The Valley Transportation Authority announced Thursday it will provide $1 million in grants to support businesses impacted by a light-rail extension in San Jose.
Businesses recently told NBC Bay Area they may have to close and blamed VTA’s Eastridge to BART Regional Connector, which has called for lane and road closures during construction. The project started in the summer of 2024 and is estimated to be completed in 2028.
“If the situation doesn’t change, then it’s gonna be very hard to stay open,” La Grullensa Restaurant owner Fernando Galindo said.
Galindo said his restaurant on Capitol Avenue has been heavily impacted since the project started. La Grullensa has lost 60% to 70% of its business since construction started, Galindo said.
VTA will now provide up to $50,000 in grants for businesses impacted by the construction.
Galindo said the grants are a Band-Aid and not a cure.
“I owe expenses. I owe a lot of my vendors, I still owe them money,” Galindo said. “If I do get the help and that money, it will go towards them.”
The restaurant could still be forced to close in a matter of months even with the VTA help.
The grants will not be enough to save Fast Delivery Pizza, which is next door to Galindo’s restaurant.
Fast Delivery Pizza owner Alex Waziri said he appreciates the VTA grant but does not have a choice.
“We’re not making money,” Waziri said, adding he can no longer afford a delivery driver.
San Jose businesses around the site of the Valley Transportation Authority’s light rail extension construction are blaming the project for impacting their bottom line and possible closures. Damian Trujillo reports.
Santa Clara County Supervisor Sylvia Arenas, who sits on the VTA board, said the staff should have reacted to the predicted business losses much sooner.
“It’s a level of disappointment rather than anger,” Arenas said. “But it could be a combination of both. We already know the research. That’s the most frustrating part of this.”
