St. Paul; funding provided for construction mitigation grants to businesses affected by construction on Arcade Street and East 7th Street, report required, and money appropriated.

2025-2026 Regular Session Introduced by Athena Hollins and 2 co-sponsors

HF 2427 would provide state funding for construction-mitigation grants to help St. Paul businesses along Arcade Street and East 7th Street offset costs and revenue loss.

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy

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Purpose and scope

HF 2427 would provide state funding to support construction mitigation grants for businesses in St. Paul that are affected by construction on Arcade Street and East 7th Street. The bill aims to alleviate economic disruption caused by street improvements and help affected businesses maintain operations during the construction period. The program would be administered by the Department of Employment and Economic Development (DEED).

Key provisions

Funding and appropriation: The bill authorizes an appropriation to fund construction mitigation grants. Specific dollar amounts and the total appropriation would be set in the bill text.

Grants program: Establishment of a construction mitigation grants program to assist eligible St. Paul businesses affected by the referenced construction projects.

Administration: Implementation and administration would be carried out by DEED (the Minnesota Department of Employment and Economic Development).

Reporting requirement: The bill requires a report detailing program operations, grant awards, outcomes, and related information. This is intended to provide transparency and evaluate the program’s effectiveness.

Affected parties

Primary beneficiaries: Businesses located in St. Paul along Arcade Street and East 7th Street that are impacted by the construction projects.

Administrators: The Department of Employment and Economic Development (DEED).

Other stakeholders: Local employers, employees, and potentially property owners/tenants affected by construction activity.

Procedural and timeline aspects

Introduced: March 17, 2025.

Status: Introduction and first reading; referred to the House committee on Workforce, Labor, and Economic Development Finance and Policy.

Legislative path: As an introductory measure, HF 2427 would need committee action, passage by both the House and Senate, and signature by the governor to become law.

Related legislation: SF 2520 is the companion bill in the Senate.

Potential impact

Economic relief for businesses: By offsetting some costs or revenue loss associated with construction, the grants could help maintain business vitality and employment in the affected corridors.

Public accountability: The required report ensures ongoing oversight and assessment of the program’s impact.

Local focus: The program is narrowly targeted to two specific corridors in St. Paul, aligning state resources with documented local construction disruption.

Note: The summary reflects information available from the bill’s introductory materials. The full text would specify eligibility criteria, grant amounts or caps, application processes, match requirements (if any), funding duration, and precise reporting contents.

Bill