The City of Saint Paul has approved a significant budget increase aimed at revitalizing its downtown area. The allocated amount of $5 million to the Department of Planning and Economic Development is intended to enhance the vitality and housing options in the city’s core. This move underscores the urgent need for a stronger downtown, which historically has contributed only 12% of the citywide tax revenues, far below the 22%% average of comparable cities.
According to Joe Spencer, president of the Saint Paul Downtown Alliance, a vibrant downtown is crucial for the overall health of the city. The pandemic has exacerbated existing challenges, leading to a pressing need for strategic investments to increase the tax revenue generated by downtown. The goal is not merely to recover lost revenues but to significantly enhance the financial contributions of the downtown area.
The Downtown Alliance has proactively addressed these concerns by releasing the Downtown Investment Strategy in March 2024. This blueprint aims to increase the population and economic activity within downtown Saint Paul, targeting an addition of 20,000 new residents. With current apartment occupancy rates at an impressive 96%, the demand for housing in the area is evident. More residents would not only broaden the tax base but also invigorate local retail and dining establishments, thereby fostering a safer and more active urban environment.
Several recent projects illustrate the potential success of these initiatives. The transformation of Landmark Towers and the nearing completion of Stella Apartments demonstrate how converting outdated office spaces into residential units can invigorate street-level activity. These conversions are essential, as they support small businesses and enhance the appeal of the downtown area, making it more attractive for essential services such as cafes and grocery stores.
As the Hamm Building progresses toward conversion, with a target completion date of 2026, and the Galtier project not far behind, the momentum to revitalize downtown is building. Yet, Spencer emphasizes that the current budgetary commitment is just the beginning. Achieving a robust recovery of the downtown tax base will require additional resources from the city, county, and state.
The Downtown Investment Strategy identifies key projects that are critical for this effort, including the development of RiversEdge and the renovation of the Grand Casino Arena Complex. These initiatives represent a concerted effort to create a more resilient and dynamic downtown.
Community engagement is essential in this process. The Downtown Alliance is actively seeking input from stakeholders to shape a shared vision for the future of downtown. Spencer highlights that a successful recovery will depend on collaboration among community members, businesses, and government entities. The newly launched initiative, Reimagine Downtown Saint Paul: Transforming the Core, invites residents to participate in shaping the economic vitality and urban experience of downtown.
In conclusion, while the initial $5 million investment signals a commitment to revitalizing downtown Saint Paul, it is clear that further support and resources will be necessary to unlock the full potential of this area. By fostering collaboration and community input, the city aims to transform its downtown into a thriving center that benefits all residents and businesses.
