The City of Saint Paul has approved a substantial budget increase aimed at revitalizing its downtown area, allocating an additional $5 million to the Department of Planning and Economic Development. This investment signals a commitment to enhancing the vibrancy and economic potential of downtown, which has historically underperformed compared to similar cities.
Before the pandemic, downtown Saint Paul contributed only 12% of the citywide tax revenues. In contrast, peer cities averaged 22%. The aim is not merely to recover these losses but to significantly increase the tax revenue share generated by downtown. According to Joe Spencer, president of the Saint Paul Downtown Alliance, strategic investments are essential for unlocking benefits that will resonate throughout the entire city.
Transforming Urban Spaces
Spencer emphasizes that the city cannot afford to let vacant and outdated buildings undermine confidence in its core. In response, the Downtown Alliance has prepared for this transition and released the Downtown Investment Strategy in March 2024. This blueprint aims to boost density and attractiveness in downtown Saint Paul, supported by a feasibility study that indicates many existing structures could be efficiently converted for new uses.
Recent projects like the transformation of Landmark Towers and the nearly completed Stella Apartments showcase the potential of repurposing obsolete office spaces into housing. This trend not only fills buildings but also invigorates street-level activity, benefiting local businesses and fostering a vibrant community atmosphere. With ongoing conversions such as the Hamm Building set for 2026 and the Galtier project following closely, the momentum for change is palpable.
The Downtown Investment Strategy outlines a goal of adding 20,000 new residents to the downtown core. With current apartment occupancy rates at 96%, the demand for residential spaces is evident. An increase in population will expand the tax base, stimulate retail and restaurant growth, and enhance foot traffic, ultimately contributing to improved safety in the area.
Building a Collaborative Future
This investment is crucial not only for attracting developers but also for fostering a wider coalition of stakeholders. The Downtown Alliance is actively engaging the community to gather input and shape a collective vision for downtown’s future. This collaborative approach is vital for ensuring that all voices are heard in the revitalization process.
While the initial $5 million investment is a positive step, Spencer notes that it will not suffice for a robust recovery of the downtown tax base. Additional resources from the City, County, and State will be necessary to fully harness the economic potential of the area. The Downtown Investment Strategy identifies key components necessary for this effort, including the development of RiversEdge, the renovation of the Grand Casino Arena Complex, and improvements to Central Station.
Saint Paul is demonstrating its readiness to engage in the hard work required to build a more resilient downtown. The Downtown Alliance recently launched the initiative Reimagine Downtown Saint Paul: Transforming the Core, seeking community input to guide future economic vitality and urban experience. Residents can participate by providing feedback through an online survey available at downtownstpaul.com/reimagine.
As Saint Paul embarks on this ambitious journey, the focus remains on creating a downtown that serves the interests of residents, businesses, and the broader region. The collaborative efforts among community members, businesses, and government entities are crucial for driving meaningful progress in revitalizing the city’s heart.
