Once upon a time, the owners of the vacant grass lot across the street from KSTP News studios in St. Paul figured they could build a five-story office building and fill at least half of it with high-end "Class A" office space above a grocery store at the very border with Minneapolis.
Image may be NSFW.
Clik here to view.
The Wellington Management plans predicted the doors would open at 2700 University sometime toward the end of 2010, and the development would be in place before the first Green Line light rail trains carried passengers from one city to the next.
Whatever the current prospects for filling Class A office space in St. Paul, the recession of 2007 to 2009 popped a whole in that bucket, and the building did not get built.
The Pioneer Press' Dave Orrick and Gita Sitaramiah reported in their development round-up back in 2010:
6. 2700 The Avenue / Located steps from the proposed Westgate Station on the Central Corridor line, Wellington Management is still promoting its planned mixed-use project — three floors of class A office space above a grocery store or other retail — as available this fall, and tenant negotiations are under way. The project at 2700 W. University Ave. has been continually scaled back from its original $24.3 million, nine-story vision. The developer has secured a $280,000 government grant, but financing still appears to be a challenge before ground can be broken.
Enter the Green Line, and the Indianapolis development firm of Flaherty and Collins.
Last shot: 2700 University. $54 million. 248 units. 50 affordable. Westgate LRT stop. 3000 sq. ft retail. pic.twitter.com/SExFdBF1jm
— FredMelo, Reporter (@FrederickMelo) June 23, 2015
On Tuesday, St. Paul Mayor Chris Coleman joined representatives of the firm, the Metropolitan Council, Minneapolis-based UrbanWorks architects, Kraus-Anderson construction, and a St. Paul-based affordable housing developer -- the Local Initiatives Support Corporation (LISC) -- in breaking ground on a different vision entirely. The officials acknowledged that plans and even developers had changed since their conversations in 2007. With shovels in the earth, the various players announced the beginning of construction for "2700 University," a six-story, $54 million luxury/mixed-income apartment building, the likes of which you probably wouldn't find in Uptown.
Did St. Paul just go Uptown? pic.twitter.com/n9CzcCzDYd
— FredMelo, Reporter (@FrederickMelo) June 23, 2015
Says it all... pic.twitter.com/bqmLS3IdQL
— FredMelo, Reporter (@FrederickMelo) June 23, 2015
As part of a 14-acre campus of sorts, the new site will be located next to the Metro Lofts building, home to Dunn Brothers and Snap Fitness, and in front of the 808 Berry Place apartments. St. Paul has been transitioning the former industrial land to new uses for a decade or more.
But when it opens in late 2016, this won't be just another luxury apartment building, said Ryan Cronk, a VP with Flaherty and Collins. Of the 248 apartments, about 50 will be set aside as affordable rentals for people who earn 50 percent or less of area median income (AMI).
The rest of the studio, one-bedroom and two-bedroom units will rent for market prices, which are estimated to be $1,400 to $1,500 on average. In other words, there are studios that will lease for $669, and two-bedrooms for $1,925, and everything in between.
Other features include a heated saltwater pool, a sundeck, a fitness center, an "outdoor living room" with fire pits and elevated dog park and pet grooming spa, a bicycle facility with bike stands, pumps, tools and a work bench, a water bottle fitting station and a television lounge. There's also a cyber cafe, Wi-Fi throughout the building, moveable kitchen islands, a club room with billiards... the list goes on. Did we mention the heated saltwater pool?
The building will also contain 3,000 square feet of street-front retail space facing University Avenue's Westgate light rail station, which began greeting trains and passengers in June 2014, as well as 219 parking garage spaces below grade.
"The forward thinking that is going on here is incredible," Cronk told the crowd, noting that the building will be Silver LEED certified, a competitive level of environmental building certification not commonly found in St. Paul.
"There's not too many in the area that have that certification," Cronk said. "Every unit is going to be all LED lighting. ... Every unit will have a smart thermostat."
St. Paul Mayor Chris Coleman called 2700 University indicative of the potential of the Green Line, which debuted last year, in spurring economic development. "I can't even remember the first conversations I had about the potential for this property," said Coleman. "This development I think is unique -- it's special."
In addition to bringing in a mix of market-rate renters and reduced-rate renters, the building appears to be arriving during a period of population growth for the city. Recent Census estimates have it that the city is nearing 300,000 residents after decades marked by population stagnation or decline. City living has become cool again, and 2700 University is proof.
"In a few short years, we will have the largest population that we have ever had in the city of St. Paul," the mayor said. "It wasn't too long ago that these trends were going in the wrong direction. We were losing population."
Getting to the groundbreaking took years of planning and coordination among a number of entities, both public and private, over the course of eight years or more. How complicated was it?
Very. Jon Commers, who sits on the Metropolitan Council, noted that the council assisted with "Transit Oriented Development" (TOD) grants for site acquisition and environmental improvements. He predicted that workers will be able to get to more jobs via public transit from that location than virtually any other in the region.
Jon Commers, Met Council member, says Transit Oriented Development grant helped with site acquisition, etc pic.twitter.com/7joevbwzfu
— FredMelo, Reporter (@FrederickMelo) June 23, 2015
Jonathan Sage-Martinson, director of St. Paul's Planning and Economic Development Department (PED), noted the countless hours of city staff time that went into planning, including the work of former city Housing Director Al Carlson, who retired before seeing the development to fruition.
Finding financing was a bit of a bear. Andriana Abariotes, director of Twin Cities LISC, noted that her organization worked closely with BMO Harris Bank to develop a low-interest, short-term loan product geared toward cash flowing the project to completion and through the lease-up period.
The $6.2 million "mezzanine" loan will be paid back over a 3-to-5 year term, unlike your typical mortgage loan, and at a lower rate than typical. BMO put up 40 percent, and LISC put up 60 percent.
"It's a new product for us," Abariotes said. "We have a high need for affordable housing in this market, and very limited tools." She credited the bank with "bringing a mission focus to what's really a market-rate opportunity."
In addition, LISC's affiliated National Equity Fund provided $5 million in low-income tax credits. BMO Harris financed a traditional $28 million construction loan, and LISC, HUD, grants and the Good Lord only knows what else completed the funding soup.
Could that soup be replicated elsewhere along the Green Line, or along another transit corridor throughout the metro? "We're starting to show the way, that that's possible," Abariotes said.
As for the building's appearance, expect dark gray brick, metal paneling, cement board, and somewhat of a similar palette to the the Metro Lofts building next door. Fans of St. Paul take note: the giant "Saint Paul" sign situated in the renderings along the roof line? That's staying.
This has taken a decade to break ground, but $54 million in construction awaits pic.twitter.com/tATMquQpdC
— FredMelo, Reporter (@FrederickMelo) June 23, 2015
Entering St. Paul on the Green Line will be a whole new experience come late 2016.
Eager to get a sense of what 2700 University means for the neighborhood, the Scoop wandered down to Sharret's Liquors, a few blocks east by the Raymond and University Avenue intersection. Has the Green Line impacted sales for the better or for the worse? Would 2700 University make much difference?
The clerk there felt that yes, light rail construction had been near-devastating for the business. Now that it's up and running, the Green Line has brought some customers, though the elimination of several bus routes has eliminated some. That's basically a wash, he felt. At least things are stable.
The loss of street front parking along University was a big concern. On the other hand, the arrival of the C-and-E Lofts across the street has been a major boon. And would the lofts exist or flourish without the transit line in place?
All in all, he felt the lofts were the biggest change for the better in terms of bringing in new customers -- another sign that 2700 University may help bolster local businesses and bring in new ones.
The post 2700 University -- a touch of Uptown MPLS in St. Paul? appeared first on City Hall Scoop.