San Diego, December 15, 2025
San Diego’s local businesses, particularly in the City Heights neighborhood, face significant challenges due to prolonged construction projects. With decreased foot traffic and financial hardships exacerbated by a $13 million road improvement project on University Avenue, many businesses report reduced sales and are forced to implement staff cuts or temporary closures. To address these issues, the City Heights Community Development Corporation has initiated a relief fund and a ‘Shop Local Passport Program’ to encourage residents to support neighborhood businesses.
San Diego Businesses Face Challenges Amid Ongoing Construction Projects
San Diego, California – Local businesses in San Diego are experiencing significant disruptions due to prolonged construction projects, leading to decreased foot traffic, reduced sales, and financial hardships. The most notable impact is on the City Heights neighborhood, where a $13 million road improvement project on University Avenue has been underway since January 2023. Initially slated for completion by summer 2024, the project now faces further delays, with an anticipated finish around March 28, 2025. This extended construction has resulted in road closures, detours, and the presence of heavy machinery, making storefronts appear closed and deterring potential customers. Business owners report a substantial decline in revenue, with some establishments forced to reduce staff or close temporarily.
In response to these challenges, the City Heights Community Development Corporation has introduced a relief fund to support affected businesses. While the exact amount of financial assistance remains undetermined, the initiative aims to provide some respite to struggling local enterprises. Additionally, the organization has launched a “Shop Local Passport Program,” encouraging residents to patronize neighborhood businesses by offering rewards and incentives.
Beyond City Heights, other areas in San Diego are also grappling with the repercussions of extensive construction projects. The redevelopment of the former Westfield Horton Plaza into the Campus at Horton has encountered significant hurdles. Despite a $550 million investment, the project is facing foreclosure due to challenges in securing tenants for its 770,000 square feet of office space. This situation underscores the broader difficulties in the commercial real estate sector, where high vacancy rates and shifting market demands are prevalent.
These ongoing construction projects, while aimed at improving infrastructure and urban development, have inadvertently placed a strain on local businesses. The extended timelines and operational disruptions have highlighted the need for more effective planning and communication between city officials, contractors, and the business community to mitigate adverse economic impacts.
What is the City Heights road improvement project?
The City Heights road improvement project is a $13 million initiative on University Avenue, started in January 2023, aimed at enhancing pedestrian and driver safety with features like roundabouts, crosswalks, transit stops, and a new storm drain system. The project was initially expected to be completed by summer 2024 but now anticipates completion around March 28, 2025.
How have local businesses been affected by the construction?
Local businesses, particularly in the City Heights area, have experienced significant disruptions due to the prolonged construction. Challenges include road closures, detours, and the presence of heavy machinery, leading to decreased foot traffic, reduced sales, and financial hardships. Some establishments have been forced to reduce staff or close temporarily.
What measures are being taken to support affected businesses?
The City Heights Community Development Corporation has introduced a relief fund to support affected businesses. Additionally, they have launched a “Shop Local Passport Program,” encouraging residents to patronize neighborhood businesses by offering rewards and incentives.
What challenges are other San Diego construction projects facing?
Other construction projects, such as the redevelopment of the former Westfield Horton Plaza into the Campus at Horton, are encountering significant hurdles. Despite a $550 million investment, the project is facing foreclosure due to challenges in securing tenants for its 770,000 square feet of office space. This situation reflects broader difficulties in the commercial real estate sector, including high vacancy rates and shifting market demands.
Key Features of the Article
| Feature | Description |
|---|---|
| City Heights Road Improvement Project | A $13 million initiative on University Avenue, started in January 2023, aimed at enhancing pedestrian and driver safety. Initially expected to be completed by summer 2024, now anticipates completion around March 28, 2025. |
| Impact on Local Businesses | Prolonged construction has led to road closures, detours, and heavy machinery presence, resulting in decreased foot traffic, reduced sales, and financial hardships for businesses. Some establishments have been forced to reduce staff or close temporarily. |
| Relief Measures | The City Heights Community Development Corporation has introduced a relief fund and launched a “Shop Local Passport Program” to support affected businesses. |
| Challenges in Other Construction Projects | The redevelopment of the former Westfield Horton Plaza into the Campus at Horton is facing foreclosure due to difficulties in securing tenants for its 770,000 square feet of office space, highlighting broader challenges in the commercial real estate sector. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
