HF 3028 would boost the capacity of organizations like the Lake Street Council
The Minnesota legislature is considering two bills to bring much-needed economic development support to the Twin Cities - HF 3028 and SF 3035. These bills would provide critical government funding to small businesses and organizations along our commercial corridors that continue to rebuild from the civil unrest of 2020, historic disinvestment, and institutional barriers.
Each bill is a critical step forward in Lake Street’s recovery. We applaud Representative Hodan Hassan and Senators Bobby Joe Champion, and Zaynab Mohamed for their leadership in advocating for these much-needed local dollars. However, to make a truly lasting investment in the many small businesses and organizations rebuilding across the Twin Cities, the key differences that exist between each bill must be reconciled before a final version heads to Governor Walz for his signature into law.
We believe that HF 3028 will foster a stronger, more flexible approach to economic development by expanding the capacity of local community and business groups across each commercial corridor through direct funding allocations, which enables recovery and revitalization to be driven at the local level by local partners. One of these community partners would be the Lake Street Council, which HF 3028 identifies as being a potential recipient of a $10.85 million allocation.
In addition to replenishing our We Love Lake Street grant programs that have supported hundreds of small businesses over the last several years, this funding would also allow the Lake Street Council and other partner organizations to continue providing critical strategic direction and assistance to individual businesses; leading physical area improvements; and supporting engaging programming and initiatives that help draw visitors to our vibrant commercial corridor.
We need your voice. You can help by asking your legislators to invest in the future of Lake Street by supporting HF 3028 which provides funding for the Lake Street Council and other commercial corridors.
To find your legislator, click here. Below is a template email you can personalize to use as a resource when contacting them. Contact information for House and Senate leadership is also below, with additional information about the key differences in how each bill provides support for Lake Street.
REDEVELOPMENT FUNDING
Neither House nor Senate bill allocates funding to the Minnesota Main Street Economic Revitalization Program. This program was initially funded in 2021 and saw a number of grants go to Lake Street businesses.
HF 3028 allocates at least $62 million to the City of Minneapolis for forgivable loans for real estate development projects. These funds would be added to the city’s already successful Commercial Property Development Fund and capped at $500,000 per business.
HF 3028 allocates $3 million over two years to the Local Initiatives Support Corporation (LISC) for predevelopment grants, technical assistance, and a loan program for the development and construction of commercial and residential projects in areas negatively affected by civil unrest.
HF 3028 allocates $17 million for a statewide Emerging Developer Fund Program that would enhance the capacity of individuals who have been historically underfunded and excluded from pursuing a career in the property development field. SF 3035 allocates $3 million to this same fund.
ONGOING BUSINESS SUPPORT
HF 3028 utilizes a new “Empowering Enterprise Program” to provide ongoing business support in the metro area and allocates $10.85 million to the Lake Street Council, in addition to providing funds to partner organizations that serve other areas impacted by civil unrest, including the Northside Economic Opportunity Network and the Midway Chamber of Commerce.
These funds may be used for business and nonprofit grants or loans up to $500,000.
Funds can also support corridor-wide improvements that uplift impacted corridors, invest in physical improvements, and enable the return of the customer base through marketing, placemaking, public art, special events, safety initiatives, etc.
SF 3035 relies on a revamped “Promise Act” to support economic development in the metro area and allocates $21 million to Lake Street, 38th & Chicago, and Riverside corridors. These funds can be used for two purposes:
$13 million to provide grants of up to $50,000 to businesses and nonprofits with annual revenues under $350,000.
$8 million for three percent, 10-year loans to businesses with less than $1 million in gross annual revenue. Loans would be capped at $1 million, with priority given to projects that didn't receive Main Street funding and to developers who are Black, Indigenous, or People of Color; women, and veterans.
As HF 3028 advances during session, we hope legislators consider a couple of changes to expand coverage of recovery programs, including:
Increasing the $500,000 funding cap, specifically for redevelopment projects, to several million dollars.
This increase would match up with the current financing gaps we are tracking on rebuilding projects along our corridor.
Provide direct funding for 38th St./George Floyd Square.
We are advocating for the following changes to SF 3035:
A fund for forgivable loans or grants for real estate redevelopment projects, specifically to rebuild properties that were damaged during the civil unrest.
Raising the revenue cap to provide an opportunity for mid-sized local businesses to apply for grants and not just the smallest of businesses.
Funding to uplift impacted corridors, invest in physical improvements and enable the return of the customer base.
Include long-term planning, corridor branding and marketing, placemaking and public art, special events, safety initiatives, etc.
This kind of whole-corridor approach has been successfully implemented by the Lake Street Council for the last three years and is included in the House bill.
Read a summary of HF 3028 here and watch public testimony here.
Listen to public testimony of SF 3035 here.
If you have questions about either piece of legislation, please contact Russ Adams at Russ@lakestreetcouncil.org or 612.438.6338.
Majority Leader Jamie Long (61B, DFL)
651-296-5375
rep.jamie.long@house.mn.gov
Speaker of the House Melissa Hortman (34B, DFL)
651-296-4280
rep.melissa.hortman@house.mn.gov
Majority Leader Kari Dziedzic (60, DFL)
651-296-7809
sen.kari.dziedzic@senate.mn
Senate President Bobby Joe Champion (59, DFL)
651-296-9246
sen.bobby.champion@senate.mn
Template email to send to your legislator
While personalizing the letter to fit your voice is most impactful, remember to first lead with the primary ask - to invest in the recovery of Lake Street and other impacted business districts.
Dear [INSERT LEGISLATOR(S) HERE]:
As a [local small business owner/resident], I ask that you support HF 3028, which provides state investment in the Lake Street Council and the recovery of business districts impacted by civil unrest.
Lake Street, University Ave/Midway, West Broadway, and 38th Street and Chicago Avenue in Minneapolis suffered hundreds of millions of dollars in damages after the civil unrest in 2020. Businesses like mine have been working hard to rebuild and recover, but we face tremendous challenges.
Small businesses bring incredible economic and cultural value to our state – and our government has a role to play in their recovery.
The historic budget surplus presents a unique opportunity to support this full recovery and make a generational impact on the future of Lake Street and other important commercial corridors. Please support legislation that invests in small businesses, the Lake Street Council, and the Lake Street corridor.
Thank you for your time and consideration.
Sincerely,
[NAME]
[PLACE OF RESIDENCE / BUSINESS NAME]
