Investing in Saint Paul – In Big Ways

Great news for Saint Paul, reinvesting in our downtown: two distinct but complementary efforts announced. Both are critical to stabilizing Saint Paul’s tax base, supporting our long-term economic competitiveness, and restoring confidence after years of high-profile vacancies and closures.
 
1. Downtown Vitality Fund (City of Saint Paul – Public Funding) 
Overview

• Total size: $5 million
• Approved by: Saint Paul City Council (unanimous vote)
• Approval date: March 25, 2026
• Administered by: City of Saint Paul, Department of Planning and Economic Development (PED)
• Purpose: To jump‑start downtown recovery by filling and redeveloping underused spaces, expanding housing, and increasing street‑level vibrancy.

 
Funding Breakdown

• $3 million – Housing
  • Office‑to‑residential conversions
  • New housing or rehabilitation of existing buildings
  • Gap financing for projects already underway
• $2 million – Economic Development
  • Commercial capital improvements (interior and exterior)
  • Long‑life equipment purchases (5+ years)
  • Public‑realm improvements (lighting, outdoor seating, public art)

 
Eligibility for the program is open to both for‑profit and nonprofit organizations, with the requirement that proposed projects be located within the Downtown Improvement District (DID) as defined by the Saint Paul Downtown Alliance as of January 1, 2025. Organizations interested in participating can submit an Interest Form.
 
2. Saint Paul Downtown Investment Fund (SPDDC – Private / Mission‑Driven Capital)
Overview

• Total size: $30 million (Lead Investors: Securian Financial & Bush Foundation)

• Announced: February 5–6, 2026
• Led by: Saint Paul Downtown Development Corporation (SPDDC)
• Nature: Mission‑driven, flexible real estate investment fund
• Goal: Acquire, stabilize, and reposition key downtown properties to catalyze long‑term redevelopment

 
What the Fund Supports

• Commercial, residential, and mixed‑use development
• Office‑to‑residential conversions
• Elimination of substandard property conditions
• Pedestrian‑oriented streetscapes and public spaces
• Job attraction and retention
• Minority‑ and women‑owned business development
• Historic preservation and civic space restoration

 
Properties Already Acquired
Using early capital, SPDDC has already secured:

• Alliance Bank Center
• Capital City Plaza Parking Ramp
• Empire Building & Endicott Arcade
• U.S. Bank Center mortgage note
  Many of these holdings were formerly controlled by Madison Equities, whose collapse created significant downtown distress—and opportunity

 
Taken together, these two funds are designed to work in tandem. The Downtown Vitality Fund delivers nimble, public‑facing capital to activate spaces and support near‑term projects, while the larger investment fund brings flexible, patient capital to more complex redevelopment efforts that traditional financing often cannot reach. Aligned with the city’s broader “pandemic to prosperity” strategy, this combined approach signals a clear direction for downtown Saint Paul: more housing, greater street‑level activity, and a more resilient, mixed‑use urban core. 
 
See you in the trenches,
B

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