Dominium, a national developer of affordable housing, plans to build 113 units of affordable senior housing along East Seventh Street, next to a future Mississippi Market grocery co-op.
With environmental remediation costs coming in higher than expected, the two companies have joined forces to apply for clean-up grants and broker an arrangement wherein the market's property taxes help Dominium pay off a $2.2 million loan from the city. The market itself, however, is not receiving public subsidy from the city.
The tax increment financing district was approved by the city's Housing and Redevelopment Authority on Wednesday, a major step toward finalizing the loan agreement.
No stranger to St. Paul or to affordable housing, Dominium recently redeveloped the old Schmidt Brewery on Seventh Street into the Schmidt Artist Lofts, affordable housing targeted to artists.
Via email, the Scoop completed a quick Q-and-A Wednesday on the East Seventh Street project with Dominium developer Owen Metz (OCM):
1. When do you foresee Dominium buying its end of the land parcel from the city?
[OCM] Spring of 2015—we require final approval for our 1st mortgage financing from HUD and final bond and tax credit approval from the City of St. Paul.2. When would Dominium begin and complete construction?
[OCM] We would begin construction shortly after we acquire the parcel and expect construction to take approximately 12 months, putting completion in the spring of 2016.3. Is Dominium helping Mississippi Market financially with the market's land purchase?
[OCM] Neither the City nor Dominium are helping Mississippi Market financially in any aspect, including the land purchase. My understanding is that the Mississippi Market is not seeking any sort of financial assistance from the city and is only purchasing their land from the City.
Some labor organizers are pushing for Mississippi Market to sign a Labor Peace agreement, ensuring that the market does nothing to discourage unionization among its workers. Because the market is not receiving direct public subsidy, St. Paul isn't in a position to require that an agreement be signed.
General manager Gail Graham said the market has long paid the city's official Living Wage and recruited workers from areas surrounding its two St. Paul stores.
Graham forwarded the Scoop the following statement:
We have worked closely with Dominium to figure out how to address some of the complex issues the site presents however we are not receiving help from Dominium to purchase the property.
Mississippi Market is really excited about the opportunity to be a part of the community on the East Side of St. Paul. Serving those who value the connection between food, their families’ health, and the environment has been a primary focus for our co-op since our founding 35 years ago.
We have worked hard to design a building that will be an asset to the community and that will meet community needs for access to fresh, healthful foods, and to information and education about how to use and enjoy them.
We have long had a commitment to pay St. Paul’s Livable Wage and a commitment to hire from our communities. We presently have 200 employees and we expect to create approximately 60 jobs when we open this location.
The city's Housing and Redevelopment Authority is expected to approve a land sale to Mississippi Market on Sept. 24.
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