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Fountain Square Construction impacting business

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Right now construction on Fountain Square’s drainage system is leaving parts of Shelby Street and Virginia Avenue closed. Now many businesses in the area are worried the months long construction project, may put them out of business in the long run.

Nick Detrich owns Magalena near Shelby St. and Morris St. In Fountain square. He opened the restaurant back in 2024. He said the construction is impacting him first hand.

“It is a hassle for our guests to get here, that’s probably the biggest way it’s impacting us,” Detrich said. “Not knowing what’s going on day to day. So sometimes there will be a new pile of dirt right in front of the door. Sometimes, they’ll barricade the sidewalk so they can’t access the restaurant.”

It’s a project years in the making to fix flooding in Fountain Square.

“Putting these giant pipes through the road, there is not an easy way to do that,” said Kyle Bloyd with the Indianapolis Department of Public Works.

Bloyd said Phase 3 of the project includes shutting down Shelby Street, a main thoroughfare into Fountain Square from the south.

Detrich said the construction is also impacting his deliveries.

“We get anywhere between 7 to a dozen deliveries a week and all those drivers are heavily impacted by it in terms of, they don’t know how to get here day to day because the traffic pattern will change relatively frequently,” Detrich said.

And he’s not alone.

‘Definitely have seen a huge fall off in new faces,’ Blake Peoples said.

Blake Peoples runs the West Fork Social House just a few stores down.

He’s among the many businesses now getting creative to get customers through the door.

“We’re doing a lot more social media stuff, a lot more pictures and stuff,” Peoples said. “Like I said, we’re trying to program a lot more events and just make sure there’s reasons to come out to fountain square.”

“We’ve said some playful things but you know every week it’s a little bit dire so there will probably be more concerted pleas coming from us,” Detrich said.

While there is a long way before construction is complete, Detrich hopes he can keep his doors open to see it through.

“I’m definitely worried. I mean, It would be great if we can make it to the end of this. Because the renderings that I have seen, look really good,” Detrich said. It would be great to make this place a lot more walkable, for all of the business down here. But it’s going to be a lot of pain and strife to get to that point.”

Indy DPW sent a statement Tuesday saying that construction should be completed by the end of 2026.

“Construction contractors are continuing work on the Fountain Square Drainage Improvements project. This impactful project is being coordinated extensively with utility groups, who are working ahead of construction crews.

Impacts to the area are being minimized by completing the construction in phases, which help keep as little of the roadway closed at once.

Despite a harsh winter, crews are still currently on schedule, with construction anticipated to wrap up in late 2026.

This project, which was originally set in motion by area business owners and the City-County Council, will resolve historic flooding issues in the area.

Residents can sign up to get the latest updates on this project here.

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