Atlanta Water Crisis: Economic Impact
Water may have been restored in Atlanta after a massive water main burst last week, but the economic fallout is far from over.
Atlanta – Water may have been restored in Atlanta after a massive water main burst last week, but the economic fallout is far from over.
Related news: Major road in Midtown reopens after burst water main repairs
Two major water main bursts occurred in Midtown and Vine City, leaving many businesses without water, including small businesses, some of which were forced to temporarily close and adapt their operations.
“I think I've lost about $3,000. I'm a small business owner who's already in a bind right now,” said Lance Robertson, co-owner of SBD+.
“We're expecting to do $4,000 to $5,000 a day in sales, which is a lot of money for a small business,” added Trinket Lewis, owner of More Life Juice.
Meanwhile, other pubs, such as Eleventh Street Pub, are yet to reopen.
Atlanta's water crisis hits some businesses hard
Help may be on its way soon for many Atlanta businesses that have reported thousands of dollars in losses due to a series of burst water pipes. But some small businesses say they need help now. Mayor Andre Dickens announced that the city will create a $5 million financial relief fund for businesses affected by the water crisis.
“We need to assess the humidity level in the pub, remove any mould and we have no idea when we'll be able to reopen,” Eleventh Street Pub owner Michael Taylor explained.
“We don't know how much was spent. We can do a post-mortem, but it's probably in the tens of millions of dollars,” said Tom Smith, a finance professor at Emory University.
Mayor Andre Dickens later announced a $5 million relief fund for businesses, which experts say will help but is unlikely to cover all of small businesses' losses.
Atlanta's water crisis: Help for small businesses
Small businesses have been hit especially hard by this crisis, with many forced to close every day since the water main burst. But they may soon get a boost: Mayor Andre Dickens said he will launch a financial assistance program for small businesses that have suffered losses during the crisis.
“They might cover a few cents on the dollar, maybe 25 or 10 cents, which would certainly help, but it probably wouldn't cover everything. But I think it would be very difficult for the city to come up with the funds to cover everyone's potential losses,” Smith explained.
Dickens said the city is working to repair and replace its aging water infrastructure in a move that will cost billions of dollars to complete, and experts say the long-term economic impact of the crisis is still unclear.
“Georgia is one of the top business-friendly states and Atlanta has a lot of proven track record with headquarters for Fortune 500 companies – international presence. I think we need to evaluate whether the fact that we have aging infrastructure will deter potential businesses. This could be a real threat to our economy,” Smith said.
