For Diego Almonte, opening a new location of his trendy women's clothing store, Me Boutique, in Jackson Square this month wasn't part of a grand plan to expand or change up his business.

It was survival.

A dedicated bus lane had a devastating effect on sales at his original location at 256 King St. W. (formerly called Metro) since it was installed a year ago.

"I've survived recessions, Mike Harris, days of protest, you name it," he said of his 20-year history. "I have customers who tried parking across the street and then risked their lives to cross the road and just said, 'we aren't coming back.'"

Last October, the city launched a one-year pilot project to convert one lane of King to transit-only. The far-right lane of King between Mary and Dundurn streets is now buses-only, except for vehicles turn right.

"The effect was immediate and devastating. It's so confusing for people to get around." Trevor Rowan, business owner However, now the project — seen as a litmus test for a potential east-west light rail transit line — will continue at least until January.

City staff were instructed to report back to council about the impact of the bus lane at the end of the one-year trial; however, the municipal election and anticipated additional costs of dismantling the bus lane has triggered a delay.

Staff will consider information such as traffic flow, congestion and parking in its report. Christine Lee-Morrison, the city's manager of mobility and special projects, said staff would also consider all comments and submissions from the public and stakeholders, including those already received from businesses.

While city staff couldn't provide cost estimates for dismantling the bus lane, Ward 2 Coun. Jason Farr said it wouldn't be cheap.

Backers of the plan argue it had the potential to increase business for downtown merchants by slowing traffic, giving drivers a chance to look around and maybe discover a shop they didn't know existed.

Farr said "an overwhelming" majority of businesses he personally polled in the King Street West BIA area (bordered by Queen and Caroline streets) were initially in favour. A few months after the dedicated bus lanes were installed, however, he counted about a dozen "No More Bus Lane" signs in storefronts.

"I would not define it as a success," he said. "However, there were elements of it that were successful. We have much more efficiency in that stretch."

But Troy Thompson of G.W. Thompson Jeweller and Pawnbroker at 190 King St. E. said all it has done is cause congestion and consumer complaints.

"It's not working," said Thompson.

Provincial transit agency Metrolinx put $300,000 into the project, but Farr said the cost has increased during the year, due to unanticipated costs of repainting the lane markings after the harsh winter, as well as extra signage. He was not sure of the final amount, but he said the overall project, including improvements to Lines A and B, initially cost $1.7 million.

Barry Sobel, owner of Rainbow Bridal at 105 King St. E., which celebrates its 87th year in business Saturday, said it will be devastating to some businesses on the street to put up with another Christmas shopping season with the bus lane intact.

"That's incredible that they don't even think of that," Sobel said.

Trevor Rowan, owner of the skateboard and clothing shop Flat Spot said he was forced to move from where he was for seven years into Jackson Square. He relocated last February.

"The effect was immediate and devastating," he said. "It's so confusing for people to get around."

Alphons Guirgues, owner of La Galleria Canada, said he moved from King to Jackson Square this month because, while traffic was bad before the bus lanes moved in, it died completely after it.

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"I feel sorry for the businesses left out there on the street," he said.