The City of Saint Paul has approved a significant budget increase aimed at revitalizing its downtown area, committing an additional $5 million to the Department of Planning and Economic Development. This investment is designed to enhance downtown vitality and housing, reflecting a broader strategy to strengthen the economic base of the city.
Prior to the pandemic, downtown St. Paul accounted for only 12% of the city’s tax revenues, markedly lower than the average of 22%% seen in comparable cities. City officials are not merely aiming to restore these figures but are focused on dramatically increasing the share of tax revenue generated by the downtown sector. “The goal should be to unlock a tremendous benefit for the whole city,” stated Joe Spencer, president of the Saint Paul Downtown Alliance.
Strategic Investments to Drive Growth
The need for strategic investments has become clear, particularly as many downtown buildings have remained underutilized. “We cannot afford to let obsolete and underused towers sit empty, dragging down confidence in the heart of our city,” Spencer added. Recognizing this challenge, the Saint Paul Downtown Alliance began preparing for a transition, culminating in the release of the Downtown Investment Strategy in March 2024. This comprehensive plan aims to add 20,000 new residents to the downtown area, thereby expanding the tax base and invigorating local businesses.
With apartment occupancy rates hovering around 96%, the demand for housing in the downtown sector is evident. Previous transformations, such as the renovation of Landmark Towers and the development of Stella Apartments, illustrate the potential benefits of converting obsolete office spaces into residential areas. These projects have not only filled vacant buildings but have also stimulated street-level activity, bolstering local businesses and enhancing the retail landscape.
Community Engagement and Future Development
The recent budget increase serves as a signal of the City of Saint Paul’s commitment to fostering a vibrant downtown. Yet, Spencer cautioned that the $5 million allocation is just a starting point. “We will need additional resources from the City, County, and State to realize the full economic potential of our city and region,” he explained. Key development strategies outlined in the Downtown Investment Strategy include plans for the RiversEdge, the renovation of the Grand Casino Arena Complex, and the development of Central Station.
To facilitate this growth, the Downtown Alliance is actively engaging the community to gather input and shape a collective vision for the future. This initiative, titled Reimagine Downtown Saint Paul: Transforming the Core, encourages residents and stakeholders to participate in shaping the downtown’s economic vitality and urban experience. An online survey is available at downtownstpaul.com/reimagine for those interested in contributing their views.
By aligning the efforts of community members, businesses, and government entities, there is potential for significant progress toward a revitalized downtown that benefits all residents and businesses in the region. The work ahead will require collaboration and commitment, but with the recent budget increase and community engagement, Saint Paul is poised to take meaningful steps toward a stronger, more resilient urban core.
