South St. Paul’s nearly century-old brick library at 106 Third Ave. N. may soon trade hush-hush stacks for squeals and climbing walls. The city has agreed to transfer the vacant building to the Economic Development Authority so it can be sold for an indoor playground and family recreation center. A development group led by local investor Peter Corniea and the owners of Minneapolis Gymnastics is reviewing purchase and development agreements, and officials say the reuse could begin later this year if all approvals line up. City leaders say the deal would move an underused historic building into private hands and back onto the tax rolls.
Old Building, Fresh Idea
The two-story brick structure, built in 1927 and expanded in the 1960s, comes in at roughly 11,840 to 12,000 square feet. It closed as the city’s library on Dec. 1, 2023, after a Dakota County replacement branch opened in early 2024, according to a city request for proposals (City of South St. Paul). The site’s tight parking and quirky half-level floors have complicated some reuse ideas, but residents have made it clear they want the building preserved and put back to work. In response, the city has been studying options and seeking proposals to find a reuse that pencils out financially.
Developers Pitch Play Center
The proposal on the table comes from a group led by Corniea and the owners of Minneapolis Gymnastics, who want to convert the former library into what City Administrator Ryan Garcia described as “an indoor playground, a family play center for families with younger children,” as reported by Finance & Commerce. At a recent council meeting, the city agreed to convey the property to the South St. Paul Economic Development Authority for $250,000 so the EDA can act as the conduit for a sale. The EDA could hold a public hearing on the proposal at its April 6 meeting, and officials say the developer is currently reviewing the purchase and development agreements with the city.
Costs And Constraints
A reuse study prepared for the city in May 2025 found the building’s condition “generally good” but identified some big-ticket needs, including mechanical system upgrades, a new roof, hazardous-material abatement, and waterproofing. The report estimated that making the space move-in ready would cost roughly $2.3 million, while a higher-range mixed-use conversion could run as much as $5.3 million, according to a city presentation (City of South St. Paul). Limited parking and those awkward half-levels were flagged as market hurdles, although the study noted the structure may qualify for historic tax credits and new markets tax credits that could help cover the gap. City officials say those cost realities are a key reason they have pursued an adaptive-reuse sale instead of keeping the building in public ownership.
Who’s Behind The Pitch
The project team is led by Corniea and the owners of Minneapolis Gymnastics, a combination that drew praise from the mayor and several council members for keeping community use at the center of the plan. “That’s really what makes this happen, the private-public partnerships that will keep that building in our community, in operation … but back on the tax rolls,” Mayor James Francis said. Council Member Matthew Thompson said he was encouraged to see things moving and hopes the project comes together, according to Finance & Commerce. The development group has not yet shared a detailed timeline or public financing strategy, and city staff say they will review any requests for public assistance if the purchase advances.
Next Steps And What To Watch
Whether the indoor play center becomes reality will depend on the EDA transfer, final development agreements and any decisions about public assistance. Residents are expected to have a chance to weigh in at public hearings, and if approvals and financing come together, officials say reuse work could begin later in 2026. If this plan falls through, the city intends to keep soliciting proposals to ensure the landmark does not sit empty.
