Summary of the Article: St. Paul Downtown Development Corporation (SPDDC) and U.S. Bank Center
This article details the SPDDC’s recent actions regarding struggling downtown St.Paul properties, particularly the U.S. Bank Center. Here’s a breakdown of the key points:
* SPDDC’s Role: The SPDDC, a nonprofit funded by private investors (who remain unnamed), is acting as a lender to Madison Equities, the current owner of the U.S. Bank Center. They’ve acquired mortgages on several distressed properties in downtown St. paul.
* U.S. Bank Center Conversion: The SPDDC is considering converting the U.S. Bank Center into apartments. Initial studies (by Gensler) suggest it’s a strong candidate for residential conversion, despite structural and plumbing challenges. The entire block is burdened by debt, and a new owner would acquire the whole thing.
* Tax Implications:
* U.S.Bank Center: Remains on the tax rolls, and Madison Equities is currently responsible for the $2.6 million in delinquent property taxes. The SPDDC, as the lender, isn’t liable for these taxes.
* SPDDC-Owned Properties: Properties owned outright by the SPDDC (Alliance Bank, Capital City Plaza, Empire Building, Endicott Arcade) are seeking or have received tax-exempt status. Alliance Bank is already tax-exempt starting in 2026.The status of the others is pending.
* Tax Forfeiture: If U.S. Bank center falls into tax forfeiture,the SPDDC might be first in line to acquire it,but this depends on a decision by the county and potential consultation with the SPDDC to explore alternatives. This process could take years.
* Funding & Transparency: The SPDDC is not disclosing its investors.
In essence, the SPDDC is attempting to stabilize downtown St. Paul by acquiring debt on struggling properties and exploring redevelopment options, with a focus on potentially converting office space into residential units. A key aspect is navigating the complex tax implications of nonprofit ownership and potential tax forfeiture.
