Minnesota City's Downtown Revival Efforts Stall, Frustrating Business Owners

Downtown business owners in St. Cloud, Minnesota, are expressing despair as a significant revitalization plan, initiated by former Mayor Dave Kleis in 2022, has failed to materialize nearly four years later. The $100 million state bonding request, intended to inject life into the struggling city center, has yielded only $6.4 million in state funding.

The ambitious proposal included a skyway system, hundreds of housing units, and a riverfront plaza, all developed with expert input. Business owners, already grappling with the economic fallout of the COVID-19 pandemic, initially welcomed the initiative with optimism. However, the vast majority of Kleis's plan has yet to be implemented.

"It's a ghost town," said Bubba Hollenhorst, owner of Gnarly Bard Theater, who opened his business on St. Germain Street two years ago. "Hopefully - slowly over the next decade - downtown will get cooler. But right now, I'm not super optimistic."

Struggles in downtown St. Cloud predated the pandemic, according to current Mayor Jake Anderson. He noted that the closure of a large retailer about eight years ago left a significant footprint vacant. The shift to remote work for hundreds of Capital One employees, who have not returned to the office, and the relocation of some Stearns County staff further impacted the downtown area.

Anderson acknowledged that when he took office, legislators advised against seeking another $100 million. He is, however, optimistic about the allocated $6.4 million, which will fund two projects: one connecting downtown to St. Cloud State University and another linking the area to the Mississippi River. "We intend these projects to be spurs for new development," Anderson stated, adding that he remains "bullish on its future" despite frustrations with the pace of progress.

John Torgerson, head of the Downtown Alliance board, echoed the sentiment of impatience, admitting that from an outside perspective, progress appears slow. Ashley Green, owner of Green Thumb Etc., is considering relocating her business due to the lack of development.

Despite the widespread frustration, there have been some positive developments. The city has seen the recent opening of a children's museum and a nonprofit music school. A company has also purchased a vacant department store, with plans for the space yet to be revealed. Additionally, city officials are developing a plan to construct 400 multifamily housing units on the site of the current downtown jail and court buildings.

"As a city, we will continue to look for new ways to activate spaces, encourage development or redevelopment, and focus on catalyst areas that can encourage other investment while being extremely cognizant of taxpayer money," Anderson said. IMAGE2