Santa Fe Drive Construction Impacts Local Business Sales

Ongoing streetscape work has slowed customer traffic, leading owners to call for financial relief.

Updated on Oct. 15, 2026 in Openings & Closings

Bold vector editorial illustration of traffic cones on an asphalt road, representing construction-related disruption to local business traffic.
Business owners on Denver's Santa Fe Drive are seeking government financial assistance as construction delays cause a 30 percent drop in revenue. AI Illustration. Upload story photo >

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Business owners on Santa Fe Drive are reporting significant sales declines as a $29 million streetscape project creates persistent construction delays. Local establishments like El Taco de Mexico have seen revenues drop by 30 percent since work began in August 2026.

Why it matters

The long-term project aims to upgrade aging infrastructure, but the resulting traffic diversions have made it difficult for consumers to access area storefronts. Owners are now seeking government grant support to remain operational during the multi-year construction period.

The Santa Fe Streetscapes Project carries a total budget of $29 million and involves the replacement of 2,800 feet of water mains. While the city previously provided $1 million in aid to businesses during the East Colfax Avenue project, similar funding for this corridor remains unconfirmed.

The players

El Taco de Mexico

This local restaurant on Santa Fe Drive is one of the businesses reporting a significant drop in sales due to the ongoing construction project.

Denver Water

The public utility agency is responsible for the ongoing water main replacement work that began in August 2026.

Xcel Energy

This utility provider began gas-main replacement operations on the corridor in October 2026.

The details

The project encompasses the stretch of Santa Fe Drive between West 6th and West 13th Avenues, reducing the corridor to one open traffic lane. To combat lower foot traffic, business owners are placing personal signs to direct customers through designated detour routes on East 6th Avenue and Speer Boulevard.

Timeline

  1. August 2026: The Santa Fe Streetscapes Project construction began.

  2. August 10, 2026: Denver Water started replacing 2,800 feet of water main.

  3. October 8, 2026: Water main replacement work was reported as halfway complete.

  4. October 12, 2026: Xcel Energy began gas-main replacement efforts.

  5. End of 2026: The water main replacement project is scheduled for completion.

Market Landscape

The current appeals for financial aid mirror the precedent set by the East Colfax Avenue project grant program. Small business owners are using this historical template to advocate for city-backed support as they navigate the prolonged traffic disruptions.

Consumers should expect continued lane closures and traffic delays between West 6th and West 13th Avenues until the project concludes. Drivers are encouraged to follow signage to East 6th Avenue and Speer Boulevard to reach local businesses during this time.

The takeaway

Ongoing infrastructure projects often require patience from both local business owners and their patrons. Customers can support local establishments by following detour signage and prioritizing these businesses while construction work continues.

Further reading

For more on the retail environment in the area, visit the Denver Openings & Closings section.

Source note: This article includes information reported by The Cool Down.

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Should city governments provide financial support to businesses impacted by long-term road construction projects?