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SF2520 (Legislative Session 94 (2025-2026))

City of St. Paul Arcade Street and East 7th Street construction mitigation grants to businesses affected by construction appropriation

Related bill: HF2427

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide financial support to small businesses impacted by construction on Arcade Street and East 7th Street in St. Paul, Minnesota. The bill establishes a grant program to help these businesses stay operational during the construction period.

Main Provisions

  • Establishment of Grants: The bill directs the commissioner of employment and economic development to collaborate with nonprofit organizations and community development financial institutions to distribute grants. These grants are aimed at aiding businesses affected by the construction projects.

  • Eligible Businesses: To qualify for these grants, businesses must have 25 or fewer employees and be significantly impacted by the construction activities, such as through impaired road access, parking, or visibility that lasts at least one month.

  • Grant Award Criteria: The grants will be prioritized based on several factors, including the decline in business revenue, duration of the construction, proximity to construction activities, severity of traffic disruptions, and access issues for pedestrians and bicycles.

  • Use of Grant Funds: Businesses can use the funds for employee payroll, operating expenses, and facilities expenses. The funds cannot be used for bonuses, new equipment, furniture, or capital improvements.

Significant Changes

This bill introduces a new financial aid program specifically for businesses affected by specific construction projects in St. Paul. It does not amend any existing laws but creates a new process for providing economic assistance in these circumstances.

Reporting Requirements

By January 15, 2027, and annually thereafter until the project is finished, the commissioner must report on the grants awarded. This report should include a list of businesses that received grants, the type of business, and the amount awarded.

Appropriation

The bill allocates $2,200,000 from the general fund for fiscal year 2026. This funding is designated for state management of the grant program and can be used until June 30, 2029. Up to two percent of the funds can be retained for administrative expenses.

Relevant Terms

  • Arcade Street
  • East 7th Street
  • Construction Mitigation
  • Grants
  • Small Business Assistance
  • St. Paul
  • Economic Development
  • Department of Transportation

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toTransportation
March 31, 2025SenateFloorActionComm report: To pass as amended and re-refer toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes new guidelines for grant awards based on the impact criteria."
      ],
      "removed": [
        "Did not specify any removal of existing clauses."
      ],
      "summary": "This bill involves consultation requirements with the business liaison for a construction project as per section 160.165.",
      "modified": [
        "Emphasizes the collaboration between the Department of Employment and Economic Development and the Department of Transportation."
      ]
    },
    "citation": "160.165"
  }
]

Sponsors