The skyline of downtown St. Paul will be seeing big changes alongside the river. The proposed three-phase development was approved for AECOM’s redevelopment of the riverfront site to include four buildings over the 12-acre site. The former West Publishing site has a first phase of two residential towers, including a class A apartment tower, with an estimated cost between $200 and $280 million. The second phase includes office and commercial towers with 250,000 to 400,000 square feet, and a third phase including a large 600,000 to 1 million square foot tower. Estimated completion of the first phase is in 2021, and third phase to be completed by 2026 with a nearly $1 billion project.
Ramsey county spent $17 million on the site over the past 40 years to remove commercial space, which included the former jail location. Following many failed attempts at this site, AECOM is taking on this opportunity. Kellogg Boulevard is a focal point for the project, which would have a terrace within the project, along with a boutique hotel and 250 or more apartment units nearby.
The mixed-use proposal will have construction beginning next year, which will include an estimated 350 apartments, 150 condos, a 250 room hotel in the first phase, an amphitheater, underground parking, and retailers. The location creates a demand for future development.
Brian Dusek, managing principal for real estate development at AECOM, picked this location. “This site is a once in a generation opportunity to revitalize a key location in the St Paul CBD. The project is an optimal mix of uses and users that are essential in activating the newly created open space year-round.” He believes that this site will increase visibility for AECOM not only in the Midwest, but nationally, “This site is that special.” There’s also going to be a large public open space between the buildings. “We are further studying whether the site will include extensions of St Peter and Market Streets onto the site, to include a connection down to Shepard Road.”
Patricia Wolf of Commercial Real Estate Services based in downtown St. Paul notes that “This particular spot has been an interest to developers since the early 90’s. The main issue was previous buildings complicating the site for future projects. The county made it ready and now the opportunity is here.” Wolf explains the importance of space in a modern company’s workplace, “Today’s businesses are looking for something that’s not just a simple office building. They are looking for space that provides an environment to fulfill and inspire their workers, and to retain their talent. Having a space that overlooks and connects to the river does just that.”
The proximity to the Mississippi River is a focal point to this major development. Dusek says “It will give the St Paul skyline a front door to the Mississippi River.” Wolf adds, “The connection and proposal is a positive game-changer. It creates a unique and bold connection to the river that no one else has done in St. Paul. Having a location like this on the riverfront, it will be different. There’s going to be new energy, possibilities, and it will expand and inspire other businesses nearby to expand.”
Some of the hurdles to this project include ownership, easements, and entitlements. Dusek adds that “It is a complex and vertical urban site. Some hurdles include zoning and planning approvals.” The financing will be determined through a due diligence process. AECOM has staff to communicate during the process. “We have dozens of employees involved nationally and in Minnesota. It’s about a half split between local and national.”
Patricia Wolf has a positive outlook on the project, “The housing piece makes sense, with a 4% vacancy rate these units will move. This is very tax base positive, while adding residents to downtown. The view is a major attraction itself.” The hurdles affect this project just as they do for any other development. “Like all projects, it will be dependent on the economy. In an economy like we’ve been experiencing here, I expect it to thrive. Residential will move well, the offices will be more challenging for Phase 2. The location will impact success in a great way.”
