New Lansing Proposal to Reimburse Small Biz for Construction Losses

Dec 4, 2024 at 11:09 AM
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In Lansing, Michigan, a significant development is on the horizon that holds the potential to be a game-changer for small business owners. The emergence of a “road construction business loss reimbursement program” aims to assist these entrepreneurs in recouping the lost revenue they have endured due to construction projects. Shaina Allen, the owner of Scooter’s Coffee in Sterling Heights, has firsthand experience with this issue. Over the summer and into the fall, her business took a hit when the Van Dyke Freeway was shut down between 18 Mile and M-59. As she shared, “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.”

This Proposed Program: A Lifeline for Small Businesses

The legislation behind this program was put forward by State Sen. Sarah Anthony, who represents Michigan’s 21st District. If approved, it would offer significant financial support to small business owners, reimbursing them upwards of $15,000 if they can demonstrate a substantial decline in revenue. MDOT has provided a list of examples of businesses that have benefited from similar programs, highlighting the potential impact. As Sen. Anthony stated, “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.”

How MDOT Balances Construction and Business Interests

MDOT officials work diligently on every road and bridge project to strike a balance between the needs and safety of the contractor and the traveling public. They strive to minimize the inconvenience for business owners and their customers. As stated in their official 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.”

The Impact on Business Owners like Shaina Allen

For Shaina Allen, the situation is complex. She understands the importance of road construction for the overall development of the area but also feels the pinch on her business. As she said, “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.” This highlights the dilemma faced by many small business owners in such situations.You can view the proposed legislation in full at this link.Where Your Voice MattersContact our newsroomHave a tip, story idea or comment on our coverage? Send us a message. Please be sure to let us know if you’d be willing to talk on camera about the topic.Security Check