About five years ago a Texas developer was encouraged, by the Mayor, to purchase and convert this property into residential use. In the fervor for development of any kind, the city approved a sizeable subsidy. The developer then terminated office leases of over 30, long term tenants, who mostly were doctors and dentists. Some of these tenants fought to remain in the building. The developer refused to maintain the property, eventually turning off the heat. Those tenants turned to the City Council for help. What support for those tenants came mostly from a minority on the City Council and the District 17 Community Council. The Mayor's interest and support however could not be overcome.Ultimately most of these tenants moved out of the Downtown entirely and many out of the City.
Even with City subsidy, the developer could not secure financing, and the project has floundered since. So my point here is that the problem has been created largely by our own politics. Whether this latest subsidy turns out to have been a wise investment will be clearer five years from now. The actual subsidy is really about $3,000,000. I'm not sure all the details are known at this point to any one person except the new developer. It should be understood that in no practical sense will the City recover any of this investment. If the project does not meet its goals, there will be nothing for the City to recover. This will onl;y have an affect on our vancy rates if the LEIP office moves not only out of the building, but also out of the Downtown. The rest of the building has been off the market for a number of years. Something has to be done with this problem property. Our public process often lacks the long term wisdom or incentive for good, long term public investment. While this project does have merit for our support, I suspect there were ways to further improve the public position, but that's another discussion. John Mannillo Downtown and Highland Park _____________________________________________ To Join: St. Paul Issues Forum Rules Discussion Email: [EMAIL PROTECTED] _____________________________________________ NEW ADDRESS FOR LIST: [EMAIL PROTECTED] To subscribe, modify subscription, or get your password - visit: http://www.mnforum.org/mailman/listinfo/stpaul Archive Address: http://www.mnforum.org/mailman/private/stpaul/
