LANSING, Mich. (WXYZ) — There is a new proposal out of Lansing that could help small business owners recoup lost revenue from construction projects by creating a “road construction business loss reimbursement program."
Shaina Allen is the owner of Scooter's Coffee in Sterling Heights. Over the summer and into the fall, her business took a hit when Van Dyke Freeway was shut down between 18 Mile and M-59.
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“In about July we had one of our best months, and then they dropped the cones outside of our store, and just started dropping in businesses about you know 15 to 20 percent each month,” Allen said.
This proposed program could help business owners in a similar situation to Allen’s.
The legislation was put forward by State Sen. Sarah Anthony, who represents Michigan’s 21st District.
If the program is approved, it would reimburse small business owners upwards of $15,000, if they can prove a significant decline in revenue. MDOT sent us a list of examples that have helped business, which is below:
Anthony’s plan would make it the Michigan Department of Transportation’s responsibility to pay back these businesses.
“Ultimately we have to decide how much of a priority road funding is and how we pay for it, so we are in active discussions about those conversations, but this is a very small program that I believe would also make sure that as we are driving around the roads, that we have neighborhood business to support,” Sen. Anthony said.
I reached out to MDOT, which sent the following statement.
“On every road and bridge project, MDOT officials work to balance the needs and safety of the contractor and traveling public while minimizing the inconvenience for business owners and their customers. All infrastructure needs to be repaired and rebuilt at some point, and MDOT officials appreciate the community leaders and business owners who acknowledge that they prosper from having their business on a heavily traveled commercial corridor. Many of these local officials have invited MDOT engineers and contractors to celebrate with them when a project is complete and a street is reopened, very recently in West Branch, Sandusky and Traverse City, just to name a few cities. Beyond that, when rebuilding a state route through a business district or community, MDOT engineers often work closely with the local municipalities to arrange replacement of their utilities under the road, to ensure working order of those utilities, reducing the need to tear up the street later. Utility replacement is time consuming and often adds to the overall project timeline but saves on future inconvenience.”
Anthony says she is trying to get this bill passed before the end of this year. However, she is prepared to reintroduce the bill next year if necessary.
As for Allen, she says she does not know if creating this program is the right move or not.
“It’s such a tough question, right? Because it’s not necessarily MDOT’s fault, it’s not necessarily our fault. Yes it absolutely would be beneficial, to have some of that money recouped or given back to us, but I don’t know if I can answer that question yes or no, just because it has so many moving pieces,” Allen said.
You can view the proposed legislation in full at this link.
