St. Paul Downtown / Offices being converted to affordable housing
Pioneer Press by Laura Yuen September 21, 2007While condo construction in downtown St. Paul has come to a near standstill, several plans for low-income apartments appear to be producing a new kind of housing rush.
At least three developers are aiming to convert vacant office space into affordable rentals. Work on the Commerce Building began last week, and plans are on the drawing board to redevelop the Minnesota Building and the old Renaissance Box.
Developers of the latter two projects are competing for more than $850,000 in low-income tax credits, a financing piece essential to secure several million dollars in private investment. The city's Housing and Redevelopment Authority will consider the proposals Wednesday.
The two initiatives are similar, offering a way to fill historic buildings sitting empty. The proposed apartments would primarily target tenants who make roughly half the median income.
According to the U.S. Department of Housing and Urban Development, St. Paul's median income for a four-person family is $78,500.
The various redevelopment efforts show the growing demand for affordable housing, developers say.
But some North Quadrant neighbors are fighting Central Community Housing Trust's plans to build 70 units in the Renaissance Box building, a failed community hub that closed two years ago. The opponents say they have enough low-income housing complexes in the area, some of which they say are poorly managed.
City Council Member Dave Thune, who represents downtown, said, he too, cannot support the Ren Box proposal, primarily because it didn't allow for retail on the ground floor. Plans call for relocating two first-floor businesses, the Sibley Bike Depot and a community theater space. Built in 1915, the structure was once home to the O'Donnell Shoe Factory.
Thune added, "I am disappointed they didn't push harder to make it artist housing."
Gina Ciganik, vice president of the housing trust, said property-management consultants have advised that retail would struggle at the tucked-away Ren Box location. The developers say they need to relocate the bike depot and the theater to make room for underground parking.
"We're trying to strengthen the market by getting rid of vacant buildings," she said. "Let's get people in here - that's what will support retail."
A city staff report recommended granting $854,000 in tax credits to the Minnesota Building project. It favored the project over the Ren Box, primarily because the Minnesota Building is closer to a transit corridor.
But some community members, including the downtown district council, wish the tax credits would go to the Ren Box. Even the two would-be ousted organizations, the bike shop and Gremlin Theatre, have written letters supporting the redevelopment.
Bob Spaulding, a member of the neighborhood's CapitolRiver Council, said he was impressed by the housing trust's willingness to work with the community. Even before Central Community bought the building in 2006, it had met with neighbors several times to share the latest plans, Spaulding said. "The Central Community Housing Trust came to us early on, and we had a role in encouraging their presence in the neighborhood," he said.
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