HRA Meeting – March 4, 2026: Commercial Corridors Guidelines and Downtown Vitality Fund Presentations

The St. Paul Housing and Redevelopment Authority (HRA) met on March 4, 2026, to discuss updates to the Commercial Corridors program guidelines and the new Downtown Vitality Fund (DVF). The meeting included presentations from staff, extensive commissioner discussion, and a commitment to vote on both items at the next meeting. One commissioner was absent (Commissioner Kim); six were present.

Consent Calendar

• Approval of Minutes (MIN 26-10) – The February 2026 HRA meeting minutes were approved unanimously (6-0).

Discussion Items

• Commercial Corridors Program Guideline Updates (SR26-33) – Daniela Lorenz, Economic Development Supervisor, presented proposed changes including: (1) geographic expansions of four corridors (East Seventh Street, Ford Parkway, Como Dale, and Cesar Chavez/Wabasha) and removal of the Smith Corridor; (2) a new award size index using density of businesses, employees, commercial land use, and vacant buildings; (3) replacement of the area-of-concentrated-poverty (ACP) measure with qualified census tracts (QCT); and (4) eligibility for operational subgrants during substantial corridor disruptions (e.g., construction). Commissioners raised concerns and questions:

  • Commissioner Kim noted that business density metrics could disadvantage corridors like Rice Street with many small, immigrant‑owned businesses and questioned the inclusion of HRA‑owned vacant properties in the index.
  • Commissioner Yang expressed strong support for retaining the ACP component, citing the need to uplift marginalized communities, and requested a scenario analysis combining ACP with QCT.
  • Several commissioners (Naker, Johnson, Coleman) discussed the operational expense language, suggesting striking the word "unique" to avoid confusion and ensuring it covers widespread disruptions like Operation Metro Surge.
  • Staff clarified that QCTs measure the same socioeconomic factors as ACPs, and that removal of ACP only affected the Snelling‑Selby corridor. Director McMahon noted that the index was designed to balance current activity with redevelopment potential.

• Downtown Vitality Fund Presentation (SR26-34) – Director McMahon, Housing Director Jules Atanda, and Economic Development Director Jimmy Lloyd presented the $5 million DVF, split into a housing component (~$3M in Laha dollars) and an economic development component (~$2M in Business Assistance Fund dollars). Key points:

  • Housing: Funds for rental or homeownership projects affordable at ≤80% AMI rental or ≤150% AMI homeownership. Rolling application via a short interest form; projects ready to close in 2026 and with greatest unit count prioritized.
  • Economic Development: Eligible uses include capital improvements, equipment purchases, and public realm improvements. For projects ≤$100,000: reimbursement grant; for >$100,000: deferred forgivable loan with 4‑year term. Priority given to projects activating ≥5,000 sq ft of vacant space, with employees in office ≥50% of time, or businesses relocating primary operations downtown.
  • Commissioners raised several issues:
    • Commissioner Naker questioned the rolling application process, preferring application windows to allow competition; staff noted the housing component uses existing Laha processes and that few large projects are expected.
    • Commissioner Bowie emphasized the need to measure success and noted that downtown already receives significant funding (STAR grants, Port Authority, Bush Foundation, legislative tax credits). She preferred restricting DVF to for‑profit businesses to boost the tax base.
    • Commissioner Yang and Chair Johnson questioned whether downtown should still receive $90,000 from the Commercial Corridors program given the new DVF; Chair Johnson suggested a conversation about reallocating that to other corridors.
    • Chair Johnson and Commissioner Naker debated reimbursement vs. upfront grant; staff defended reimbursement as best practice for stewardship.

• Procedural Discussion – Chair Johnson offered to postpone the vote on guideline updates if any commissioner needed more time, while Commissioner Naker strongly preferred to vote the next week (March 11). Chair Johnson asked commissioners to communicate their wish by the end of the meeting day. Director McMahon clarified that the action items next week would be: (1) Commercial Corridors guideline update, and (2) Business Assistance Fund guidelines update (for the DVF economic development component).

Key Outcomes

• The February 2026 HRA minutes were approved (6‑0).
• No formal votes were taken on the Commercial Corridors guideline changes or the Downtown Vitality Fund guidelines; both will be brought back for a vote at the March 11, 2026 HRA meeting.
• Staff will prepare a scenario analysis combining ACP and QCT for Commissioner Yang, and will provide one‑on‑one briefings on the index formula for Commissioners Kim and Yang.
• The operational expense language will be revised per commissioner feedback (e.g., potential removal of "unique").
• The DVF website and interest forms are ready to launch on March 12 if approved.
• Chair Johnson will determine whether to keep both items on the March 11 agenda or postpone based on commissioner input received that day.