Downtown St. Paul program pairs small businesses with empty storefronts (and zero rent)

There was a vetting process: The Downtown Alliance contracts with Kruger Real Estate Advisors, led by former St. Paul Port Authority President Lee Kruger, who looks at applicants’ business plans and projected revenues to help evaluate if they might be able to afford the space in time. The storefront also needed a few improvements, which the property owner and Johnson both helped cover.

Now in addition to equipment for sports, Jack and the Pack offers treats, toys, leashes and training sessions. Johnson said families often stop by after a visit to the Children’s Museum across the street to shop and pet her dogs, who accompany her to most shifts.

“We’re really happy we’re here,” Johnson said. “You need to have your ducks in a row, but [the Grow Downtown program] was super worth it for me. And I hope other people are taking advantage of this, too.”

Similar pandemic recovery programs have come and gone across the country. So far, the St. Paul program has succeeded because it doesn’t rely heavily on public or philanthropic support, Krueger said. After six months, it’s up to the business and property owner to decide if and how to move forward.

Short-term leases aren’t common because they often aren’t worth the work they require for property owners and commercial real estate brokers. That’s why Krueger, who previously worked in retail leasing, handles the initial agreement. If a longer-term tenant emerges before six months is up, property owners are also allowed to ask businesses to leave with 30 days notice.

“Now the retailers have got a sales history and they’ve got an ability to look at what they can afford, how they’re trending,” Krueger said. “If they’re seeing their business grow, then they can kind of make their next deal more based on a little bit of a track record.”