Lyndale Avenue Construction to Last Three Years in 2028

Business owners along the route should prepare for extended disruption as the city eyes a two-to-three-year timeline.

Updated on Oct. 26, 2026 in Openings & Closings

Isometric editorial illustration showing orange road construction barricades and traffic cones, illustrating the upcoming city infrastructure project.
Minneapolis officials are planning a multi-year redesign of Lyndale Avenue starting in 2028, with state aid sought to support local business revenue. AI Illustration. Upload story photo >

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Minneapolis is preparing for a two-to-three-year redesign of Lyndale Avenue scheduled to begin in 2028. To mitigate construction impacts, officials are adjusting work hours and exploring state-level grant programs for local business owners.

Why it matters

Business owners in Minneapolis face significant revenue risks from extended road projects, as seen by a 15-19% sales decline at LITT Pinball Bar during the 18-month Hennepin Avenue reconstruction. Fiscal constraints have complicated past local efforts to provide direct compensation, shifting the focus toward state-level aid.

The planned Lyndale Avenue project is expected to last two to three years, surpassing the 18-month duration of the recent Hennepin Avenue reconstruction. While a $900,000 local business loan amendment was proposed in 2024, no funds were ultimately disbursed.

The players

Aisha Chughtai

Minneapolis City Council member who co-proposed a $900,000 business loan budget amendment.

Aurin Chowdhury

Minneapolis City Council member who co-proposed a $900,000 business loan budget amendment.

Elizabeth Shaffer

Minneapolis City Council member who cited city fiscal challenges as a barrier to compensating businesses for revenue losses.

Katie Jones

State Representative identifying potential funding sources through the Department of Employment and Economic Development.

LITT Pinball Bar

Local Minneapolis establishment that recorded a 15-19% decline in monthly sales during nearby infrastructure work.

The details

City officials intend to accelerate the Lyndale Avenue timeline by extending daily construction hours to reduce the project's overall length. Meanwhile, Rep. Katie Jones is working with the Minnesota Department of Employment and Economic Development to identify potential grants, which could provide relief to affected businesses. These efforts aim to avoid the outcomes of prior projects where local businesses struggled with revenue losses without city-backed financial support.

Timeline

  1. April to October 2023: LITT Pinball Bar reported a 15-19% sales decline.

  2. 2024: City council members introduced a $900,000 budget amendment for business loans.

  3. 2024-2025: Hennepin Avenue reconstruction lasted 18 months.

  4. 2028: Lyndale Avenue construction is scheduled to begin.

Market Landscape

The Lyndale Avenue redesign follows the 18-month Hennepin Avenue reconstruction that resulted in significant sales declines for local operators. The city is now adjusting its strategy to avoid the lack of business compensation seen in that prior infrastructure project.

Operators along Lyndale Avenue should prepare for a multi-year construction environment starting in 2028 by reviewing cash reserves and potential state grant eligibility. Owners should track upcoming city council sessions for finalized details on the Department of Employment and Economic Development grant program.

The takeaway

The lack of past compensation for construction-related revenue loss underscores the need for businesses to prioritize independent liquidity. Operators should watch for the release of specific criteria for state-level grants, which may provide a buffer against the two-to-three-year construction timeline.

Further reading

Find more updates on local business impacts at Minneapolis Openings & Closings.

Source note: This article includes information reported by Twin Cities Business.

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Should local governments financially compensate small businesses for revenue losses caused by public road construction?