Twin Cities: St. Paul mayor announces $4.65 million for business co-ops, artists, home repairs and restaurant sewer fees

Frederick Melo, Twin Cities

In St. Paul, business cooperatives, artists and low-income families looking to weatherize their homes will soon be able to apply to the city for financial assistance, as can restaurants looking to add outdoor dining.

St. Paul Mayor Melvin Carter’s office announced this week that the city will oversee the distribution of $4.65 million in federal American Rescue Plan funding for community-owned businesses, home improvements for low-income families and cultural and arts initiatives, as well as help paying so-called restaurant “SAC” fees, or sewer charges.

The programs will be overseen by the Office of Financial Empowerment, the Department of Safety and Inspections and the Department of Planning and Economic Development. Each department will announce an application process in coming weeks.

The initiatives include $2.5 million for a “Locally Owned Cooperative Assistance Loan,” otherwise known as the LOCAL Fund, which will support shared-ownership models to increase community ownership of businesses and properties. The initiative includes technical assistance on how to develop a business co-op, as well as a limited number of grants to support businesses transitioning into employee ownership or employee-driven start-ups and commercial real estate.

A “Healthy Homes St. Paul” fund will receive $1 million for home repairs and weatherization in one-to-four unit residential properties in low-income parts of the city. The initiative, which will build on existing low-income weatherization programs, will be geared to both homeowners and renters and is expected to work in tandem with them by promoting pre-weatherization home repairs.

A “Creative Economy Project” will receive $1 million to fund placemaking projects and installations in multiple neighborhoods, with the goal of promoting each area’s distinct cultural identity. The initiative, overseen by the Department of Planning and Economic Development, will include paid projects and training for artists and highlight “historically underinvested commercial corridors,” according to a written statement from the mayor’s office.

The Department of Safety and Inspections will receive $150,000 to assist restaurants setting up outdoor dining. The federal dollars will cover a portion of their sewer availability charges, or SAC fees, which are one-time sewer fees mandated by the Metropolitan Council when businesses expand. The fees are intended to offset the cost of increasing wastewater capacity.

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