Scottsdale addresses business concerns over 5th Avenue construction impact

Lisa Borowsky, Mayor
Lisa Borowsky, Mayor - ScottsdaleAZ.gov
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The City of Scottsdale has addressed concerns regarding a road closure affecting traffic and access to local shops in Old Town. On July 8, a business owner emailed city staff about confusion caused by construction-related signage near 5th Avenue and Goldwater Boulevard.

The closure was due to infrastructure work for a private development project at the northwest corner of Indian School Road and 5th Avenue, which included installing new water lines as part of the city’s approval process.

While the city typically discourages construction projects in Old Town during peak business months (November through April), summer is designated for such work based on feedback from the business community.

After receiving the notification from the business owner, the city conducted an internal investigation and identified that the project contractor failed to notify neighboring businesses ahead of time. Additionally, a poorly placed “Road Closed” sign gave the false impression that the entire road was inaccessible.

City staff took immediate action by removing misleading signage, deploying “Business Open” signs, visiting the construction site to engage with affected business owners, and posting updates on social media to inform about ongoing access to area businesses.

To prevent similar issues in the future, city staff developed a four-pronged response strategy. This includes proactive outreach with flyers distributed to area businesses by July 14, broader marketing support for businesses open during construction, improved contractor compliance requiring proof of advanced notice before issuing street closure permits, and spot audits for verification. Additionally, a new staff position has been included in the FY 2025/26 budget to support communication with Old Town businesses.

Scottsdale acknowledges communication breakdowns and commits to improvement. “There was an unfortunate lack of communication to the 5th Avenue businesses by the contractor,” City Manager Greg Caton said. “We take responsibility for not ensuring the city’s requirements had been met and have revised our process to ensure adherence.”

As part of continuous improvement efforts, Scottsdale will enhance its outreach to businesses impacted by development and infrastructure projects in key areas like Old Town.



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