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To say times are tough at Delizia Pizzeria on Second Avenue is an understatement. Owner Giuseppe Pecora says business is off seven to 10 percent in an industry that already operates on thin margins.

"I had to take my outdoor café down," Pecora said. "It cost me over a hundred thousand dollars to build, and $21,000 to take down. And I've seen my regular customers, they're not coming as much."

It's no understatement to say Pecora is one of the lucky ones since he's still in business. Merchants say at least 10 stores have closed down along Second Avenue thanks to construction on Phase One of the subway, which will run from 96th to 63rd streets.

According to a recent survey by Public Advocate Betsy Gotbaum, the majority of businesses in the area are in danger of closing. The survey also shows nearly half of the business owners have laid off workers.

Gotbaum says the city and or the state could provide emergency grants, negotiate low-cost loans, provide property tax abatements or even suspend the sales tax at affected stores.

The MTA, for its part, says it's worked closely with the business community to address concerns and, among other things, promoted the Shop Second Avenue campaign. But most storeowners report the campaign has been a failure.

"I've seen the morale of the whole community down," Pecora said. "And I've seen that the government hasn't offered us any help."

"We're in such a desperate state here, and it seems like nobody except local businesses want to help us," said Peter Yoo of Buddha BBeeQ.

Eventually, businesses along Second Avenue should benefit from the opening of the new subway line, but that date keeps getting pushed further and further into the future. Originally scheduled for 2012, the MTA now estimates Phase One won't be complete until the year 2016.