St. Paul’s Latino Business Hub Opens After Surviving Its Own Near-Collapse

Plaza Del Sol, a new commercial hub for Latino entrepreneurs on St. Paul’s East Side, has opened after years of construction delays and a final stretch of disruption tied to federal immigration enforcement nearby. The Latino Economic Development Center’s renovated center on Payne Avenue in Payne-Phalen brings food businesses, event space and small-business support under one roof.

The nonprofit Latino Economic Development Center, or LEDC, bought the failing commercial center in 2020, saving it from foreclosure, according to twincities.com. Renovations on the former furniture-store building began three years before the Star Tribune’s opening story. The project encountered setbacks from COVID-19, the George Floyd unrest, inflation, construction surprises and federal immigration enforcement, according to that reporting. The Star Tribune, in coverage by Dee DePass, put the cost at $11 million; bizjournals.com also described it as an $11 million project, while a 2024 minnpost.com report estimated the cost at about $10 million.

The finished center includes five restaurants, a bar, an event center, a commissary kitchen, a small-business development center and LEDC headquarters offices. Its event space seats 250, according to the Star Tribune. The funding package included $5 million in loans from Minnesota’s economic development arm, a $1 million congressional grant and $2 million in loans from Alerus, according to startribune.com. Congress, the Minnesota Legislature, the city of St. Paul, Alerus Bank, U.S. Bank, LISC and Propel also contributed, the Star Tribune reported.

Enforcement disrupted plans before opening

Federal immigration enforcement affected the project’s final stretch. In January, Kristi Noem led a raid by dozens of ICE agents at the building across the street from Plaza Del Sol. In the following weeks, agents patrolled the plaza’s entrances, nearby streets and businesses, according to the Star Tribune. LEDC’s Alma Flores said food businesses that had signed leases canceled their contracts, while the center also lost bookings for weddings and birthday events after word of the enforcement activity spread, the paper reported…

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