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Public Affairs Priority

11/28/2022

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Welcome back from what I hope was a rejuvenating Thanksgiving weekend. As the year winds down, I’m hearing from so many of you that you are tired. Really stretched. I truly hope you’ll find time to recharge, re-center on the “why” that keeps you energized, encouraged each day.
 
Fourth quarter for your chamber is all about gearing up for the year ahead, setting our priorities. As a team, we’ll also be taking some downtime at the end of December so we, too, are recharged and ready.
 
Today I want to update you on the Chamber’s policy priorities into 2023.
 
By now you should know that I strive to approach our work, use our voice, thoughtfully. As it relates to our policy work, we spent the entirety of 2022 taking a deep dive into topics we believe will be transformational and that we can impact: public safety, housing, and the benefits cliff.  Through that deep dive, our Public Policy Committee developed a set of recommendations we’ll be pursuing next year. On Nov. 15, we presented our 2023 Advocacy Priorities to the St. Paul Area Chamber Board of Directors for their review and approval.
 
Thank you for the opportunity to serve you.
 
See you in the trenches.
B​
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  • As part of our focus on public safety, I wanted to share the latest updates on COVID – the omicron variant, MN testing, and vaccines.
  • In case you missed it: last week we shared our 2022 Crime Perceptions Survey. Follow THIS LINK to read our report on the survey.
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  • Minnesota exports rose to an all-time high this fall. However, the state is slightly trailing the growth of U.S. exports Q1-Q3.
  • Coming soon: the big credit squeeze. Good info on buying, saving, and increased credit trends nationwide.
  • The Fed and the upside: Micro-businesses continue to surge despite headwinds of inflation, higher interest rates. ​
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​State
  • Paid family leave on a fast track at Minnesota Capitol.

Subscribe to our Chamber Advocacy Update to keep up with advocacy news.
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  • Visit Saint Paul’s Guide to the Holidays in Saint Paul!
  • Please join us at St. Paul’s holiday party –  Holiday Chamber Connect: Tuesday, December 6, 5-7pm. Register here!
  • ​Our Young Professionals network is having its end-of-the-year celebration at Can Can Wonderland: Wednesday, Dec. 14, 4-6pm. Register here!​
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  • Corporate volunteer mentors adding up through HandsOn Twin Cities. Looking for a path to lean in, to serve? Check this out.
  • I love Harvey Mackay. And his latest is great: Make creativity a core value for your business. ​
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  • Diversity is mission critical to winning Gen Z.  Why?​​
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  • Hafner’s site on White Bear Ave is up for redevelopment: St. Paul accepting offers to purchase, develop the vacant lot.   
  • Twin Cities area retail space is in demand: ‘We’re having our best year.’  Post-pandemic surge of in-person shopping is boosting the market for brick-and-mortar stores and restaurants. And “Small Business Saturday” highlighted both the successes and challenges. And here’s one very special highlight in downtown St Paul: skyway vacancy offers chance of a lifetime for clothing maker.
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Public Safety

11/21/2022

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On Sunday the Pioneer Press published my latest op ed, this one welcoming our new Chief of Police and sharing the results of our recent public safety survey.  Upon accepting his appointment, Chief Henry spoke about his vision for co-producing with the community a public safety strategy that can be a role model for other communities. My response is that “the business community is aligned in our desire, in the strongest terms, to improve outcomes in public safety and support this vision.” Because we have real work to do.

In the article I describe that I see St. Paul at an “inflection point”:  the majority of respondents (56%) express continued confidence in the city’s long-term plan to improve public safety AND we need some course corrections to demonstrate progress and maintain the public’s trust.  I think specifically about a victim-centered approach when it comes to holding people accountable for breaking the law – the need for real and immediate connection to consequences.

It's also worth noting the work of social services providers and the City/County in serving the unsheltered, connecting people to housing, shelter, and services, to close encampments.  This challenge continues, but their extraordinary effort is worth noting.

Follow THIS LINK to read our report on the survey.
 
See you in the trenches.
B​
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  • Axel Henry sworn in as St. Paul’s next chief of police.
  • B Kyle’s op ed on Sunday: Congratulations, Chief Henry. We have some work to do in St. Paul.
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  • Minneapolis Fed President Kashkari expects more interest rate hikes. Shared at last week’s MN Chamber 2022 Economic Summit. Economists, too,  see U.S. inflation running hotter through next year than they did a month ago and recession odds continue to mount against a backdrop of rising borrowing costs.
  • State of Minnesota Launches $34.5M Venture Capital Program: At a press conference on the University of Minnesota Twin Cities campus on Wednesday, state leaders heralded the launch of a $34.5 million program that will provide direct funding to entrepreneurs and to other venture capital funds. The money stems from a $97 million federal funding package that Minnesota secured last month. The funds came to Minnesota through the federal government’s American Rescue Plan Act, and they’re specifically earmarked for small business assistance. 
  • The Infrastructure Law, One Year In: A year after President Biden signed the $1.2 trillion bipartisan infrastructure law, local transportation leaders say the funding will bring improvements to roads, sidewalks and bridges, as well as greater equity. But they also say that changes are needed to help with the rollout of all the new funding, including speeding up permitting for transportation projects and making it simpler for local governments to apply for the grants.   Here is the US Chamber’s commentary.
  • MN added 17,400 jobs in October, the most in 2022.
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​State
  • MN House DFL and MN Senate DFL announce committee structure and chairs.
 
Regional
  • 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. More here.  
  • The City of St. Paul has released the second solicitation for the 30% AMI Deeply Affordable Housing Program. Applications are due Wednesday, November 30, 2022, by 4:30 p.m. The current solicitation aims to facilitate the creation of multifamily rental housing units affordable to households at or below the 30% Area Median Income (AMI) level ($35,190 for a family of four). This is the second solicitation for the City of Saint Paul’s 30% AMI Deeply Affordable Housing Fund. Through this program, the city will invest $37 million of American Rescue Plan Act (ARPA) funds to increase the supply of housing for extremely low-income residents earning less than 30% of the Area Median Income. 
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Subscribe to our Chamber Advocacy Update to keep up with advocacy news.
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  • Visit Saint Paul’s Guide to the Holidays in Saint Paul!
  • Please join us at St. Paul’s holiday party –  Holiday Chamber Connect: Tuesday, December 6, 5-7pm. Register here!
  • ​Our Young Professionals network is having its end-of-the-year celebration at Can Can Wonderland: Wednesday, Dec. 14, 4-6pm. Register here!
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  • What does Simon Sinek have to say about alternatives to quiet quitting? Everyone is struggling to find balance between personal lives and work. And it’s hard. Instead of disengaging, let’s have difficult conversations about this balance.
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  • Greater Twin Cities United Way responds to surge in call for housing and mental health help. Also notable:  their longstanding 211 helpline is responding to a surge in demand, fielding 480,000 calls in 2021 — a 40% increase from 2020. And, now, a new suicide and crisis lifeline relaunched this year nationally with the new 988 phone number.
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  • Multifamily market stands strong amid headwinds. The trend of record absorption continued into Q3 with more than 9900 units absorbed through the year, a 12% increase compared to last year.
  • Historic St. Paul warehouse to become eco-friendly arts space. D/O Architects and nonprofit film organization FilmNorth have entered a public-private partnership to restore the 24K SF Brown-Jaspers Store bldg. at 2441 University Ave W.
  • More than $2B in federal funding announced for Minnesota projects. The money will go toward more than 140 road, bridge, public transit, and other projects. ​​
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Career Connect Day – Meeting Needs of Employers

11/14/2022

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I spend a great deal of time throughout the year talking with you, our members, about your strategic priorities. It’s important for me to hear directly from you about what you need from us.  This year, you are telling us that your top priorities are: talent shortages within your organizations; dealing with inflationary impacts; workplace culture/employee engagement; and continuing to invest in your diversity/inclusion priorities. 
 
That first priority was the genesis for our inaugural Career Connect Day in late October. Our vision was to introduce high school sophomores to companies and potential career path opportunities. The day brought together almost 1900 students and 100 companies. Organized along the career pathways as laid out by the Minnesota Department of Education, Career Connect Day creates an introductory, exploratory, and fun day for students to be exposed to new career ideas, new brands, and the people actually doing the work already. I am so thrilled with how the day played out. What a great accomplishment for all of us.  Thanks to everyone on the Chamber team, within the school districts, and the participating/sponsoring employers for making the day such a great success.
 
Next year? With the encouragement from employers and the Ramsey County Workforce Innovation Board, we plan to make this a 2-day event: day 1 for students, and day 2 for adults looking for retraining, internships or second careers.  Please stay tuned and be sure to engage – we plan for this to become a perennial event, in service to the entire region.
 
On a side note: because I admire Bill Lindeke and how he thinks, I wanted to flag for you this fun interview here. As it turns out, he “believes St. Paul is the better twin!” 

See you in the trenches.
B
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Dakota County: There is a significant backlog of criminal cases in the Dakota County District Court. The backlog was caused by the inability to conduct jury trials and other hearing types for a significant period dating back to March 16, 2020. Dakota County authorized the use of American Rescue Plan State and Local Fiscal Recovery Funds to add 3.0 FTE To County Attorney’s Office Criminal Division in response to the impacts of COVID-19 pandemic and amend County Attorney's Office and non-departmental 2021 budgets.
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  • U.S. consumer inflation eased to 7.7% in October. Inflation report leaves Fed on track for 0.5-point rate rise in December. Some central bank officials have signaled a desire to moderate the pace of interest rate increases.
  • At the end of October, the US Department of Treasury announced that Minnesota had been approved for up to $97 million for small business financing support. The State Small Business Credit Initiative (SSBCI) is a part of the American Rescue Act (ARPA) of 2021 and will include six programs designed to support Minnesota businesses. To enroll in any program, the company must meet the SBA definitions of a small business. Generally, this means less than 500 employees and $7.5 million in annual revenue. In the coming weeks and months, businesses may request assistance or have questions regarding the new programs; the Grow Minnesota!® team is here to help.    The SSBCI programs are launching over the course of the next few months, beginning with the Minnesota Loan Guarantee Program. This program will guarantee loans up to $800,000 with a .25% guarantee fee when enrolled by approved lenders. Interested businesses will apply through approved lenders, and the lender application process is in progress. Last week, the Growth Loan launched, providing direct loans to eligible seed and early-stage businesses, prioritizing technological innovation. The company must be planning on raising equity to qualify, as the loan amount will be based on 20% of the total amount raised and will range from $100,000 to $400,000. Applications for the Growth Loan Fund will be processed by DEED. Overall, these two programs will begin to support business investment and expansion in the state and may be helpful when visiting businesses.The new SSBCI will also contain two other loan programs administered by DEED, the Small Business Loan Participation Program and Automation Loan Participation Program. Additionally, there will be two venture capital investment programs, Direct Investment Venture Capital and Multi-Fund Venture Capital, and the University of Minnesota will administer both. By being knowledgeable about these new programs we can help position local businesses for success. Keep an eye out for more information from the Grow Minnesota!® team as these new programs are rolled out. 
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Federal
  • The New York Times wrote a great analysis of the election. Worth a read.
  • Midterms in overtime: Democrats retained power in the Senate and have one contested race left: a runoff next month in Georgia. Those who were ready to put the midterms behind them can't let their guard down yet. Though Democrats will retain their Senate majority given victories by incumbents Mark Kelly of Arizona and Catherine Cortez Masto of Nevada, whether they'll pad their seat margin over Republicans will remain unclear until December, when Sen. Raphael Warnock and Republican Herschel Walker face off in a Dec. 6 runoff in Georgia. Meanwhile, control of the House is still up for grabs pending the outcome of more than a dozen races. What we're watching: Even if Republicans win enough of the remaining House races to wrest control of the chamber from Democrats, as they are narrowly expected to do, the breadth of their majority looks to be historically thin, potentially in one- to three-seat territory.
 
State
  • Democrats are in charge in Minnesota. Here’s what to expect: legalized pot, abortion protections, gun control on the table.  
  • MN House DFL and GOP select new leadership, including first Black lawmaker in role. Melissa Hortman will remain Speaker, Rep. Jamie Long of Minneapolis will be Majority Leader, and Rep. Lisa Demuth of Cold Spring was named new Minority Leader.
  • MN Senate Democrats and Republicans select new leadership.  Sen. Kari Dziedzic of Minneapolis will be Majority Leader and Sen. Mark Johnson of East Grand Forks will be Minority. 
  • How every Minnesota city and township voted for governor in 2022.
 
Subscribe to our Chamber Advocacy Update to keep up with advocacy news.
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  • Meet the 2022 Minneapolis/St. Paul Business Journal’s CFO of the Year Honorees! Special shout-outs to: Dennis Power, Opus Holding; Kevin Valois, Sunrise Banks; Patrick Nolan, Gillette Children's ; John Reutter, Uponor North America; and Career Achievement, Warren Zaccaro, Securian Financial Group.
  • November's episode of B’s Table Talk featuring Michael Goar has been published on PodBean.
  • Please join us at St. Paul’s holiday party – Holiday Chamber Connect: Tuesday, Dec 6, 5-7pm. Register here!
  • And don’t miss the GLOW Holiday Festival, at CHS Field this year, Nov 23 – Jan 1, 2023.
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  • Nine Minnesota-based companies have been ranked among Forbes’  third annual “America’s Best Employers for Veterans” list: Medtronic (#28); General Mills ($43); 3M (#71); Mayo Clinic (#104); UnitedHealth Group (#145); Best Buy (#156); Digi-Key Electronics (#161); Allina Health (#174); Target (#176). Other SPAC members, non-MN headquartered:  Southwest Airlines (#12); Delta (#25); Bank of America (#64); Comcast (#125); Hy-Vee (#149).​
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  • The Workforce Innovation Board of Ramsey County is excited to announce the launch of a second Inclusive Workplaces Cohort (IWC). This initiative, facilitated by The Center for Economic Inclusion (CEI), will support employers in becoming more inclusive workplaces to ensure the diversity of our community as a tool for economic growth is being amplified. Up to 15 businesses in Ramsey County will have the opportunity to participate in this peer learning community while advancing equity, diversity and inclusion in their organizations. Selected businesses will meet monthly for 90 minutes over the course of 9 months beginning in March. Preference will be given to businesses with 10-250 employees (including all locations). Applications are due by Friday, December 30.  The County is hosting an information session for businesses interested in learning more about the IWC on Tuesday, December 6 at 9am.  Full details about the IWC, the information session and the application to apply are on the IWC webpage. ​
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  • Minnesota home sales down 31% in October.  Closed sales hit a 12-year low while prices continued to climb.
  • For 125th anniversary, Gillette Children’s Hospital debuts new headquarters in St. Paul.
  • Maplewood Mall’s new owners bring in new energy: about 30 new stores, and the Mayor describes it as feeling like a “business incubator.”
  • Ramsey County has a plan for its overhaul of Rice St. The county plans to rebuild the street between Wheelock Parkway and Pennsylvania Avenue.​
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It’s Election Day

11/7/2022

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I’m writing this on Monday, just before Election Day. Historically, mid term elections have seen lower voting numbers. Not so this year. Funding for several Twin Cities metro projects on the ballot, several races (including, surprisingly, the Governor) are too close to call, and control of the Legislature is in the balance. Nationally, U.S. News is reporting that early voter participation points towards a record-breaking turnout, even higher than seen in 2018. We should anticipate as much in Minnesota as well.  And, so far, young people have participated in early voting at a much higher level than historical averages. St. Paul and other big districts are keeping students home. And election officials are preparing for scrutiny on voting, election results.
 
Beyond partisanship, I anticipate that the economy and inflation will impact voting. In recent weeks, most voters are giving the U.S. economy a dismal grade. That is, 56% of voters say the current state of the economy deserves a D or F, with inflation and the cost of necessities like groceries and gas driving their assessment.
 
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My encouragement? To my mind, we all have power – and responsibility. Use it and vote!
 
See you in the trenches.
B
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  • Bust of nationwide catalytic converter theft ring included MN search warrants. According to a spokesperson for the US attorney’s office, no federal charges in Minnesota at this time.
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  • Fed unleashes another big rate hike but hints at a pullback. It was the central bank’s 6th rate hike this year. The fed also is suggesting that it soon could shift to a more deliberate pace of future rate increases.
  • U.S. employers add 261K new jobs in October; jobless rate rises to 3.7%. A sign that, as Election Day nears, the economy remains a picture of both solid job growth and painful inflation. Here is a piece by the U.S. Chamber on Understanding America’s Labor Shortage – and the most impacted states.
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State
  • Tim Walz and Scott Jenson’s plans for inflation and the economy (and what can MN’s governor really do?). The governor has limited power, especially in a state with our recent history of split-party control of the Legislature. 
  • Control of the MN Legislature will be decided on the Range, in the suburbs, and mid-size cities.
 
 
Regional
  • Amendment to City of St. Paul’s Rent Stabilization Ordinance. This ordinance was amended in Sep 2022; this statement outlines key amendments to the ordinance, including partial vacancy decontrol and clarifications of rental increases.
  • St. Paul City Council backs deeply affordable housing projects. New $24M TIF district to support of Farwell Yards, two new apartment buildings by the intersection of Plato Boulevard and Water Street.
  • The difference between St. Paul and Minneapolis in their approach to homeless encampments.
  • CD 2 race between Angie Craig and Tyler Kistner is a very expensive toss-up.
 
 Election day is THIS week. Be sure to reference our East Metro Voter Guide to learn more about your candidates!
 
Subscribe to our Chamber Advocacy Update to keep up with advocacy news.
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  • Build a network to last the rest of your career. Join the LSP Class of 2023. Registration is open!
  • November Lunch With Leaders, Economic Development Panel: Wed, Nov 9, 11:30am. Register here!
  • Our Equity Summit V, Inspiring Human-Centered Leadership, is here: Nov 15, 8am – 2pm.  Register here!
  • Please join us at St. Paul’s holiday party – Holiday Chamber Connect: Tuesday, Dec 6, 5-7pm. Register here!​
  • And don’t miss the GLOW Holiday Festival, at CHS Field this year, Nov 23 – Jan 1, 2023.
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  • My input this week comes from an article I recently re-read about how leaders can reduce stress for employees instead of adding to it. Stress is a part of life in every workplace, and leaders sometimes contribute to the problem. Our team is small, and everyone’s approach to stress impacts the entire culture. It’s a priority area for me, and I wanted to share with you as well.
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  • Bank of America grants $200K to LEDC and RePowered. This is part of Bank of America Twin Cities’ Neighborhood Builders Program. I’m especially delighted about this program because it is unrestricted funding (very rare opportunity for nonprofits).
  • Employers are asking employees to return to office 3 days/week.  Including US Bank.
  • Seramount’s (formerly known as Working Mother magazine) 2022 100 Best Companies lists several Minnesota companies as ranked among best companies for working parents: U.S. Bank, General Mills, Abbot Laboratories, Boston Scientific, Allianz Life, Kohl’s, and Accenture. Minnesota also has ranked as one of the best states for working women, earlier this year, in a listing by WalletHub.
  • Federal Reserve Bank of Minneapolis: Fresh updates to a housing affordability data dashboard maintained by the Federal Reserve Bank of Minneapolis, in partnership with the Itasca Project, convey a mixed message on our collective progress. Data updates to the Regional Housing Affordability Dashboard reflect the Minneapolis-St. Paul regional housing market over time and compared to peers. ​
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  • Saint Paul: The City of Saint Paul is currently soliciting proposals through its 30% AMI Deeply Affordable Housing Program. Applications will be accepted from October 27, 2022 through November 30, 2022. The goal of this RFP is to offer the City’s American Rescue Plan Act (ARPA) funding to developers to facilitate the creation of multifamily rental housing that includes units affordable to households at or below the 30% Area Median Income level ($35,190 for a family of four).  
  • Great River Passage Conservancy unveils design for the River Balcony.
  • Upcoming residential projects: apartments proposed near Roseville’s HarMar Mall and St. Paul’s planning commission OKs Trolley Line Condos project in Linden Hills. ​​
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Introducing St. Paul's New Police Chief Axel Henry!

11/1/2022

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This morning I joined Mayor Carter and other community leaders for an important announcement about our new St. Paul police Chief, Axel Henry. 

Public safety is a top priority for St. Paul and fundamental to building vitality in our community. Renewing our focus on improving public safety, while building trust and respect in the community seems more important than ever. 
With his experience and perspective, Chief Henry is well-positioned to continue building on the culture that he's now charged with leading and we are here to support him.

St. Paul faces very real challenges in terms of public safety, and Henry - a seasoned veteran within the St. Paul Police Department and a Saint Paul Native - understands the nuances of our community and the challenges we are facing. I was honored to be a part of this selection process. The candidate pool was very strong, particularly from within the SPPD itself. I look forward to working with Chief Henry as he steps into this important role.

​B Kyle
President & CEO

St. Paul Area Chamber​

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  • St. Paul Mayor Melvin Carter announced today he’s selected St. Paul Police Cmdr. Axel Henry to be the department’s next police chief. The selection now awaits City Council Approval.
  • Nowhere to go for most troubled youth. As youth detention centers close, Minnesota runs out of places to rehabilitate kids who commit serious crimes.​
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  • The Federal Open Market Committee will hold its two-day policy meeting beginning Tuesday, with its decision coming at 2 p.m. on Wednesday. Economists and Fed watchers largely expect another 75-basis-point rate hike, setting the stage for the Fed's benchmark interest rate to reach 5% in the first quarter of 2023. Hopes for a pivot to dovishness were mostly dashed last week after recent GDP data and Friday's household spending and employee wage figures that showed that the economy still has some sizzle. 
  • Launch MN, a program within DEED, has selected 43 startups out of a pool of 70 to receive grants of up to $35K.
  • From the US Chamber: How Small Business Owners Can Navigate Inflation and High Interest Rates.
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State
  • Control of the Minnesota Legislature will be decided in the ‘burbs, on the Range, in midsize cities. Only about 10% of state legislative races are decided by 5 percentage points or fewer.
  • Review of the final debate between Governor Walz and challenger Scott Jenson here here and here. Listen to the debate on MPR here.
  • Minnesota’s Election Day is Nov 8. Here’s what you need to know.
 
 Regional
  • Interested in learning more about the two candidates vying for Ramsey County’s open District 6 seat? Good article here by the Pioneer Press.
 
Election day is next week. Be sure to reference our East Metro Voter Guide to learn more about your candidates!
 
Subscribe to our Chamber Advocacy Update to keep up with advocacy news.
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  • Build a network to last the rest of your career. Join the LSP Class of 2023. Registration is open!
  • November Lunch With Leaders, Economic Development Panel: Wed, Nov 9, 11:30am. Register here!
  • Our Equity Summit V, Inspiring Human-Centered Leadership, is here: Nov 15, 8am – 2pm.  Register here!
  • Please join us at St. Paul’s holiday party – Holiday Chamber Connect: Tuesday, Dec 6, 5-7pm. Register here!
  • And don’t miss the GLOW Holiday Festival, at CHS Field this year, Nov 23 – Jan 1, 2023.
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  • 5 tips to creating a benefits package that employees truly want.
  • MSPBJ’s 2022 Fast 50: The fastest-growing private companies in MSP, ranked.  Special shout-out to repeat winners: WSB, #46; and Stonebridge Capital Advisors, #48.
  • The disconnect over remote work lingers. It may intensify in 2023. ​
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  • Early indicators show HBCU growth while most colleges lose students.
  • 5 life sciences trends to watch for in 2023. This sectors has been on a tear in the past couple of years, with no anticipated slow-down.​
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  • New renewable natural gas facility opens in Inver Grove Heights. This is a fascinating landfill gas recovery project.
  • St. Paul City Council funds demolition of vacant public safety annex, boosting prospects for Pedro Park. Using $500K in federal Community Development Block Grant funding.  
  • New plans emerge for Sears site in St. Paul: A first-time developer is shopping around his idea to turn the Sears property into a hub for reality TV entertainment.
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