Work started in the first week of April and was scheduled to be completed within eight weeks.
Footpaths on both sides of Tarbert St were to be replaced as part of the project, each side to be done separately and taking three weeks per side.
Instead, parts of the footpaths and adjoining parking spaces are still blocked while workers complete the redevelopment.
Cafe Rossi owner Brent Ross said the footpath area outside his business was fenced off for six weeks and two days until recently, when work on that section of Tarbert St was finished.
He estimated takings had been down by between $100 and $150 each day during that period.
"I've had to cut staffing hours.
"We are just starting to get back regular customers we haven't seen in four or five weeks," he said.
Mr Ross said he and other business owners in central Alexandra were planning to hold a meeting about the redevelopment so they could voice concerns and approach the Central Otago District Council as a group.
"We are looking towards a rates reprieve from the council to offset some of our losses.
"We think that's only fair," he said.
Despite the project's slow progress, Mr Ross said Fulton Hogan Central, which was doing the work, had been great to deal with.
Other business owners spoken to by the Otago Daily Times agreed, and were keen to share their opinions of the project at a meeting, for which a date has yet to be decided.
Letters were sent to 75 business owners and occupiers in March, outlining details of the work.
CODC roading manager Julie Muir said the discovery of a large power cable under pathways, wet weather, and labour-intensive work had delayed the project.
She said stage one work began on April 20 and was expected to be completed early next week, when landscaping would begin.
"This includes some of stage two work as well.
"We are happy with the progress that has been made," she said.
Ms Muir said some business owners in Limerick and Rivers Sts decided, in conjunction with the council, some stage two work should be undertaken while equipment was in the area, rather than separately, in September.
"The disruption is better now than when foot and cycle traffic increases in September," she said.
Ms Muir said the project was not over budget.
Stage one was costed at $536,000, to be funded by a loan of $300,000 (to be repaid from rates), and the balance from a flood amenity fund.
