MN SF2520

Appropriates $2,200,000 in fiscal year 2026 from the general fund to provide construction mitigation grants to small businesses affected by the MnDOT redesign and construction project on Arcade Street and East 7th Street in St. Paul.

Grants will be administered through an east-side St. Paul community-based development organization, with eligible businesses limited to those with 25 or fewer employees experiencing substantial impacts (impaired road access, parking, or visibility) for at least one month.

Grant prioritization criteria include decline in revenue, duration and proximity of construction, severity of traffic disruption, and lack of pedestrian/bicycle access.

Funds may be used for employee payroll, operating expenses, or facilities expenses, but are prohibited for bonuses, new equipment, capital improvements, or construction/expansion.

Commissioner of Employment and Economic Development must submit annual reports to the legislature by January 15 (beginning 2027) detailing grants awarded, including business names, addresses, types, and award amounts, until project completion.