The city of Scottsdale has responded swiftly to concerns surrounding a road closure impacting Old Town traffic and access to local shops. On July 8, city staff received an email from a business owner regarding confusion caused by construction-related signage near 5th Avenue and Goldwater Boulevard.

The closure stemmed from infrastructure work required for a private development project located at the northwest corner of Indian School Road and 5th Avenue. The work included the installation of new water lines as part of the city’s approval process for the development.

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

Immediate action

Following the business owner’s notification, the city launched an internal investigation and quickly identified an issue: the project contractor had failed to meet the city’s requirement to notify neighboring businesses ahead of the work. Additionally, a poorly placed “Road Closed” sign at the scene gave the false impression that the entire road was inaccessible.

City staff took the following steps:

• Removed misleading signage that implied full road closure
• Deployed “Business Open” signs to reassure customers
• Visited the construction site to assess the situation and engage with affected business owners
• Posted updates on social media to spread awareness about ongoing access to area businesses

A strategic response

To prevent similar issues in the future, city staff developed a four-pronged response strategy:

1. Proactive outreach: A flyer was created and distributed to area businesses by July 14. Business owners expressed appreciation for the direct communication and personal visits.
2. Marketing support: A broader marketing approach is being developed to promote businesses that remain open during construction. This will serve as a reusable template for future projects.
3. Improved contractor compliance: Going forward, contractors must provide proof of advanced notice — such as mailed postcards to affected businesses — before the city issues street closure permits. Spot audits will verify compliance.
4. New staff position: The recently adopted FY 2025/26 budget includes a dedicated staff position to support and communicate with Old Town businesses. This resource will help prevent communication gaps and build stronger relationships.

Accountability and next steps

Scottsdale acknowledges the breakdown in communication and is committed to doing better.

“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 a continuous improvement approach, Scottsdale will continue enhancing its outreach to businesses impacted by development and infrastructure projects — especially in key areas like Old Town.