Work has begun on the Albany Street Connection Project, which includes installing a cycleway and the removal of dozens of carparks near the University of Otago.
The Dunedin City Council flip-flopped on approving the project ahead of October’s election, before the new council voted it through 8-7.
Sushi Station owner Rebecca Song said the works, planned out to October, would "definitely" affect the Albany St business.
She had just experienced a significant disruption to her other restaurant due to lengthy pipe upgrades in Bath St.
Most of her Albany St customers were students who favoured convenience and Ms Song worried limited walking access, lack of short-term parks and construction dust and noise would drive them to other food outlets.
The project aimed to provide a safe walking and cycling connection between the shared Te Aka Ōtākou harbour path, Dunedin’s tertiary area and the CBD, and was timed to align with Three Waters work in the area.
"If it’s definitely better for the business, I don’t mind, but I’m pretty sure nobody wants [it]," Ms Song said.
"I really don’t understand why do we need that bike road. Do we see the people biking that road? So, I don’t know why they’re going to spend money and time, you know?"
Relitigation of the project by councillors delayed the project and meant completion was expected in October.
The work would span the university year — local businesses’ busiest period on which they relied, Ms Song said.
She also owned Bath St restaurant Izakaya Yuki, where council upgrades through about 18 months were coming to an end.
There, her business was affected by dust and limited parking.
"During the time, we lost a lot of customers ... I was thinking about selling the business."
The upgraded streetscape was an improvement, but it had caused a lot of "hard times", she said.
Sugar Boom co-owner Nigel Sharpe said the business had opened a temporary pop-up store in Albion Pl before Christmas.
But after they learnt the road works were going ahead, they decided to close the Albany St premises and move to Albion Pl permanently.
"With the loss of carparks, it was just easier for us to move.
"We estimated that 80% of our customers would be driving in and without having carparks out front, it just wasn’t going to work.
"We did have some regular customers that did like to come in, and we’re hoping that we’re still going to see them at our new place as well.
"Time will tell, I guess."
Mr Sharpe said he was "disheartened" and "disappointed" by the roadworks, but he was trying to stay positive.
"From our point of view, there’s not much point in sitting around worrying about it.
"This is what we were given and we’re just trying to make the best of it."
The council said it was unable to respond to the Otago Daily Times’ questions on the matter this week.
Last month, it said it would be "doing everything we can to support businesses and other parties affected by this work".
It also announced the project was over budget by almost $500,000.
A $4.8m contract was awarded to Isaac Construction in November — $3.5m for construction of the Albany Street Connection and $1.3m to reseal the road.
NZ Transport Agency Waka Kotahi was contributing a 51% subsidy towards both pieces of work, reducing the council’s share of total costs to $2.35m, a press release at the time said.
The Three Waters work — including renewal of service pipes and an ageing water main — is expected to take several days and cost $120,000.
Leith Liquorland owner Chris Hart said critics knew the project would be a "disaster — and it’s certainly shaping up to be one".
"You lose faith in people after discussing it ad nauseam because you don’t have any faith in those people any longer," he said.
