With the Milk movie entering into its third week of production, some Castro merchants have begun to sour on the filming taking place outside their doors.

Several business owners and employees of stores along the 500 block of Castro Street contacted the Bay Area Reporter in the past week to complain that the filming has turned their shops into ghost towns.

While they insisted they are glad to see the story of the late Supervisor Harvey Milk, the first openly gay man elected to public office in the United States, turned into a major motion picture, they questioned if having it filmed in the Castro was worth the cost to their bottom lines.

"It has really impeded on my business. We are losing $400 to $500 a day," said Cecil Russell, the owner of Always Tan Skin and Body at 550 Castro Street. "Harvey was a small business owner. He would be against this."

Russell said customers to his business have found it a hassle to navigate through the film set. He also complained that cars being used to give the film a period look from the 1970s have hogged valuable street parking.

"Many small business owners are not happy they are interfering with business during a recession," he said. "We thought it would be a low impact production. We didn't realize there would be 30 old cars parked on the street and all these caterers' vans."

Other store owners on the 500 block of Castro Street grumbled to a San Francisco Chronicle reporter about being offered only $200 a day in compensation for the impacts the movie is causing. Both stores refused to allow their awnings to be changed to resemble the businesses that had been there during Milk's days.

Two workers at nearby stores also voiced complaints to the B.A.R. about how the filming was disrupting business. Both men declined to be identified for fear that going public would cause a backlash against the stores and only further drag down sales.

One man works at a store near the gift shop Given, which closed down in order for the film crew to revert it back to how it looked when it housed Milk's camera shop. He said while crowds mulled around outside to watch the filming, no one was shopping in the store.

"I originally was very excited about the movie being filmed here, however, I have to say that I wish my pocket book held the same excitement that I used to," wrote the man in an e-mail. "The sales in my store have completely tanked and because of that our monthly goal has not been reached, which means that I do not get a bonus this month."

A spokesman for the production company declined to comment about the complaints. The film crew met with merchants twice last year to discuss what they could expect and pledged to have as minimal an impact as they could on the neighborhood. Nonetheless, director Gus Van Sant warned business owners the filming would bring some disruptions.

"I know when people think of a movie coming into town they imagine it will be a circus atmosphere. I am hoping it isn't as big of a circus," Van Sant said at the time.

Supervisor Bevan Dufty said he has fielded several calls from irate business owners and Castro residents upset by the filming. He said he has been in constant contact with representatives from the production company to try to address the problems.

"It is difficult. We have not had a lot of filming going on in the Castro," said Dufty.

He said he has personally apologized to several storeowners who have seen foot traffic drop in recent weeks. But he said in the long-term he believes the movie will be a benefit for the business district.

"It is really tough. We wanted this movie to be here," said Dufty. "They have tried to be good neighbors."

Other merchants said the movie could not be solely blamed for a drop-off in business in recent weeks. The nonstop rain the last weeks of January and Pacific Gas and Electric's continuing work in the Castro – which also took up scarce parking spots – likely also kept customers out of the neighborhood.

"I can say yes, my business has suffered, but how much can it be put off to the rain or to the fact that it is the month after Christmas when bills come due or with PG&E being here during the same time as the film crew. It is a perfect storm of bad events, frankly," said Patrick Batt, who owns the 18th Street stores Mercury Mail Order and Auto-Erotica.

Batt, a former president of the area's merchant association, said he had heard little grumbling from fellow storeowners about the filming. He said several merchants he spoke with were pleased to have received $3,000 for allowing their signs to be changed.

He did close his shop up early Monday night, when filming of a reenactment of a street march closed Castro Street between 18th and 19th streets.

"I closed an hour and a half early last night. There was no business after 6 p.m.," Batt said Tuesday afternoon.

Despite the short-term inconveniences from having the movie made in the Castro, Batt said, "I think it ultimately will be a boon for the neighborhood and commerce in the neighborhood once the country is exposed to the film."

Storeowners can expect to share the Castro with the film crew for another week. Shooting in the neighborhood should wrap up by Friday, February 15.