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As construction of a trolley in downtown Santa Ana continues to disrupt local businesses, the Orange County Transportation Authority agreed Monday to give the city nearly $680,000 to make up for parking revenue losses.

The OCTA approved reimbursing Santa Ana up to $679,748 for lost parking revenues and other costs incurred between February 2022 and December 2022.

Earlier this year, workers began installing railways for the OC Streetcar on Fourth Street in Santa Ana, disrupting traffic and the flow of customers to the shops and restaurants that make up the city’s historic downtown core.

Shortly after, the city began offering free parking in four multi-level downtown parking structures from 7 a.m. to 5 p.m. The one-time reimbursement from OCTA will help the city recoup its losses and expand free parking to the evenings and weekends, Mayor Vicente Sarmiento said Monday afternoon. Additionally, it will cover additional security costs, according to OCTA.

“The downtown has, in essence, been shut down for the past seven months,” said Sarmiento, who also sits on the OCTA board. “This will provide another reason for people to come and visit downtown and help the businesses that have been severely impacted during construction.”

In a statement, Orange County Supervisor Katrina Foley said: “This funding creates another opportunity to help local businesses and the City of Santa Ana in remaining whole despite the unforeseen delays.”

Dana Jazayeri, owner of the Unlisted retail gift shop, would like to see some of those funds shared with Fourth Street businesses.

“It’s a nice gesture,” he said of the OCTA disbursement. But the money doesn’t provide any immediate benefit to business owners like himself who have seen their walk-in customers and revenue drop precipitously during construction, Jazayeri said.

Jazayeri and other business owners have received grants to compensate for some of their losses, but he said it’s not enough.

In May, the Orange County Board of Supervisors approved Foley’s proposal to offer $1.2 million in grants, from the 2021 American Rescue Plan Act funds, to business owners impacted by the construction. And earlier this year, the City Council approved $3 million in grants to businesses — $1.5 million in March and another $1.5 million as part of the new fiscal budget — along with free parking in the four downtown-area garages.

in March, the Santa Ana City Council approved a $1.5 million business interruption fund along with free parking in the four downtown-area garages.

“The city and county’s assistance is appreciated, even though it isn’t significant enough to supplement our full losses,” Jazayeri said.

In recent months, workers opened parts of Fourth Street, and earlier in September, it was expanded to a more extensive stretch — between French and Sycamore — with two open lanes.

“If everything goes well, our Four Street segment will be done soon, or after Thanksgiving, so we can salvage the Christmas holidays for these merchants,” Sarmiento said.

Once completed, the 4.15 mile-long OC Streetcar route will run from the Santa Ana Regional Transportation Center, home to train and bus services, throughDowntown Santa Ana and the Civic Center to Harbor Boulevard in the City of Garden Grove. The $509 million project is anticipated to open in 2024.

This story was updated on Sept. 15, 2022 to reflect that the Santa Ana City Council approved two business grant rounds of $1.5 million each, for a total of $3 million in grants to businesses impacted by the trolley construction.

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