Committee lays over request for RDA funds to retrofit former St. Paul Athletic Club for Youthprise programs
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Summary
Senate File 3201 would use Renewable Development Account funds for energy-efficiency and solar-ready work at the former St. Paul Athletic Club, which Youthprise plans to convert into workforce housing, event space and youth-serving facilities. The committee laid the bill over for possible inclusion.
Senate File 32-01, introduced for consideration by Senator Wilbur Batin, would appropriate $4.5 million from the Renewable Development Account to assist Youthprise with energy-efficiency upgrades and solar preparations at the former St. Paul Athletic Club building (340 Cedar Street) in downtown Saint Paul.
Erin Martin, policy and system transformation program director for Youthprise, told the committee the project would repurpose the historic building to provide workforce housing, a community center, event space, and a commercial kitchen to support youth services and workforce programming. Martin said the full project is estimated at about $30 million and that the RDA request is targeted to energy-focused capital work such as roof repairs to enable solar, LED lighting, and engineering and design to reduce long-term operating costs.
Supporters said the retrofit would reduce energy operating costs and allow more revenue to be reinvested in programming and housing subsidies. Brian Smith of Fortis Capital, who is advising the project, said a purchase agreement is in place with the current owner and explained that earlier auctions failed because of outstanding tax and holding-cost liabilities; the project team said those issues have been addressed in negotiations and that the purchase price after adjustments would be in the $1.7 to $1.8 million range. Smith said Youthprise has raised $2.25 million from philanthropy to date and expects additional capital from lenders, community development financial institutions, and grants to complete the full financing package.
Committee members asked for additional details about the financing structure and sources for the overall project. Senator Matthews said she would review the project's capital stack and due diligence before weighing support, noting the size of the RDA request relative to the building's recent market history.
The committee laid Senate File 32-01 over for possible inclusion; the bill will be considered with other RDA requests as part of omnibus budget deliberations.
