Downtown Plaza Business Owner: Half of Business Gone Because of Arena Construction

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DOWNTOWN SACRAMENTO-

After 7 years at the Downtown Plaza,  the owner of Gyro Supreme fears his future at work and at home are in danger.

"I'm afraid to lose my house. Because  if I cannot keep an income, I have no other choice - maybe it's to lose my house. That's my biggest fear, it's the thing you work your whole life for," said Owner Nadeem Haddad.

Haddad says he's lost most of his customers and has seen a 55% drop in business since the new arena construction started next door about three months ago.

Business owners told us the company that manages the mall JMA ventures LLC, notified tenants that it may close the west side of the mall to redevelop it.

Haddad doesn't know if the plan will include his food court.

"We don't know anything. We are just kind of in the dark. Nobody's telling us anything," said Haddad.

He says if things keep going the way they are, he's going to move.

"Financially I cannot sustain the loss I am facing right now," said Haddad.

But not all businesses are struggling because of arena construction. J-E Paino, from Ruhstaller Brewery and Tap Room, opened his place to the public in April right next to the mall. He says he's seen a boost in traffic.

"We're definitely happy.  We knew it would be tough when we opened. It's a transitional area, if you will. But we can kind of roll with those punches," said Paino.

Todd Chapman, president and CEO of JMA Ventures, LLC, the operator of Sacramento Downtown Plaza, released the following statement to FOX40:

"We acknowledge that the beginning stages of the transformation of Sacramento Downtown Plaza have presented some uncertain times for tenants, and we appreciate their patience and flexibility.  During the redevelopment process, which will bring a new Entertainment and Sports Center (ESC), as well as a newly invigorated shopping experience to the heart of Sacramento, JMA has been in close communication with all tenants to inform them of the possibility of a west mall closure to allow ample time to find new space - if they so desire. Our team has communicated to these tenants that they are welcome to remain open as long as feasible during the center's redevelopment, and we have discussed with them the opportunities that may exist once merchandising plans have been solidified.  Macy's, the Theatre, and 24 Hour Fitness will continue to operate throughout the entirety of the construction and development process in their current locations."

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