I have dropped Chestnut St to L2 at that location so you can connect the alleys. A few things need fixed here, though.

• Proctor Aly needs to be a Parking Lot Road instead of a Street. Alleys in Kentucky are always set to Parking Lot Road. If it has a name like this one, name it; if it doesn't have a proper name, check the box for None.
• These segments are State St. Change the name to State St and the road type to Street.
• Mimosa Aly continues along this segment. It needs to be named Mimosa Aly and the road type set to Parking Lot Road.

Once you have made those corrections and connected each alley to Chestnut St, please post a new PL for Chestnut St either here, the SAT Slack channel, or the Kentucky Google Hangout for another editor R2+ to relock. The link for that road will change after you connect the alleys because cutting the segment creates new segment IDs (explained in the Permalink wiki in that link).