South Lyndale Avenue's reconstruction is still two years away, but anxiety is already running high for businesses on the Minneapolis corridor.

Why it matters: A major disruption like this could prompt more business closures that would add to the growing number of vacancies. In fact, the threat of two years or more of construction already has.

What they're saying: Lago Tacos, after 10 years near the Lake Street intersection, will close in May, when its lease ends.

• Owner Tom Ferris told the Minneapolis/St. Paul Business Journal that the construction project would deal a major blow to foot traffic and parking.

State of play: It's been a rough five-year stretch on the independent business-filled corridor, LynLake Business Association co-chair and Balance Fitness Studio owner Morgan Lazier told Axios.

• First, there was the pandemic, then the destruction of Lake Street after the killing of George Floyd, followed by a rise in crime and three years of construction on nearby Hennepin Avenue, which several business owners say has kept people away from the area.

Zoom in: Long-running businesses Iron Door Pub, Herkimer, Muddy Waters and Top Shelf have closed since 2020. But there have also been some wins in the neighborhood with the addition of restaurants Wrecktangle Pizza, sports bar Beckett's and the newest and buzziest, Jade Dynasty.

• Still, Lazier said, several high-profile buildings and businesses along the corridor are for sale, which she sees as troubling.
• "It's basically (going to be) a decade (of struggles) if this road construction happens," Lazier said. "Nobody can survive that."

The other side: Transit advocacy organization Move Minnesota is pushing for the redesigned street to include features that speed bus service and improve safety for walkers and bikers, the group's executive director, MJ Carpio, told Axios.

What we're watching: Some Lyndale businesses are asking for the county to delay the project to see how the Hennepin Avenue redesign plays out.

• "We can't handle any more of this," Flower Bar owner Andrea Corbin said. "Uptown is going to be a desolate ghost town and take years to bring it back. You can't fire up one corridor and then fire up another corridor and expect things to be OK."

Go deeper on the street redesign options

President Trump's executive order to close down the Department of Education last week raised big questions about what happens to more than $1.5 trillion in student debt.

Why it matters: The department plays a key role in managing student loan debt held by more than 775,000 borrowers in Minnesota alone.

State of play: The Small Business Administration will handle the nation's student loan portfolio, Trump announced Friday.

Zoom in: Betsy Mayotte, president of The Institute of Student Loan Advisors, told Axios that if the new agency sticks with the entities that already manage its loans, the disruption to borrowers could be minimal.

Yes, but: If federal student borrowing is put in jeopardy, some students may opt to skip college rather than deal with the hassle of private loans.

• It's also possible that the agency changeover could slow the processing of applications and payments.

The bottom line: Concerned borrowers should go to studentaid.gov and screenshot their payment history, NerdWallet lending expert Kate Wood advised Axios.

What we know about Pell grants and income-driven payment plans…

🏀 Wayzata routed Cretin-Derham Hall for the 4A state boys basketball championship. (Full results via Star Tribune)

🍺 Dangerous Man Brewing is shutting down at the end of the month, a year-and-a-half after closing its Northeast Minneapolis taproom. (KARE 11)

• The brewery will refund donors to its online fundraising campaign to build a seasonal taproom at its Maple Lake production facility.

💨 The city of Minneapolis fined the contractor demolishing the former Smith Foundry in the East Phillips neighborhood for failing to control dust pollution. (Sahan Journal)

🗳️ The field of candidates running for the Northern Minnesota Senate seat left open following Sen. Justin Eichorn's resignation includes the wife of a sitting GOP legislator and the son of former Senate Majority Leader Paul Gazelka. (KARE 11)

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Meet The Smallest Museum in St. Paul, a 3-foot by 2-foot "micro museum" housed in a vintage firehose cabinet outside Workhorse Coffee.

• The current exhibit by local artist Aubrey Lee features tiny treehouses made of wood dyed with tea and coffee — and the ironically-labeled "World's Largest Coffee Bean."

Stop by: 2399 University Ave West. Open anytime, year-round, for free.

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