Commercial corridors and business nodes throughout the city contribute greatly to the vitality and livability of Minneapolis. They are home to a wide array of businesses providing needed services, restaurants – many established by immigrant entrepreneurs – contributing to the uniqueness and attractiveness of neighborhoods, and compelling entertainment venues and cultural institutions. These areas provide jobs and economic opportunity, and contribute to the property tax base which supports city, county, park board and school budgets. They are well served by transit and enhance walkability of neighborhoods for many city residents.
One of the key responsibilities of our elected officials in Minneapolis is to understand the challenges these areas face and take actions which nurture future success. Every candidate running for office in City Hall should be expected to address this topic.
Commercial corridors and business nodes have been affected in recent years in several ways:
- The reality and perception of public safety: Personal and property crimes rose in the years following COVID-19 and the murder of George Floyd. While statistically safety has improved recently, the impact on business success in commercial areas is an on-going concern.
- The impact of civil unrest: The physical damage along areas experiencing the brunt of unrest has not been fully rectified, resulting in vacant land and some remaining boarded buildings. These persisting conditions can deter future investment. At times, the City’s own policies have made rectifying these problems more difficult.
- Economic conditions: The general economy in a period of high inflation and high interest rates, while above City Hall’s “pay grade” in terms of direct policy responses, has taken a toll on business viability.
- Unique costs and requirements of doing business in Minneapolis: Currently there are 15,000 fewer jobs in Minneapolis than in 2019. One area Minneapolis policy makes do control is the degree of regulation and additional costs imposed on businesses in the City compared to adjacent communities and other parts of the metro region. At present it is substantially more expensive to do business in Minneapolis than outside Minneapolis. This has resulted in businesses leaving the City.
- The impact of City projects and policies: A common concern from business owners and neighbors trying to access local commercial establishments is street reconstruction projects, road narrowing, and parking restrictions – often related to biking and transit infrastructure – do not adequately account for both the immediate impact during project construction and the long-term effects reducing access to businesses.
These challenges are generally known at City Hall, and some efforts are made to address them. But in addition to current work and the variety of support activities provided by the City, areas for future policy makers to consider in support of commercial area and small business success could include the following.
- Increased access to capital: Consider increased direct support – loans and grants – for business development and using public funds to leverage private lending pools.
- Support for real estate control and project ownership: This is the starting point for successful commercial development and revitalization efforts. For many potential business and development ideas, easier said than done, which is why direct city involvement and encouragement of private sector support is a priority.
- Partner with recognized intermediaries: To better achieve the above goal, well established community development intermediary organizations with a mission to help and a balance sheet to attract investment should increasingly be sought out as partners.
- Build capacity: Fostering needed partnerships between business and commercial owners, existing and prospective, and entities controlling resources needed for their success often requires public investment to improve business practices and sophistication.
- Simplify doing business in Minneapolis: Focus on ways to make permitting, inspections, licensing, accessing city resources and other interactions simpler and more on par with the experience outside the city.
- Greater recognition and accommodation of impacts from infrastructure projects: While many stakeholders have a legitimate claim to input on infrastructure priorities and plans, businesses and their customers are at the front line of immediate and permanent impacts. Concerted outreach and communication when planning, adjusting plans based on input, and proactive problem-solving during project implementation should be prioritized.
As campaigns progress over the summer and fall, lets make sure this important topic is part of the dialogue with candidates seeking to help lead Minneapolis for the next four years.
I would add that we need a growth strategy. Where we’ve added significant population, we have seen new commercial areas grow. The shops and restaurants didn’t just show up in the North Loop, NE, or Mill District. It followed where people live. I would suspect that the additional population in Uptown has prevented more deterioration from occurring. What’s left mostly caters to people who live nearby. The reality is you need more people today to support brick and mortar businesses than ever before, and this won’t change. We can do more to reduce crime and the perception of it. But fundamentally, we have the amount of retail and businesses that our population can support. The city seems to understand this, which is why they’ve softened retail requirements in certain areas. That’s why we will get a redevelopment at Hennepin and 31st that is only housing, with no retail. We’ll need to really dig into the next comp plan based on lessons we’ve learned from the 2040 plan. That includes making it feasible to add more small-scale housing. While you technically can build a triplex anywhere, our height and setback restrictions don’t support new development. We can’t just rely on big buildings on commercial corridors.
Steve Cramer has outlined a thoughtful and comprehensive approach to a problem that is plaguing many neighborhoods in Minneapolis. His analysis is correct. No one wants to live in a neighborhood next to unsafe and decaying commercial corridors or business nodes. I’ve addressed these issues in previous columns. But I have several decades of experience in various cities, including Minneapolis, and I can suggest to readers what practical steps can be taken to implement Steve’s recommendations. First, Steve recommends partnerships with intermediary organizations. The City should support the creation of community development corporations, district management organizations, responsible for management, maintenance and marketing of these corridors and nodes. There needs to be an entity in charge, with adequate funding, experienced staff, and a close relationship with property and business owners. Second, this entity should be especially savvy in terms of business recruiting and tenant mix. And third, the organization should oversee an aggressive “clean and safe” program. For example, note the BIDs in Milwaukee. Fourth, the intermediary should partner with the City to make parking available and affordable. We all wish that everyone would walk or ride a bike; but that is not reality. I’ve advised dozens of cities regarding parking programs, and I know customers are going to be traveling most of the time, by either private auto or shared auto. Especially older customers, those with physical limitations, or those with children, will need to be able to park. Minneapolis should explore the way Ann Arbor, Nashville, Tempe, and Boulder manage parking. While Minneapolis struggles to bring life back to downtown, it should heed Steve’s advice and appoint a person who is a direct report to the mayor, with authority to implement programs designed to support West Broadway, Dinkytown, Uptown, and commercial corridors.
This is spot on. Steve, please forward this to the Star Tribune and try to get it printed, even if it is a long shot. A perfect example is the Burch Steak restaurant at 22nd and Hennepin. The city should be offering generous tax breaks to fill that vacant building. It’s been empty since 2020 for cryin’ out loud!!!