HRA staff recommend Flaherty & Collins as tentative developer for Central Station block

HRA staff on Feb. 13 introduced a recommendation to name Flaherty & Collins as the tentative developer for the Central Station block in downtown Saint Paul. The commission discussed conceptual plans and next steps; the formal vote to authorize tentative-developer status is scheduled for next week.

Principal project manager Jonathan Reester described the site history and procurement process, noting joint ownership of parcels by the Met Council and the HRA and the technical constraints posed by the light rail diagonally bisecting the site. Reester summarized the development team’s proposal from Flaherty & Collins: two buildings — a conceptual 20-story tower and a six-story building connected over the light rail by a skyway — totaling roughly 370,000 square feet and about 300 market-rate residential units, plus about 10,000 square feet of ground-floor commercial space. He said the estimated total development cost is roughly $130,000,000 and that renderings shown were conceptual and subject to change.

A representative from Flaherty & Collins said the firm is experienced in public-private partnerships and long-term ownership of projects, noting its prior work in the Twin Cities market. The developer representative affirmed the proposal remains conceptual and highlighted logistical challenges of building over an active light-rail line and designing the streetscape and station interface.

Commissioners welcomed the development team and acknowledged this is an early step: the HRA must name a tentative developer to allow the team to complete due diligence and secure financing. Director Newton and staff emphasized that the tentative designation does not finalize design or funding and that the project will proceed through milestone dates and additional approvals; Metro Transit and the Met Council will also review the proposal. Staff said the HRA’s action next week will be a vote to authorize tentative-developer status, after which Metro Transit will consider related committee and board actions on Feb. 24 and March 12.

Commissioners raised questions about the mix of market-rate and affordable units. The development team said underwriting to date assumed 100% market-rate units, and any affordable housing content would be discussed and negotiated during subsequent phases; staff flagged that adding affordability typically increases subsidy needs. Commissioners also asked for copies of the joint-powers agreement and other project materials; staff said the JPA would be provided to commissioners for review.

No final approvals were given at the Feb. 13 meeting; staff will return with the tentative-developer resolution for a formal vote next week and continue project negotiations thereafter.