SCHENECTADY — Artisans and local merchants on Jay Street are prepared for the disruption of their businesses during the $12 million renovation of the Center City complex but say they hope the new development will boost downtown.

The Galesi Group is gutting the third floor of the complex as part of renovation of the space for retail businesses, commercial and professional offices and apartments.

In the process, merchants will be displaced from the Jay Street Studios, operated by Proctors. In addition, the Downtown Schenectady Improvement Corp. and a city police substation will have to find new space. Innovations, a gift shop operated by the Schenectady Museum and Suits-Bueche Planetarium, is shutting down. The Blackwatch soccer organization is relocating its soccer program after the summer, but the indoor rock-climbing wall and gym will stay.

Michelle Bynoe, owner of Inspired bookstore, said jackhammering has started on a part of the building. “It was a lot of noise,” she said.

Bynoe said business owners on Jay Street have gone through construction before. She is excited about the new retail space the owners of Center City are planning because she thinks it will stimulate foot traffic.

“If they go shop there, they’re more likely to shop here too,” she said.

Paisa Miser owner Ashok Mirpuri expects disruption in the short term. “You’ve got to live with it, I guess. We need things like this to go on to promote the downtown retail businesses.”

“You’ve got to be positive.”

Other merchants like Carol Markytan, owner of Glassy Beads, said she is willing to put up with some inconvenience. “We’re looking forward to a good change in bringing lots more people downtown.”

Kim Williams, of Trinity Storm Designs, said it would be nice if the businesses were compensated on their rent if they do lose a lot of business.

Nancy Niefield, owner of Two Spruce Pottery, is excited about downtown changes. She said that the Downtown Schenectady Improvement Corp. knows it has to keep businesses in the loop about the changes.

“Hopefully, they will keep us in mind and try to make it as unobtrusive as possible.”

DSIC Executive Director James Salengo said the organization hopes to arrange a meeting between the developers and the merchants so they can get an understanding of the project’s scope and schedule. The DSIC will try to make sure direct access to storefronts is maintained and encourage loud or messy work to take place outside of peak business hours.

“We can’t directly control that but we can be a voice for the businesses,” he said.

DSIC hopes to find its own 3,000-square-foot, street-level space downtown in the next couple of months, he added. Efforts are also under way to find new space for the artisans. Proctors Chief Executive Officer Philip Morris said he is working to find comparable space on Jay Street for the Jay Street Studios. “We’re pretty confident that we’ll be successful,” he said.

Painter Debi Angilletta said merchants are looking at the former Earthly Delights space. “We’re trying to see if it’s economically feasible for us,” she said. “We’ve got until Nov. 30. We’re hopeful we can find something so we can all stay together here.”

She said she likes the energy on Jay Street. “There’s lots of activity, especially during lunch time and the Art Nights,” she said.