the additional Caltrans project.

The city has asked for a delay but it may not be possible, according to Bill Morris, director of public services.

Caltrans is planning a $1-million project to upgrade Newport Boulevard south of 19th Street and has to begin the project before the fiscal year ends June 30. If that deadline is missed, the state could take that money away to use on other projects, Morris said.

“I am afraid if we don’t do it, Caltrans will just have to come in and try to patch the potholes until they can get the money rebudgeted again,” he said.

“Caltrans has put off advertising (for bids) but they’re telling us that they need to gear up pretty soon in order to use that money, otherwise it will be lost through the budget process,” Morris said. “It’s a tough situation. We don’t want to affect the businesses either. Obviously that isn’t good for the city.”