Plaza del Sol Latino Center Opens in St. Paul
The $11 million Payne Avenue business center offers incubator space for Latino food entrepreneurs and offices for area businesses.
Updated on Nov. 7, 2026 in Openings & Closings
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Plaza del Sol, a Latino business center on Payne Avenue in St. Paul, has opened after a multi-year renovation. The project provides incubator space for five Latino food businesses and offices for other area businesses.
Why it matters
The center addresses a neighborhood where more than half of households earn less than $75,000 a year and 46% of residents speak a language other than English. Its incubator model is intended to help local entrepreneurs grow into full-sized restaurants and bakeries.
The $11 million project was financed partly by $5 million in Minnesota state loans used to buy a building the Latino Economic Development Center acquired six years ago. Whether trainees will launch full-sized restaurants and hire workers within two years remains unproven.
The players
Latino Economic Development Center
The Latino Economic Development Center is a St. Paul nonprofit that supports Latino entrepreneurs and economic development in the Twin Cities.
LISC
LISC is a national community development organization that provides financing and support for neighborhood revitalization projects.
Alerus Bank
Alerus Bank is a regional financial institution headquartered in North Dakota with a presence in the Twin Cities.
U.S. Bank
U.S. Bank is one of the largest commercial banks in the United States, headquartered in Minneapolis.
The details
The Latino Economic Development Center bought a dilapidated former furniture store building six years ago and renovated it over three years. Funding came from Congress, the Minnesota Legislature, the city of St. Paul, Alerus Bank, U.S. Bank, LISC, and Propel, while the pandemic, the George Floyd riots, inflation, construction surprises, and a federal immigration crackdown raised costs and delayed the project.
Timeline
Six years before opening: The Latino Economic Development Center buys the building with state loans.
Three years before opening: Renovations on the $11 million project begin.
November 7, 2026: Plaza del Sol opens in the Payne-Phalen neighborhood.
Within two years of opening: Trainees aim to launch full-sized restaurants and bakeries and hire more workers.
Market Landscape
The plaza relies on Minnesota state loans to acquire and renovate a commercial building, a financing approach that places it within the state's broader use of public money for neighborhood commercial redevelopment. Its incubator model targets food businesses in a Payne-Phalen corridor where many residents have limited English proficiency.
Residents and aspiring food entrepreneurs in Payne-Phalen gain access to shared incubator space and business training at the plaza. The center's offices are also available to other area businesses seeking space on Payne Avenue.
The takeaway
Public-private financing can make neighborhood commercial space possible where private capital alone may not. Local food entrepreneurs seeking to grow should watch for training and incubator programs that offer both space and business support.
What happens next
Trainees at the plaza are expected to launch full-sized restaurants and bakeries and hire more workers within two years of opening.
Further reading
For more local business openings, browse Openings & Closings coverage.
Source note: This article includes information reported by Star Tribune.
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