Senate committee advances bill to create mitigation fund for small businesses on Hwy. 61 construction corridor

Senate File 2520, a measure to create a mediation fund for small businesses affected by MnDOT road work on Highway 61, advanced out of the Minnesota Senate Transportation Committee on March 26, 2025.

The bill was presented by Senator Erin Hurr (author), who said the MnDOT project will pass through Maplewood and St. Paul's East Side business corridors and that the community has worked with MnDOT on design for five years. The construction phase is slated as two six‑month segments — a 2025 phase on Arcade (RK) Street and a 2026 phase on E. Seventh — and Senator Hurr said each six‑month period will include roughly three months of significant impact and about one month of severe impact for adjacent businesses.

The bill would establish a mitigation or mediation fund to provide limited relief to small businesses (described in testimony as “mom‑and‑pop” shops with 25 or fewer employees) to help cover basic expenses for a short duration during the most disruptive period of construction.

Nut graf: Supporters said the program is intended to keep walk‑up traffic‑dependent businesses solvent during construction; they asked the Transportation Committee to pass the measure to enable funding conversations with the Jobs and Economic Development Finance Department and the Department of Employment and Economic Development (DEED).

East Side Area Business Association director Perris Dunning told the committee that about 150 small brick‑and‑mortar businesses along the corridors would be eligible. Dunning said businesses face declining revenue from construction on top of economic shocks from COVID‑19, supply‑chain disruption and inflation. A written statement from Seiyansong, owner of Sun Moon Boba at 1440 Arcade Street, said her business depends entirely on walk‑up traffic and that construction blocking parking and access could cause long‑term damage to the business’s viability.

Committee members discussed whether the proposal should be localized or created as a statewide program administered by DEED. Senator Mike Jasinski said he prefers a statewide program administered through DEED; Senator Hurr and others said targeted relief is needed for the East Side and for communities with economic disparities. Committee members also noted prior challenges administering emergency business relief programs through DEED.

Senator Hurr moved the bill, as amended, for referral to the Senate Jobs and Economic Development Committee. The committee voice‑voted the recommendation to pass and refer; the motion carried.

The committee did not set appropriation amounts in committee; supporters asked the Jobs committee to consider funding and to work with DEED on administration.

Ending: With the referral, SF2520 will next be considered by the Jobs and Economic Development Committee, where supporters said they will press for allocation and administrative details.