HF 2427

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/17/2025 02:59 p.m.

A bill for an act
relating to transportation; employment and economic development; appropriating
money for construction mitigation grants to businesses affected by construction
on Arcade Street and East 7th Street in the city of St. Paul; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin ARCADE STREET AND EAST 7TH STREET CONSTRUCTION
MITIGATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development, in consultation with the commissioner of transportation, must make grants to
nonprofit corporations and community development financial institutions in St. Paul to
award financial assistance to qualified businesses affected by construction and redesign
projects on Arcade Street and East 7th Street for the purpose of maintaining the business
during the project.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Arcade Street and East 7th Street redesign and construction project" or "project"
means the construction and redesign along Arcade Street and East 7th Street in the city of
St. Paul by the Department of Transportation.
new text end

new text begin (c) "Qualified business" means a business that employs no more than 25 full-time or
part-time employees and experiences substantial business impacts as a result of the project.
new text end

new text begin (d) "Substantial business impacts" means impairment of road access, parking, or visibility
for one or more qualified businesses as a result of the project, for a minimum period of one
month.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin (a) The commissioner of employment and economic
development must enter into an agreement with nonprofit corporations and community
development financial institutions in St. Paul with familiarity and experience in economic
development activities on the east side of St. Paul. Upon agreement with the commissioner,
the selected nonprofit corporation or community development financial institution must
prioritize the awarding of each grant on a case-by-case basis, including but not limited to
the following criteria:
new text end

new text begin (1) rate of decline in revenue;
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new text begin (2) duration of construction;
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new text begin (3) proximity of construction;
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new text begin (4) severity of traffic disruption; and
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new text begin (5) lack of access for pedestrian and bicycle traffic.
new text end

new text begin (b) When determining grant awards, the commissioner of employment and economic
development must consult with the commissioner of transportation and with the business
liaison designated for the project under Minnesota Statutes, section 160.165.
new text end

new text begin (c) Grant money awarded under this section may be used for employee payroll expenses,
operating expenses, or facilities expenses. Grant awards must not be used for bonuses; new
equipment, furniture, or capital improvements; or construction or expansion.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By January 15, 2027, and annually thereafter on January 15 until the
project is completed, the commissioner of employment and economic development must
submit a report on the grants awarded under this section to the chairs and ranking minority
members of the legislative committees with jurisdiction over employment and economic
development and transportation finance and policy. At a minimum, the report must include
a complete list of grants awarded in the previous calendar year, including business names
and addresses, types of businesses, and the amount of each award.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $2,200,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of employment and economic development for the grant awards in section 1. Notwithstanding
Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may retain up to two
percent of this appropriation for administrative costs. This is a onetime appropriation and
is available until June 30, 2029.
new text end