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Highway 101 project moves ahead as businesses feel the impacts

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A major, multi-year effort to improve the Highway 101 corridor through Goleta is moving forward, but the construction is bringing mixed reactions from residents and business owners.

Project Connect includes upgrades to bridges, roadways and intersections, as well as improvements to pedestrian and bicycle connections. The goal is to reduce congestion and make it easier for people to move through the area.

Crews are currently working overnight at the Creek Bridge from 10 p.m. to 6 a.m. The overnight work is expected to continue through Wednesday, August 12.

For some businesses along the corridor, the construction has meant fewer customers.

Esteban Penaloza, owner of La Guerrerita, said the restaurant has been in business for eight years and has felt the impact of the ongoing work.

“We’ve definitely seen a decrease in customers since construction began, particularly a decrease in customers that visit us from other places,” Penaloza said.

Penaloza said he understands the construction is temporary, but hopes business will rebound once the project is finished.

“I want people to know we’re open, we’re here and we’re going to continue to be here,” he said.

The construction has drawn mixed reactions from the community.

A month ago, we spoke with residents and business owners about the progress of the project and the impact they were already seeing.

Jerry Ferraro, manager of Trek Santa Barbara, said the changes have also brought benefits, particularly for commuters and businesses.

“But now you don’t see that traffic. It’s been a success in our eyes, as a commuter and business manager,” Ferraro said.

City officials say the overall project is now targeted for completion in spring 2027.

The project has an estimated total cost of about $100.6 million. Funding comes from a combination of federal and state grants, Measure A and local funds.

For businesses like La Guerrerita, the hope is that the disruption will pay off once the work is complete and the corridor is easier to navigate.