City planning and heritage preservation staff briefed the council on a proposed local historic designation for the Theodore Hamm Brewing Company complex and a connected redevelopment program that would reuse historic buildings and create affordable housing.

Marie Franchetti of the Saint Paul Department of Planning and Economic Development said the redevelopment envisions an East End apartment building with about 110 affordable units (1–3 bedrooms at roughly 30–60% area median income with an average of about 60% AMI) and a West End historic reuse building with about 86 affordable artist loft units (30–70% AMI, average roughly 60% AMI). Franchetti told the council the affordable units would be held affordable for 50 years and that construction is anticipated to start in 2027 contingent in part on an MHFA funding decision in December.

Heritage preservation staff member Christine Bolwer said local historic designation is critical to financing the project because it would allow certification for the National Register of Historic Places and access to federal and state rehabilitation tax credits. Bolwer and Franchetti said the project is expected to leverage approximately $28,000,000 in combined state and federal historic tax credits (staff estimated roughly $15,000,000 in state credits and $13,000,000 in federal credits) and that the West Side historic housing component has an estimated eligible rehab cost of about $91,800,000.

Bolwer explained that local designation would require heritage preservation review for exterior changes that require city permits (examples: signage, rehabilitation, new construction, demolition). She said minor changes are generally administrative reviews by Heritage Preservation Commission staff while larger actions such as demolition or new construction are reviewed by the commission and are appealable to the council.

Council members asked clarifying questions about the tax‑credit numbers, boundaries and an updated district map. Staff said the State Historic Preservation Office sent a supportive letter and recommended a boundary change that would exclude Hope Academy from the proposed district; an amended map and district description were provided to the council.

Council members moved version 2 of the ordinance and laid the matter over for a second reading and public hearing on Oct. 22. The council recorded the motion as approved and the ordinance as laid over for a public hearing on Oct. 22.