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Fountain Square roadwork squeezes Indy small businesses’ customers and appointments

Ongoing Indianapolis Department of Public Works construction in Fountain Square has disrupted traffic, parking and customer visits, business owners and residents say. Phase Three Shelby Street closures are part of a $14 million drainage project that began about nine months ago; parts of Shelby reopened in August but additional work and another project are pl

BUSINESSINDY BRIEFBy BusinessIndy Editorial StaffSeptember 2, 2026 at 3:14 PM EDT

About nine months ago the Indianapolis Department of Public Works launched a $14 million Fountain Square Area Drainage Improvements Project that has required full closures on stretches of Shelby Street during Phase Three while crews worked on drainage infrastructure, paving and sidewalk restoration. Large sections were closed from Morris Street north to Cottage Avenue; in August Shelby Street reopened between Sanders Street and Pleasant Run Parkway North Drive, yet residents report ongoing traffic and parking headaches.

Local business owners and visitors say those disruptions are hurting foot traffic and daily operations. Wild’s Barbershop owner Cody Potter said fewer people attend monthly First Fridays and that Virginia Avenue participation has declined. University of Indianapolis student Katie said she visits Fountain Square far less often. Salon Honey manager Dani Chol said unpredictable closures lead clients to arrive late and cause stylists to fall behind. After work on Shelby, Prospect and Virginia, another construction project is expected to begin in early 2027.

BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.

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