Article – The businesses along Stephen Avenue exhaled a collective sigh of relief this week as city officials announced a temporary pause to the disruptive water main replacement project that has transformed downtown Calgary’s historic pedestrian mall into what some merchants described as “an obstacle course.”
“We were watching our customer numbers drop by the day,” said Maria Sandoval, who owns Café Rosso on the corner of Stephen Avenue and 1st Street SW. “This pause couldn’t have come at a better time with patio season around the corner.”
The City of Calgary confirmed Tuesday it would temporarily halt construction along the popular downtown corridor after mounting pressure from local business owners who reported significant revenue losses since work began in January. The complex infrastructure project, which involves replacing century-old water mains beneath the historic avenue, will resume in September after the crucial summer tourist season.
Ward 7 Councillor Terry Wong, who represents the downtown area, acknowledged the difficult balance between necessary infrastructure upgrades and business vitality.
“These water mains are over 100 years old and absolutely need replacement,” Wong explained during a community meeting at the Fairmont Palliser Hotel. “But we’ve heard loud and clear that the timing and execution have created hardships for businesses still recovering from the pandemic years.”
The construction pause represents a rare mid-project shift for the city. Officials initially planned continuous work through November, aiming to complete the first phase of the three-year, $44 million infrastructure overhaul. According to city documents, the aging water mains have experienced 17 breaks over the past decade, with repair costs exceeding $3.2 million.
For Darren Hamelin, who operates Stephen Avenue Watch Company, the construction has been particularly challenging. “Our foot traffic dropped nearly 40 percent since February. People simply can’t navigate the construction maze to reach us,” he said while arranging displays in his shop window. “I understand the work needs doing, but the execution has been problematic from day one.”
The Calgary Downtown Association conducted a survey in April revealing that 73 percent of businesses along the affected corridor reported revenue declines between 25 and 60 percent compared to the same period last year. These figures ultimately prompted the Calgary Chamber of Commerce to formally request the construction hiatus.
“We’re talking about survival for some of these merchants,” said Deborah Yedlin, Chamber president. “With everything downtown has weathered—from office vacancy challenges to pandemic closures—this construction created a perfect storm for businesses operating on increasingly thin margins.”
The city’s decision wasn’t without controversy. The pause will add approximately $1.2 million to the project’s overall budget according to estimates from the City’s Infrastructure Services department. This additional cost stems from contractor penalties, equipment relocation, and the need to reopen and then reseal the work sites before resuming construction.
Calgary Mayor Jyoti Gondek defended the decision during Tuesday’s council meeting. “Sometimes we need to recognize when our approach isn’t working and make adjustments. The additional cost is significant, but the potential long-term cost of losing more downtown businesses would be far greater.”
The construction teams will now work to temporarily restore the avenue to a more navigable state before the Calgary Stampede in July, when thousands of visitors traditionally flood the downtown core. Temporary asphalt will replace current gravel sections, construction fencing will be minimized, and clearer pedestrian pathways will be established.
Mark Thompson, owner of Wise & Wright, a popular lunch spot on the avenue, expressed mixed feelings about the announcement. “I’m relieved to get a break during our busy season, but I’m also concerned about starting all over again in the fall. It’s a bit like ripping off a bandage slowly instead of quickly.”
The Calgary Downtown Association plans to launch a “Rediscover Stephen Avenue” campaign in June to help businesses recover lost ground. The initiative will include weekend street performances, extended patio permissions, and promotional incentives for downtown workers and visitors.
“We’ve got to remind Calgarians that these businesses are still here and still worth visiting,” said Carson Jones, executive director of the association. “Construction has a way of making people change their habits permanently if we don’t give them compelling reasons to return.”
As crews begin preparing the site for its temporary restoration, the question of whether the pause will actually help businesses recover remains open. Some merchants worry that the damage has already been done, while others see opportunity in the summer reprieve.
“At least now we have a fighting chance,” said Sandoval, glancing out at the construction equipment being moved from in front of her café. “Sometimes that’s all small businesses need—just enough breathing room to adapt and survive.”
The water main project is scheduled to resume September 9th, with completion of the first phase expected by early 2025.
