ST PAUL, Minn. — When the iconic 1st National Bank Building, U.S. Bank Center and eight other St. Paul properties belonging to Madison Equities went up for sale in May the listing touted the "exceptional location" in the heart of the St. Paul central business district.
But in a letter to the St. Paul City Council, Madison Equities attorney Kelly Hadac struck a much different tone, writing "Downtown St. Paul is in trouble. Crime is up. Bullet holes in the glass on the commercial buildings and elsewhere is no longer uncommon. There is rampant homelessness and drug use. Restaurants have gone out of business. Businesses have gone bankrupt. Skyways are empty."
"I don't recognize the downtown that's portrayed in that letter," said St. Paul City Council Member Rebecca Noecker.
She does recognize several livability and safety concerns downtown and the fact that several businesses have relocated, reduced hours or in the case of the Gray Duck Tavern suddenly closed.
"I would be the first to say that we have a lot of work to do. We absolutely have to make sure downtown is cleaner, is safer, feels more welcoming to people of all backgrounds. So we're not there yet, 100% and that's exactly what something like the Downtown Improvement District is meant to do," added Noecker.
She's referencing the Downtown Alliance Program that deploys safety ambassadors to clean streets, answer questions, provide homeless outreach and supplement building security. After launching in 2021 the alliance is now proposing an expansion that would triple its footprint.
"But even with expanded services, the cost is only increasing two-fold. It's efficient, it's effective and it's impactful."
Public comments about the proposal were overwhelmingly in favor during Wednesday's council meeting, but the letter from Madison Equities sharply criticized the plan writing "now is not the time to increase financial demands upon the owners of real property in downtown St. Paul."
"St. Paul is in a fragile and critical crossroads," said developer David Brooks.
Though one local developer echoed the concerns at the meeting, according to the Downtown Alliance, 220 owners petitioned for the expansion with just two owners opposed.
"These are all things the businesses and residents and visitors tell us they want to see and, in fact, the people living in the part of downtown NOT served, and the businesses NOT served currently by the improvement district, call my office and email me and ask why they aren't getting that level of service," Noecker said.
A big reason Noecker said why all of downtown isn't already covered, is because Madison Equities also strongly opposed signing on several years ago and she said owners, not the city, still have the final say.
"A certain percentage of them, have to say we want to create this district, we will pay into this district, if a certain number of them object, the district cannot be created or expanded," Noecker said.
To get specific on that last point if just 35% of the property owners agree with Madison Equities and file objections to the proposal it will be dropped. That's currently unlikely based on its broad support and the city council is expect to approve the plan next week.