St. Paul HRA approves up to $70,000 to help Alliance Bank building tenants move downtown

The St. Paul City Housing and Redevelopment Authority voted to authorize up to $70,000 from its Business Assistance Fund to help tenants of the Alliance Bank building at 55 East Fifth Street with emergency moving and build-out costs.

The resolution (25-500) passed unanimously by the five commissioners present after staff requested waivers of existing fund rules to allow grants, rather than loans, of up to $5,000 per tenant and to make nonprofits eligible for assistance.

Director Newton, speaking for staff, said Madison Equities notified tenants on March 10 that they would need to vacate within 48 hours and that utilities and security would be discontinued. Newton said the mayor’s office and city staff secured an extension of basic services through March 31, but many of the building’s 14 tenants—mostly small businesses concentrated on the skyway level—faced urgent moving and tenant-improvement costs. “What we determined was a business assistance fund is a possible source of funds to help these tenants as they seek new spaces,” Director Newton said.

Under the approved action, the city will waive several current Business Assistance Fund guidelines for this emergency use: the requirement that awards be loans, the 10% equity requirement, and the restriction limiting eligibility to for-profit businesses. The HRA will set a $5,000 maximum award per tenant, require a letter of intent or a lease in St. Paul and invoices to document expenses, and ask applicants to submit claims and receipts by June 30. Newton said any unused portion of the $70,000 would return to the Business Assistance Fund.

Commissioner Kim made the motion to approve; a second was not recorded in the transcript. Commissioner Kim also voiced support for the waiver during discussion. Chair Johnson called the vote: all present voted in favor, with Commissioner Rebecca Naker excused.

Staff said next steps will include working with the City Attorney’s Office to draft grant agreements for individual tenants, communicating requirements to tenants, and creating tracking materials for the HRA fund. Newton said the HRA has roughly $150,000 in the Business Assistance Fund for the year and characterized this request as an emergency use of a portion of that fund.

The action preserves downtown and St. Paul commercial activity by helping small tenants absorb unplanned relocation costs, staff said. If the HRA does not disburse the full $70,000 for this purpose by the June 30 deadline, the money will revert to the fund for future uses.