SJ business owners decry economic impact of VTA expansion

SAN JOSE, Calif. – The lunchtime rush on Wednesday at La Grullensa restaurant in East San Jose is nearly non-existent. Only two of its 16 tables had seated customers. Owner Fernando Galindo said this is the worst downtown he’s seen in 33 years of business.

“Usually at this time I’d have at least six or seven tables and a couple of to-go orders,” he said. “I’m down a good 60-to-70%…yeah, it’s that bad.”

The source of the economic pain is just outside his business’s front door. The Valley Transportation Authority (VTA) is extending the Alum Rock light rail line south on Capitol Expressway, to Eastridge Mall.

“We wanna give that access to a huge population in east San Jose that depends on and uses public transit,” said Stacey Hendler Ross, a spokesperson for VTA.

But “access” is the key word because business owners in the Crossroads Shopping Center said they’re now at a crossroads due to a lack of customers. Some who frequent this area said traffic and construction make the trip untenable.

“It’s not easier to get on this side. I come from Eastridge Mall, so it takes a little bit longer to get here. So I try to avoid this side,” said customer Angie Pimentel.

The result had the Fast Pizza Delivery shop selling only one pizza pie through the lunch hour.

“How do we pay our bills? I haven’t even paid November rent yet, and this is December,” said owner Alex Waziri.

VTA and businesses along its light rail lines faced similar problems back when the Alum Rock extension was built about a decade ago. The authority admitted to making mistakes, and then contractor delays exacerbated a bad situation. But officials said they’ve learned from prior mistakes and have improved the process.

“We’re trying to do as much as we can to let people know the businesses are open. They want people to come in. There is access for them to get off the Capitol Expressway,” said Ross.

The authority has videos that highlight access to the Crossroads Shopping Center. Next year the Calvary is coming, via the non-profit “Prosperity Lab.”

“It’s all about planning strategy and having the kinds of support systems that can help them create the strategies, identify solutions,” said Executive Director Mimi Hernandez.

District 5 councilman Peter Ortiz said he’s fighting for new funding sources to protect small businesses impacted by construction. Many of the business owners at the Crossroads Shopping Center said the solutions need to come quickly, or they’ll be serving up pink slips.

“I’m at that point where I might consider shutting down because I’m in negative. I can’t even afford to make the rent,” said Galindo, who sheepishly admitted to dipping into his savings to keep his restaurant afloat financially.

Jesse Gary is a reporter based in the station’s South Bay bureau. Follow him on the Instagram platform, @jessegontv and on Facebook, @JesseKTVU