Home / Business and Economy / St. Paul Fights Vacancy with $5M Downtown Fund
St. Paul Fights Vacancy with $5M Downtown Fund
13 Apr
Summary
- St. Paul allocated $5 million to boost downtown housing and businesses.
- Downtown St. Paul faces a persistent 30% office vacancy rate.
- A new vintage shop opened, joining 18 businesses in a revitalization program.
The city of St. Paul has committed $5 million to a downtown vitality fund aimed at supporting housing projects and economic development. Mayor Koahly Her emphasized the city's dedication to attracting businesses, enhancing the urban core, and investing in growth-supporting infrastructure. This initiative seeks to address the ongoing challenge of high vacancy rates and lagging development in the downtown area.
Currently, downtown St. Paul's office vacancy rate hovers around 30%, with approximately one in three offices remaining empty. While this number has remained steady over the past year, a healthy market typically sees a vacancy rate of 15%. The "Grow Downtown" initiative, launched in 2022, offers six-month free leases to fill vacant storefronts, aiming to support businesses post-pandemic.
Recently, Forever Young: Vintage, Thrift & Gift became the 19th business to benefit from this program. Owned by brothers Jose and Isaac Garcia, the shop sells vintage clothing and collectables, contributing to the community's vibrancy. The "Grow Downtown" program, supported by the Target Foundation and Wells Fargo Place, acts as a catalyst, providing crucial support for new businesses aiming to establish themselves in the downtown area.
