New commercial corridors program aims to boost businesses

Resources that could give neighborhood commercial areas a needed boost are arriving through St. Paul’s new commercial corridors program. St. Paul City Council members approved the program and 18 projects April 23.
Sixteen district councils, community development organizations and business associations are eligible, including Neighborhood Development Corporation (NDC), Hamline Midway Coalition and Union Park District Council. Some entities due to geography have more than one project area.
NDC’s focus area is the east end of University Avenue. HMC is focused on University and Snelling avenues, with UPDC’s focus on Selby and Snelling avenues. North End Community Organization (NECO) has the Como-Dale-Front area.
The goal of the program is to provide dollars to organizations in a streamlined way to advance economic development projects and programs on what are considered to be key corridors. In 2024, the city council earmarked $1.4 million in Economic Development STAR funds for the development of a commercial corridor assistance program. Dividing that equally provides less than $80,000 per area.
The council, meeting as the Housing and Redevelopment Authority (HRA) Board in March, reviewed program guidelines and made final suggestions.
“I am really excited about this,” said Ward Seven Council Member Cheniqua Johnson, who chairs the HRA Board. She said the program is one the council has led and placed a priority on. Several council members spoke to the program’s potential to strengthen the city’s property tax base.
Other council members also praised the new program, although several questions were asked. One issue council members and city staff discussed is construction management. Some district councils and neighborhood business associations over the years have run programs such as facade improvement work, and have run into complicated issues.
Planning and Economic Development (PED) Director Nicolle Goodman cautioned that the first year of the program could be bumpy. She emphasized that the council, city staff and community groups would learn together and could shape the program in the future.
The notion of designated commercial areas of corridors for improving is nothing new as different iterations have been discussed over the years. Most recently, former PED Director Bruce Corrie championed the notion of cultural corridors.
The new program has funding as well as a firm timeline. Proposals are to take shape this spring and extend until early summer. After applications come in, city staff will review those for a couple of weeks. Then another month is needed to get contracts in place. Projects could begin as soon as June.
The program includes potential sites defined by streets and intersections, each touching at least one of the city’s 17 district council areas.
Area streets and key intersections were among initial proposed commercial corridor sites. One is University between Transfer Road and Lexington Parkway. University between Lexington and the Rice St. area is another eligible section.
Much of Snelling was divided into four different commercial corridors, with the local one being from University-Snelling to the Snelling-Minnehaha avenues area. Three other sections of Snelling to the south connection with Selby and Grand avenues and Ford Parkway are also designated as commercial corridors.
Daniela Lorenz is program manager for the city’s Department of Planning and Economic Development (PED). She explained that the goal of the program is to provide dollars to organizations in a simple way, to advance economic development projects and programs on key corridors throughout the city.
Program planning included discussions with district councils, business associations and other groups in Saint Paul that do work along the commercial corridors. The guidelines were also informed by comments sought during an HRA meeting late last year.
The public comment period brought forth many needs. Lorenz indicated that some comments did inform the commercial corridors program.
Ideas brought forward included:
• Funding for beautification efforts
• Funding for administrative costs such as program and project management
• Funding for planning before programs could be implemented
• Flexible resources to support businesses
The program is a direct contracting effort similar to that used with the city’s district councils. Identified organizations with a history working in the 17 identified corridors were allocated funding to complete eligible activities. Where there would be competition is if more than one organization or group of organizations comes forward for the same area.
Any money allocated has to be spent within one year. Also, any projects or programs funded through this allocation won’t be eligible to receive additional city or HRA dollars for a program or project with the same scope.
Proposed eligible expenses:
• Corridor-wide beautification efforts (maximum amount per project is $25,000)
• Corridor marketing campaigns
• Public art installations (maximum amount per project is $25,000)
• Development of plans for implementation of corridor-wide efforts.
Plans would have to be finalized within one year of receiving funs, said Lorenz, and must have the ability to be implemented within three years. Money for implementation of plans created through this fund is not guaranteed to be provided from the city or HRA
Up to 10 percent of funds may be spent on administrative or indirect cost associated with managing or executing the proposed projects or programs.