St. Paul's new mayor, Kaohly Her, is wasting little time telling business and development leaders that "St. Paul is open for business" as she works to reassure investors and restart projects that stalled under previous administrations. Her took office on Jan. 2 and is leaning on her finance background and years in the Legislature to push for faster permitting and more visible construction. Her message is that municipal processes should be a tool for growth rather than an obstacle for builders and small-business owners.
In remarks that caught investors' attention, Her told local leaders the city was ready to speed up projects, as reported by Twin Cities Business. That coverage notes that developers in the Snelling-Midway corridor expect two restaurants to open by June, a four-level office building to finish by late summer, and a 158-unit boutique hotel to be ready by early 2027 as part of a larger redevelopment push. Her framed those moves as the kind of visible wins that could convince hesitant investors to place new bets on St. Paul.
Business community cautious but listening
Local business leaders responded cautiously to Her's pitch. The St. Paul Area Chamber president told Axios that the message is encouraging but that the city will need concrete, early wins to overcome skepticism. Developers point to sliding downtown building values and slow deal flow as the immediate tests she will face as she courts private capital.
Mayor's background: finance and local government
Her brings a mix of private-sector finance experience and statehouse work to City Hall. MPR News notes she is the first woman and first Hmong-American to serve as St. Paul's mayor and that she was sworn in on Jan. 2, while the Minnesota House biography lists her election to District 64A in 2018 and details her legislative leadership roles. Campaign and city biographies emphasize an MBA and years in financial services that Her says inform her focus on budgets, revenue growth and streamlining operations.
Arena upgrades and the downtown test
Her's push for confidence is unfolding as large venue and downtown projects seek public and private funding. Twin Cities Business reports a March 2025 request for roughly $395 million in state help to upgrade the Grand Casino Arena, Roy Wilkins Auditorium and the Saint Paul RiverCentre, and notes an arena and venue package has been discussed at nearly $770 million in total cost. Those big-ticket items are the same kinds of deals Her says she intends to shepherd through permitting, financing and intergovernmental talks.
What to watch
In the weeks ahead, what will matter is whether Her can deliver faster approvals and visible street-level activity: new storefronts, tenants moving into office space and construction fences coming down. Axios reports her transition team is focused on "nuts and bolts" fixes rather than sweeping policy launches, which could yield quick wins if the city shortens timelines for small developers. If those early wins arrive, they will be the yardstick the business community uses to decide whether St. Paul is truly open for business.
