2003 Section 108 Project Summary - Minnesota

Information by State  Print version

Economic Development

Phalen Corridor Revitalization Project
BORROWER: SAINT PAUL
STATE: MN
COMMITMENT AMOUNT: $8,000,000

The City of St. Paul obtained $7,500,000 in Section 108 funds that will help finance two activities of the Phalen Corridor Revitalization Project-the Westminster Junction Business Center and the Railroad Island housing activity. The Westminster Junction Business Center activity will develop a new business center that is expected to create 123 new jobs, principally for low- and moderate-income persons. The Port Authority will sell individual parcels to manufacturing enterprises. The Port Authority will own some of the common areas and will manage the business center. The Railroad Island housing will be constructed by a Community Based Development Organization (CBDO), Dayton's Bluff Neighborhood Housing Services, Inc. (DBNHS). The project will develop 163 units for low- and moderate-income households. The housing is within walking distance of the new jobs to be created in the Business Center, and it is anticipated that some of the housing will be occupied by Business Center employees. The project will develop a wide range of housing types (from cottage homes to townhomes) for a wide range of purchasers (from seniors to young families) at a wide range of prices (from $130,000 to $250,000). The City will repay the Section 108 funds using the proceeds from the sale of the housing. Section 108 assistance is in conjunction with HUD's Brownfields Economic Development (BEDI) grant in the amount of $2,000,000. The total project cost is estimated at $67 million.