NEW ALBANY, Ind. (WDRB) -- New Albany's city council is expected to take up a resolution at its meeting Thursday that would provide funds to help businesses along Main Street that have been negatively impacted by ongoing construction in the area.

Several small-business owners have said the multimillion-dollar Main Street Reconstruction Project is causing them significant losses, with the orange barrels and detour signs blocking customers from entering their businesses.

The biggest concern for business owners is parking. The multi-block project has prevented street parking, which they said has limited foot traffic to their businesses.

An idea to use American Rescue Plan funding to create relief grants for impacted shops was introduced during a council meeting in December by Councilman Al Knable.

During Thursday's meeting, the council will discuss designating $500,000 of ARP funds for some downtown businesses affected by the construction on Main Street.

District 1 Councilwoman Jennie Collier says there’s a question if the council can legally do that.

"If it's not a legal use then I would not support that," Collier said. "No promises will be made but we can look at other avenues to see if there’s other possibilities. I'm not ruling anything out."

Business owners have spoken with WDRB in the past about how the Main Street Revival construction plan has been robbing them of business, whether from parking issues or loss of foot traffic.

Dr. Jessica Gradel, who owns Stonewater Acupuncture and Chiropractic, says the ongoing construction is not only financially concerning, it’s prompting safety concerns for her clients.

"It is extremely frustrating," Gradel said. "The last couple weeks I’ve had to document a few falls for patients coming into the office, and I can’t control any of that out there. That was my worst nightmare coming to life."

Dan Hardesty, who owns Eureka Menswear, said the construction has created hardships.

"We lost our sidewalk, and we lost our side of the road," he said. "Our sales have dropped about 40% over what they should be."

Construction requires parts of State Street to East 5th Street to shut down to install new curbs, gutters, resurface roads and enhance the sidewalks.

Christian Johnson, who owns the Odd Shop, says she is losing money daily. 

"I have had to limit my hours and we have had people who have driven to see us and we have been closed," Johnson said. "We have seen our sales go down over 50 percent."

A GoFundMe page had raised thousands of dollars to support downtown business impacted by the construction. 

When completed, restaurants and businesses will have space for outdoor dining without impeding the flow of pedestrians on the sidewalks. Crosswalks for pedestrians will also be decreased from 52 feet to 22 feet.

New Albany Mayor Jeff Gahan admits the ongoing construction is frustrating but says he has no control over the schedule. 

"The timing is not the best but some of this is funded through federal and state money, so it's actually 80/20," Gahan said. "So I don't always get the luxury of picking the construction schedule."

The mayor says parking spots are available in front of city hall, and hopes shoppers will continue supporting these businesses even through construction.

"These are growing pains," Gahan said. "These are very necessary, and I think if nothing else people can see that we are committed to the long-term health of the city."

City leaders are set to take up the resolution at the  New Albany Council meeting scheduled for 7 p.m. on Jan. 5. 

City officials said the total cost for the Main Street Improvement Project is nearly $12 million. The Indiana American Water company also recently completed $1 million in infrastructure repairs on old pipes under Main Street.

Construction on the Main Street Improvement Project is expected to be completed in late 2023. 

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