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Saint Paul Port Authority seeks modest levy increase as Heights redevelopment advances

Saint Paul City Council - Pre-Council Budget Presentations · November 13, 2024
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Summary

The Port Authority presented its 2025 budget and an update on The Heights redevelopment, asking the city for a $125,000 levy increase to fund one additional development staffer while reporting continuing construction and a $44.6 million state funding request for housing at The Heights.

The Saint Paul Port Authority told the City Council it is asking for a $125,000 increase in the property tax levy included in the mayor's 2025 budget to add one full‑time development staff position and support ongoing projects, including the multiyear Heights redevelopment.

"The mission of the Saint Paul Port Authority is to expand the tax base in the City of Saint Paul and serve as a conduit to quality jobs," Port Authority President and CEO Todd Hurley said, summarizing the agency's goals of economic development, job creation, sustainability and river commerce advocacy.

Catherine Czarnecki, the Port Authority's chief development officer, described the working river and the scope of operations at the city's four river terminals. She said the port handles roughly 5 million to 8 million tons of cargo annually, with about 21 businesses operating in the terminals that generate about $2.3 million in annual tax revenue and more than 700 jobs.

Czarnecki gave an update on The Heights, the authority's largest redevelopment. She said the project spans roughly 24 acres and is planned to include a mix of ownership and rental housing that the Port has long targeted at roughly 1,000 housing units and substantial job creation. She identified partners including Sherman Associates, JO Companies, Twin Cities Habitat and Habitat for Humanity, and said the partnership is pursuing a $44.6 million state funding request to help realize the housing component.

"There is construction going on at The Heights," Czarnecki said, noting Habitat for Humanity had started work on single‑family units and that utilities and grading are underway. She said project timing for completing infrastructure depends on securing remaining funding; amenity work may extend into 2026 depending on financing.

On the Port Authority's finances, Mike Solomon, the authority's chief financial officer, said the proposed 2025 budget shows total revenues just over $7.1 million. He said about 30% of the operating budget is expected to come from property taxes and roughly 70% from other port revenues, and that the requested $125,000 levy increase pays for an additional FTE on the development team to support river infrastructure projects and post‑Heights work.

Council members asked for more detail on the composition of the Port's non‑tax revenues and the planned duties for the new position. Solomon said non‑tax revenues include loan servicing and issuance fees, development fees and interest from port loan programs.

The Port Authority's presentation made no formal motions before the council; the session was an informational budget briefing to help the city finalize its 2025 budget.

Next steps: the Port Authority's levy request and the city's overall budget will be finalized through the mayor's budget process and subsequent council deliberations.