Over the course of the recent construction season, major state road work along Arcade Street has alarmed businessowners, some of whom were unaware long swathes of the corridor would be closed in both directions for months at a time.
Even those shop owners who attempted to keep track of road closures were surprised to discover last March that the Minnesota Department of Transportation had rolled out multiple phases of construction at once, limiting business access almost entirely to side streets.
Working with state lawmakers, three East Side business and neighborhood organizations successfully advocated during the recent legislative session for grant funds to help small businessowners through construction.
Sen. Foung Hawj, DFL-St. Paul.
Leaders of the East Side Area Business Association, East Side Neighborhood Development Company and Payne-Phalen Community Council said state Sen. Foung Hawj, St. Paul-DFL, was instrumental in helping to secure the $250,000 in business mitigation grants for businesses along Arcade Street, which is also a state highway — Minnesota 61.
“This will help the hardest hit businesses,” said Paris Dunning, executive director of the East Side Area Business Association.
Organizers hope to support up to 50 small businesses with grants of up to $5,000, which will be geared toward businesses with fewer than 25 employees located within the active construction zone. Details of the grant program are still being fleshed out, but the East Side Neighborhood Development Company is expected to review applications and handle distribution.
In a legislative session that otherwise involved few perks for the capital city, lawmakers called the funds a rare win.
“This legislative milestone was built on recognizing the economic impact of state-led infrastructure projects on neighborhood corridors,” said Hawj, in a written statement. “We fought hard for our community to get this relief. And it took persistent optimism at every stage of the process.”
The MnDOT began a two-year road reconstruction project in March along both East Seventh Street and Arcade Street, between Interstate 94 in St. Paul and Roselawn Avenue in Maplewood.
Some of that work, initially planned in back-to-back segments, has rolled out concurrently. State transportation officials have said coordinating with utility companies for underground utility replacements — including lead pipe removal — required shifting schedules around, and information about the new schedule had been shared at a community meeting in March.
Through early fall, construction will limit business access along Arcade Street from Wheelock Parkway to Maryland Avenue, from Maryland Avenue to York Avenue, from York Avenue to Frost Avenue, and between Magnolia Avenue and Sims Avenue.
Most of the work along East Seventh Street will take place in 2026.
More information on the project is available at: dot.mn.gov/metro/projects/e7th-arcade/index.html.
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