Saint Paul has taken a significant step towards revitalizing its downtown area by approving a $5 million increase to the budget for the Department of Planning and Economic Development. This funding is dedicated to enhancing downtown vitality and housing within the city’s core. The initiative signals a commitment to transforming a downtown that has historically contributed a mere 12% of citywide tax revenues, well below the average 22%% found in similar cities.
The urgency of this investment stems from the need to bolster the downtown economy and improve overall city health. Joe Spencer, president of the Saint Paul Downtown Alliance, emphasized the importance of strategic investments in unlocking benefits that extend beyond the immediate area. He noted that empty and underused buildings detract from the heart of the city, undermining public confidence.
In March 2024, the Downtown Alliance released the Downtown Investment Strategy, a comprehensive plan aimed at increasing the population density and attractiveness of downtown Saint Paul. This strategy includes a feasibility study indicating that many existing buildings are well-suited for conversion to residential use. Such conversions are seen as a competitive advantage for Saint Paul, especially compared to other cities facing similar urban challenges.
The progress of recent projects, such as the transformation of Landmark Towers and the nearly completed Stella Apartments, illustrates the potential impact of these initiatives. Converting obsolete office spaces into housing not only fills buildings but also stimulates street-level activity, benefiting small businesses and enhancing the availability of essential amenities like cafes and grocery stores.
Looking ahead, the Downtown Investment Strategy aims to attract 20,000 new residents to the downtown area. With current apartment occupancy rates at an impressive 96%, the demand for housing is clear. More residents living downtown would contribute to a broader tax base and foster a healthier retail environment, which are crucial for urban safety and vibrancy.
While the initial $5 million investment is a promising start, Spencer cautioned that it will not be sufficient to foster a robust recovery for the downtown tax base. He called for additional resources from the city, county, and state to maximize the economic potential of the area. Key development strategies outlined in the Downtown Investment Strategy include projects like the development of RiversEdge and renovations of the Grand Casino Arena Complex.
The Downtown Alliance is actively engaging with the community to shape a shared vision for the future of downtown Saint Paul. This collaborative approach aims to align the interests of residents, businesses, and developers, ensuring that future developments meet the needs of the community.
For those interested in participating in this vision, the Downtown Alliance has launched the Reimagine Downtown Saint Paul: Transforming the Core initiative. This community-driven effort invites public input through an online survey available at downtownstpaul.com/reimagine.
With a collective effort from the community and supportive investment, Saint Paul is poised to create a stronger and more resilient downtown that benefits the entire city and its residents.
