St. Paul is quietly lining up a half-block stretch on University Avenue, buying an empty commercial building and pairing it with adjacent city-owned parcels in hopes of finally drawing larger housing and mixed-use projects to a corridor that has seen little new construction for years. The idea is to reshape how developers view the market by offering a single, build-ready site instead of a patchwork of small lots.
According to Star Tribune, the city plans to pay $600,000 for the building at 259 University Ave W and combine it with a group of parcels the Housing and Redevelopment Authority has owned since the mid-2000s. The site sits near the corner of University and Galtier, and the paper reports that two neighboring office buildings share a wall, a structural complication officials say makes piecemeal teardown impractical and helped spark the buy-and-assemble move.
What the city proposes
City filings and a draft environmental review show the HRA plans to demolish the existing structure after closing, then sell the larger, consolidated lot to a developer through a request-for-proposals process. As outlined by the City of Saint Paul, staff put a rough value on the building at about $625,000 and estimate demolition costs between $30,000 and $100,000, framing the acquisition as a way to encourage apartments and other projects along the Green Line corridor.
Leaders frame it as a signal to developers
“There’s so much opportunity on this corner of the corridor,” Daniela Lorenz of the city’s planning and economic development department told the paper, arguing that a larger single site could change developers’ calculus. Councilmember Anika Bowie added that the neighborhood could get “more of the density it deserves,” comments published by the Star Tribune.
Momentum is building, but obstacles remain
City officials point to projects near Allianz Field and other Green Line investments as evidence that University Avenue can attract development, but vacancy, design approvals and rising financing costs continue to slow change. Coverage of the nearby United Village redevelopment and its design debates shows private capital facing typical zoning and construction hurdles, according to local outlet Hoodline’s plan for fewer windows story, underscoring that the buy-and-assemble tactic is only one tool in a longer effort to revitalize the avenue.
What’s next
The acquisition was introduced to the HRA in early June and will need formal approvals before the site can be offered to developers. Once cleared, staff expect to run an RFP to select a developer and project. That sequence of acquisition, demolition, RFP and selection means actual construction could still be many months away and will depend on market and financing conditions. Per the HRA meeting agenda from the City of Saint Paul, the item was introduced at the June meeting and remains subject to the board’s action.
