Can the Public Sector Offset Road-Construction Losses?
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Business + Economy Article
Can the Public Sector Offset Road-Construction Losses?
By Amanda Week
October 25, 2026
When Hennepin Avenue in Minneapolis closed for 18 months of reconstruction in 2024 and 2025, small businesses looked to government for relief from massive losses. Nothing was forthcoming, and some businesses did not survive. It’s now a cautionary tale as Minneapolis prepares for a two- to three-year redesign of parallel Lyndale Avenue, slated to begin in 2028.
In 2024, Minneapolis councilmembers Aisha Chughtai (Ward 10) and Aurin Chowdhury (Ward 12) proposed a 2025–26 budget amendment for $900,000 to establish forgivable loans for affected businesses. City Hall stated that funds were never disbursed due to a lack of clear guidelines in the amendment. The challenge for businesses suffering economic consequences from road work is real, according to State Rep. Katie Jones, who represents the area.
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"This portion of south Minneapolis needs greater time ... to recover and businesses to start to [recuperate] before the Lyndale construction."
—Carrie McCabe-Johnston, proprietress, Litt Pinball Bar, Mortimer’s Bar, Nightingale
Litt Pinball Bar, located at Hennepin and Franklin in 2023, saw a decline in sales of 15–19% from April to October 2023, well below industry profit margins. While the building’s parking lot helped maintain some business, heavy equipment in front of the bar affected visibility.
McCabe-Johnston’s businesses on Lyndale—Mortimer’s Bar and Nightingale—will be impacted by the upcoming project. She expresses concern: "I’m very nervous about it because Nightingale doesn’t have street parking. ... This portion of south Minneapolis needs greater time ... to recover and businesses to start to [recuperate] before the Lyndale construction."
Southwest Minneapolis Ward 7 Councilmember Elizabeth Shaffer questions the city’s ability to aid businesses facing losses of five to seven figures: "If the city were to try to do that for every infrastructure project underway, that would be very difficult, given the city’s fiscal challenges." At her initiative, the council extended construction hours to shorten the project’s duration.
Jones advocates for a state grant program to support affected businesses, "We’re identifying ways to mitigate the impact on businesses, but it’s a very complex situation."