Senate committee backs bill to create mediation fund for East Side small businesses during Highway 61 work

St. Paul — The Senate Transportation Committee voted to recommend Senate File 2520, a bill intended to create a short-term mediation fund to help small businesses affected by Minnesota Department of Transportation (MnDOT) construction along Highway 61 through Maplewood and the East Side of Saint Paul.

Sponsor Sen. [Senator] Ann H. Hur told the committee the project will run in phases, with construction on Arcade (RK) Street expected to last six months in 2025 and Easton Street expected to take a similar six-month period in 2026; within each six-month window, Hur said three months would cause significant business impacts and one month would cause severe disruptions. The bill would allow small businesses with 25 or fewer employees to apply for relief to cover basic expenses and help “keep the doors open,” she said.

The bill’s author said the request reflects five years of community engagement on the project’s design and aims to prevent a wave of permanent closures among businesses that rely primarily on walk-up traffic.

Nut graf: Committee members recommended the bill be referred to the Senate Jobs and Economic Growth Committee so its funding mechanism can be considered by the agency that administers business and job-related grants. Supporters said the mitigation fund is narrowly targeted to short-term losses during a highway construction project and is intended to preserve local commerce that generates sales and property tax revenue.

Details and testimony

Perris Dunning, director of the East Side Area Business Association, told senators the association estimates about 150 brick-and-mortar small businesses along the corridors would be eligible for aid. Dunning said road construction is far more damaging to small businesses than to drivers and described conversations with MnDOT and committee members about how mitigation could align with the highway’s role as a community lifeline.

Marsha Allen, a business specialist working with East Side entrepreneurs, read a written statement from Sun Moon Boba owner Seiyansong (Sun Moon Boba, 1440 Arcade Street). The owner said the family-run shop depends on walk-up traffic and that six months of construction “will directly affect the accessibility of our parking lot on an already busy street,” adding that without assistance the business could suffer long-term harm.

Committee response and next steps

Sen. Zach Jasinski and other members expressed support for the bill’s intent but asked whether a broader, statewide program administered by the Minnesota Department of Employment and Economic Development (DEED) might be preferable. Jasinski said a statewide program could avoid labeling one area as the only eligible location when other corridors face similar disruption.

Sen. Hur acknowledged those concerns and asked for referral. The committee recorded a voice vote on the motion to recommend the amended Senate File 2520 and refer it to the Jobs Committee; the motion carried by voice vote (committee did not record individual roll-call tallies). The committee chair said the Jobs Committee will consider the funding mechanism.

Ending: The bill now moves to the Senate Jobs and Economic Growth Committee for consideration of funding and administration. Committee supporters said they will continue outreach to colleagues to secure funding and to clarify whether DEED or another entity would administer the mitigation dollars.