25 July 2024
The St. Paul City Council voted Wednesday to double the size of its Downtown Improvement District, roping in residential properties for the first time and all of Lowertown.
Council President Mitra Jalali and Council Members Saura Jost, HwaJeong Kim and Cheniqua Johnson all voted in favor of the expanded boundaries and revised budget.
Council Member Rebecca Noecker, who represents downtown, was absent Wednesday but offered words of support last week after a heavily attended public hearing. Council Members Anika Bowie and Nelsie Yang, who is on maternity leave, were also absent.
The improvement district, first established in 2021 to include commercial properties surrounding Rice Park and downtown’s western corners, will now include all residential properties, as well as commercial buildings throughout Lowertown on the eastern side of downtown.
When the improvement district was first established, state law allowed only commercial and industrial parcels to be included, unless they vetoed the initiative. That law was amended last year to allow for residential condos and multi-family properties to participate, theoretically raising the veto bar.
Organizers drew the original district’s boundaries to avoid the commercial properties owned by Madison Equities, a fierce critic of the effort and downtown’s largest private property owner. In May, Madison said it would try to sell its entire central business district real estate portfolio after the January death of its owner, Jim Crockarell, 79. Madison still opposed the expanded district.
Dues paid by property owners in the Downtown Improvement District will fund added police bike patrols, graffiti and litter pickup, street greeters and other improvements, with the goal of alleviating quality-of-life concerns exacerbated by the pandemic and limited downtown foot traffic in the era of remote work.
“When there are challenges, you can either complain about the problems or you can look for answers to those problems. I believe that the Downtown Improvement District … is an answer to those problems,” Noecker said last week, addressing the council. “It’s not the only thing that we can do, but it is a proven answer.”
Joe Spencer, president of the nonprofit Downtown Alliance, and a group of neighborhood residents spoke last week in favor of the expanded district boundaries, citing public safety concerns downtown.
“There are a number of people in distress in the Lowertown area. My wife is a retired physician, and when she sees somebody lying on the ground, she tries to make sure they’re still breathing,” said Richard Murray, a downtown resident. “I don’t think you can call (911) every time. … So I think this is a way to bring additional resources to bear at a relatively modest cost.”
A handful of community members — including downtown property owner David Brooks, who has raised the possibility of legal action against the city — spoke in opposition last week. “This is not a necessity or an emergency, and I don’t believe that it is the answer to the problems we have. … In my opinion, now is not the time to be imposing a (nearly) $3 million tax to residents, businesses and building owners for five years,” Brooks said.
Some residents cited the potential for negative interactions with law enforcement.
The budget for the expanded district is $2.75 million. The proposed rates will be based on the square footage and linear front footage of residential and commercial buildings.
The new improvement district will roll out on Jan. 1, unless 35% or more of the newly affected property owners file objections with the city. In that case, the proposal would be dropped. But that outcome appears remote, given the generally high level of support for the initiative.
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