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Council approves $2M TIF for Grand & Victoria redevelopment despite public opposition
Summary
After a contested public hearing with residents and fiscal watchdogs warning TIFs raise property taxes, the City Council approved a redevelopment plan and $2 million TIF package for the Grand and Victoria project in a 5–1 vote. Opponents said the corridor is not blighted and taxpayers should not subsidize the developer; proponents said TIF is needed to catalyze investment.
The St. Paul City Council voted Dec. 17 to approve a redevelopment plan and a tax increment financing (TIF) package for the Grand and Victoria project, authorizing a pay‑as‑you‑go TIF of approximately $2 million to help finance building rehabilitation in the corridor.
During the public hearing, members of Insight Saint Paul and local residents urged the council to deny the TIF. "It has been overused and costly to taxpayers," said Bob Meschewski, citing the organization’s analysis and urging the council to require a stronger public purpose for subsidies. Barbara Sibley questioned whether the "but‑for" test had been demonstrated and noted she expected more detailed documentation in the project packet.
Developer Ari Perritz, representing Affton Park Development, acknowledged the criticisms but said the parcel’s buildings are blighted and the project would generate new tax revenue in the future. "The property today generates around $200,000 in revenue to the taxing districts; those dollars remain if development proceeds," he said, adding the site’s buildings are in need of substantial renovation and that TIF would catalyze needed investment.
Council discussion acknowledged the tension between limiting TIF and attracting development. Councilmember Buie said she opposed the measure because of principles about prioritizing subsidies for deeply affordable housing and concern about TIF’s burden on taxpayers. Council President Nager and others said the council’s TIF policy imposes a 10% cap and that third‑party analysis supported a "but‑for" finding for this project.
The roll‑call vote was 5 in favor and 1 opposed (Councilmember Buie). After adopting the measure, the council temporarily adjourned as the HRA to complete related actions and reconvened as the city council.
