ST. PAUL, MN — A group of Black-owned businesses in downtown St. Paul are scrambling to find new locations after the sudden shutdown of the Alliance Bank Center due to unpaid utility bills. The building’s owner, Madison Equities, failed to meet its financial obligations, forcing tenants to vacate. Black owned businesses like Crypto Cuts, Rico's on Wabasha, Mr. B's Barbershop among others are all facing displacement.
Rico, who has run Rico’s on Wabasha in the building for five years, the closure is more than an inconvenience—it’s an existential crisis. "They sent me an email a couple days ago at 4:00 PM," Rico explained. "It basically said they were going through hardships, hadn’t been paying utilities, and that we should prepare to vacate. They didn’t even give us a real timeline—just that it would happen soon."
A Business Left in Limbo
Rico, who has been operating on a month-to-month lease for the past four years, now finds himself searching for a new home for his business.
"I really don’t know where I’m about to go right now," he admitted. "I’ve been reaching out to people in other buildings, trying to see if they have anything available. The mayor hooked me up with his development coordinator, and they’re trying to help me find a spot. But the thing is—we only got two weeks to be in here. Even if they find me a place, it’ll take months before I can move in. In the meantime, I’ll probably have to get a job just to maintain income."
For Rico, owning a business downtown was more than just a career—it was a dream.
"I grew up on the West Side in the Torre Projects, right across the river. This meant something to me, to have my own business downtown," he said. "Now, we’re seeing not just this building shut down, but the Lowry across the street too. This is a recurring issue."
Neglect and Displacement
City officials have condemned Madison Equities for its handling of the situation, arguing that this pattern of neglect harms not only small businesses but the entire downtown economy. The real estate company owns a portfolio of nearly a dozen. properties downtown. "The neglect of responsibility by Madison Equities continues to stampede through our St. Paul downtown community," said State Representative María Isa-Pérez Vega. "I'm thankful Mayor Carter has secured assistance partnering with Xcel Energy to maintain power and provide opportunities for historic businesses like Pinots Pizza to relocate to other downtown buildings such as Town Square at the state level."
But for Rico and others, the issue isn’t just about finding new space—it’s about the city’s priorities. "I for sure feel like city and state officials have a greater responsibility for the decline downtown," he said. "They’re focused on developing new things, but what about the businesses that are already here?"
He pointed to the stark contrast between government spending priorities and the reality facing small business owners. "They’re putting $130 million into developments across the street, but we have buildings shutting down today," Rico said. "That’s backwards to me."
The closure of Alliance Bank Center comes just weeks after Lunds & Byerlys the only grocery store in the area announced its departure and the eviction of residents from The Lowery just a block away.
A Barbershop Owner With Foresight
Unlike Rico, Bilal Saleem, a longtime barbershop owner in the building, saw the signs early and made preparations to move.
"I've been at this location going on nine years now," the owner of Mr. B's Barbershop said. "It was all of a sudden, but I had made prior preparations to relocate because I've been noticing different signs that's been going on with Madison Equities. So I says, well, I better start making preparations to relocate."
His new location will be in Town Square, right next to Capital Dental and a sports jersey shop.
"There's a better opportunity there for me to have more business, and I guess that's the essence of it all—profitability. So I'm really looking forward to that," he said. "April 1st is the target date."
Even though he had prepared, the situation remains unsettling.
"I was thinking, what if I possibly could have been one of the people that are not sure about where they're going to go now, where they're going to relocate or how they're going to conduct business," he said.
He also raised concerns about the pattern of neglect downtown, citing the closure of the Lowry and other businesses.
"A lot of these properties are owned by Madison Equities. I think a dozen properties that Madison owns," Mr. B explained. "After Jim Crockarell, the guy who owned them, passed about a year and a half ago, his wife assumed all the responsibilities. But it is my understanding that she didn’t want anything to do with it. She tried to sell all the properties, and when it didn't work, she just relinquished being responsible, and here we are." Despite the chaos, Mr. B considers himself fortunate.
"I think it was a disservice to people who were here on how they handled this by not paying their electrical bills," he said. "But I'm pretty fortunate that I have somewhere—a safety net."
A Community Rallies to Help
Despite the uncertainty, Rico is pushing forward. He’s organizing a benefit concert on March 28 from 2:00 PM to 5:00 PM in front of his restaurant at 378 Wabasha Street North to raise funds and awareness.
"We’ll have artists performing, and people can donate if they want. We’ll have Cash App tags up and everything," he said. "Whatever happens next, I’ll be posting updates on my social media—so definitely follow me on Instagram and Facebook."
Rico also hopes to take part in St. Paul’s Cinco de Mayo celebration, whether or not he has a permanent space by then.
"At the very least, people will be able to come out and enjoy the food," he said.
Political Leaders Respond to Downtown Eviction Crisis
In response to the closure of the Alliance Bank Center and its impact on Black-owned businesses, local political leaders have stepped up to offer support and seek solutions.
On Tuesday, Mayor Melvin Carter visited all the tenants at the Alliance Bank Center to express solidarity with those facing eviction.
"We share your frustration," said Mayor Carter, who has been actively working to mitigate the effects of this crisis. "I understand the stress and disruption that you’ve faced as a result of Madison Equities' actions. This is wholly unreasonable, and you deserve better."
In a letter addressed to the affected tenants, Mayor Carter outlined several actions the city is taking to support businesses during this challenging time. He announced that, at his request, both Xcel Energy and District Energy have agreed to postpone any actions related to electricity and heating shutoffs until the end of the month. This extension provides tenants with the critical time they need to transition their businesses. Mayor Carter’s letter emphasized the city’s commitment to helping businesses relocate and continue their operations in downtown St. Paul. Mayor Carter assured businesses that the city would support every tenant through this transition and emphasized that St. Paul is invested in the success of its small businesses.
Representative Isa-Pérez Vega has been in close communication with local business owners and is working on legislation to address the ongoing struggles. While acknowledging that the current budget forecast is not ideal, she remains committed to collaborating with all levels of government to revitalize downtown. "Restoring the vibrancy of our downtown is a top priority for my office," she stated. "We aim to support creative economic initiatives that assist existing businesses and encourage new entrepreneurship."
Statement from Dave Higgins, president of the Saint Paul Downtown Development Corporation:
“We are in active discussions regarding Alliance Bank Center – along with The Lowry and other distressed properties downtown – and are working now with partners to see if affected businesses can relocate elsewhere in downtown. We are mindful of and focused on the impacts this has on the small business community and stable housing: both are integral to what is positive about the current experience as well as the future vitality of downtown. While a swift building closure like the Alliance Bank building is alarming, it also serves to strengthen the partnership across public and private sectors in making the most of the opportunity to transform this property, as well as the downtown generally. The Saint Paul Downtown Development Corporation is committed to working with our local partners and the development community to champion a productive, vibrant future for these and other catalyst properties in the downtown core.”
As business owners like Rico and Mr. B continue to navigate the uncertainty caused by the building closures, these statements from local leaders offer a glimmer of hope. While the path forward remains uncertain, the commitment of both the city and state to support affected businesses is a crucial step in addressing the challenges faced by small business owners in downtown St. Paul.
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