Public Money

• One of the largest government projects in Minnesota state history (topping even the $250 million spent on the 35W/Mississippi river bridge) is the Central Corridor light rail line.  This 11 mile line will link Minneapolis and Saint Paul; costing almost $1 billion by the time it is finished in 2014.  The route will travel mostly down University avenue but will also be tearing up roads around the capital, Hamline Avenue and the University of Minnesota.  While construction has started on the project West of Hamline Avenue, many obstacles stand in the way of completion including no resolution on how the light rail will route through the University of Minnesota.  Additionally, at least a dozen lawsuits have been sued by various businesses and organizations including the Minnesota Public Radio, historic churches, and various business organizations that have members that will be affected by the construction and/or the route.
• While the Penfield project has been on the books for many years in Downtown Saint Paul, the project has continued to be scaled back.  When first proposed by the developer, it was going to be a 40 story hotel and condo high-rise.  then the project was scaled to 30 stories and now just 11 stories.  The make up of the building will change to have typical apartments at market rates.  The City of Saint Paul will take over the $50 million project as the developer, which has some people upset.
• The West Side Flats is mostly a private $30 million project that will hold 168 apartments in a five-story building.  This prime real estate was originally going to hold luxury condos, but now the developer is reworking the project to have 20% of the units be affordable housing.  In exchange, the government will chip in $600k to build the roads and sidewalks.
• Most of Saint Paul’s hospitals (Childrens, United, and St. Josephs) all have multi-million dollar expansions or renovations in the works.  United will spend $34 million on a new six story emergency room.  Children’s will completed its $300 million expansion of its St. Paul and Minneapolis campuses.  Not to be left out, St. Joseph’s is also adding a $20 million, 20,000 square foot expansion to it emergency rooms.

Private Money

• The Union Depot continues to try to make a comeback.  This Lowertown landmark was once slated to be condos, shopping and restaurants until the buildings developer was unable to completed the project.  Now Ramsey County, who currently owns the property, along with state and federal help will determine the next step for this historic building.  Most plans call for it to once again become the hub for all public transportation in Saint Paul.  These plans will include Greyhound buses, linking the Central Corridor light rail into the Amtrak service and finally the future high-speed rail to Chicago.  Estimated are around $240 million, but no funding has been secured, despite demolition and remodeling already starting.
• One of the first new Central Corridor developments happening on University Avenue is the Frogtown Square development.  This $14 million project will have retail space on the main floor and low-income senior housing on the 2nd with parking underneath.  This project is well underway and has received $3.4 million in funds from the St. Paul Housing and Redevelopment Authority.
• The coming light rail project is also sparking push for other housing projects including The Lyric at the Carlton Place.  This would be a 171 unit apartment building that would marketed toward arts and music enthusiasts.  These additional units would complement the lofts finished about a year ago.
• Located near the proposed Westgate Station for the Central Coridor line is the 2700 The Avenue.  This mixed use project with office, grocery and retail will hopefully break ground this year as the project has been scaled back by 60% from its earlier designs.  Although some funding has come from a government grant, financing continues to be an issue.
• As Snyder’s has closed up shop in the Highland Park neighborhood, Walgreens is waiting on final city planning commission approval to build a new store and additional retail space on that land.

These are just some of the almost 20 public projects and 20 private Saint Paul Real Estate projects that are being either proposed, built, or finished in Saint Paul currently.  You can read more about the projects here.

FEMA has been updating their maps nationwide that designate areas which have varying levels of flood risk.  They update these maps every 10 years or so.  Often after large losses from flooding (this time the Cedar Rapids flooding triggered the map updates).  Some of these areas, including the Union Depot, and the Great Northern building, are inside the 100 year flood zone risk area.  Being inside these flood zones can require a property owner to purchase flood insurance.  This can be especially concerning as all condo owners in the Union Depot would be required to buy insurance regardless of what floor they are on.  Even the 5th floor condos could be required!

The City of Saint Paul has been working to change FEMA’s mind about the boundary lines-generally between Kellogg Boulevard and Shepard Road but in one instance as far inland as Prince Street.  They are looking at possibly regrading streets, installing levees, or even raising curbs to have areas removed from the flood zones.  Unfortunately, it is unlikely the City will be able to to change FEMA’s mind prior to the new flood maps coming out on June 4.

Statements from FEMA confirm that they believe they are doing accurate and necessary work in Saint Paul despite objections.  Because of flood insurance claims in recent years, we can imagine that FEMA is being more aggressive in marking areas in the flood zone.  With data from this spring’s flood still being examined it is very early in the process to see if the City will invest any capital into making changes or maybe private sectors will step in depending upon the return.  In the end, we need to protect our neighborhoods.

The lower lying West Side is also considered in the flood zone.  Fortunately they will not be required to buy flood insurance because they are in the process of having their levee system certified by the federal government.  This process has been formally applied for, but stalled in red tape for a couple years.

Fast forward over 40 years and those old homes have been replaced by new condos starting in 2003. The area is now called Upper Landing neighborhood and is home to upscale condos and brightly colored apartment buildings. It also has miles of paved trails for walking and having great views of the Mississippi River. Over the past 15 years, St. Paul Riverfront Corporation has championed the revitalization of the city’s riverfront.

Today’s West Side homeowners are still watching the river closely, as the river is estimated to crest at 5 feet above flood stage as early as the end of this week. When this revitalized part of Saint Paul was developed, over 33,000 loads of dirt were hauled in to raise the entire area above its previous level. Now the streets are set higher than the 100 year flood mark. Additionally, all the living space are sitting on top of garages putting the first floor living spaces above the 500 year high water mark.

Despite these significant improvements, property managers have alerted residents of possible seepage in the garages, some of which sit below grade level. Additionally, homeowners are being advised that they may need to move their vehicles out of the garages if the waters begin to overflow the river banks. The neighborhood residents could be required to evacuate even if the river level is not affecting their living space because when the river hits 11 feet above flood stage, this height could force the city to close its sanitary lift station. Some lower lying Saint Paul streets could also be closed temporarily.

The St. Paul City Council heard about this innovative solution and honored the block club members, the police chief, and the school principle with a plaque on Wednesday.