I came across this sentence but can't understand the grammatical structure. 

Despite there being a blizzard in the area, business remained open as usual.

In the phrase "Despite there being a blizzard," I can tell "there being" is an absolute phrase. Then why "despite" is used? Can an absolute phrase function as a noun phrase? 
Or is "there being" not an absolute phrase but a gerund? But if it is a gerund, that doesn't make sense in terms of grammatical structure. 

Why and how "despite" can be used with an absolute phrase?