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The 485-ton, 450-feet-long machine will dig through about 50 feet of bedrock each day, starting at 92nd Street until it reaches 63rd Street by November 2011.

The cutter was delivered in pieces over the past few weeks.

The MTA says it is working to minimize the negative impact of the construction on residents and businesses in the area.

"We're working incredibly closely with businesses, we have a program working with businesses and community boards to try to take away the impacts that come from the construction project,” said MTA Chairman Jay Walder. “Look, one cannot miss the fact that a project of this magnitude does have impacts on the community, but we're working very closely with them and trying to mitigate that as much as possible."

However, many local businesses say they are struggling to stay afloat.

"This project has been started and restarted, delayed and re-delayed and the merchants and the residents pay the ultimate price for it because business is down, in some places 30 percent," said Joe Pecora of Delizia Restaurant.

"People might not notice the restaurant is open because there's a lot of fencing and blockage here," said Jocelyn Chow of Uptown Cottage. "Some of the stores are open, some of the stores are closed so that will affect business too."

Residents have also been affected. Jane Foss, who lived in a Second Avenue rowhouse that is being stabilized by steel cables, was forced to vacate last June for two-and-a-half months.

"Living in a welfare hotel was not how I wanted to spend my summer," said Foss.

"It's very dangerous and they've really decimated the area. All these buildings and all these businesses are closed," said resident Linda LaValle.

Local politicians have launched a campaign designed with merchants in mind

"We want to encourage all New Yorkers to come and shop on Second Avenue and to support these businesses, because they obviously have a lot of construction in their midst," said Manhattan Councilman Daniel Garodnick.

The first phase of the Second Avenue subway construction was originally set to be completed in 2013, but the MTA says a more likely deadline is December 2016. The subway will run from 125th Street to the Financial District.