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After St. Paul City Council designated $5M to support downtown, where do things stand?

By
Ashley Grams
Ashley Grams
Reporter
Reporter Ashley Grams joined WCCO in the summer of 2025. She's excited to be in Minnesota after spending much of her life on the West Coast.
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Ashley Grams

/ CBS Minnesota

The St. Paul City Council has designated $5 million for a downtown vitality fund, which will support housing projects and economic development.

Mayor Koahly Her said in a statement the city is "working diligently to attract businesses, beautify our urban core, and invest in the infrastructure that supports long-term growth."

It's another effort to revitalize a downtown where development continues to lag and vacancy rates remain high.

Tina Gassman is the President of Greater St. Paul Building Owners and Managers Association (BOMA), and says vacancy rates remain around 30% in the downtown core, saying the city is at a standstill.

"About one out of every three offices is empty," Gassman said. "We're starting to see a little bit momentum. You know, things are starting to climb back up, but it's a slow process."

Gassman said over the past year the vacancy number has remained relatively steady instead of declining further which is positive, adding that typically a 15% vacancy rate reflects a healthy market. Gassman doesn't believe there is a single solution, but instead is advocating for a concerted effort from both the public and private sectors. 

New businesses open with help from "Grow Downtown" initiative

A new business opened in downtown St. Paul on Sunday afternoon called Forever Young: Vintage, Thrift & Gift, with help from the St. Paul Downtown Alliance.

"Kind of was a whoa moment at first," said owner Jose Garcia, sitting alongside his brother Isaac Garcia. 

"It's been enjoyable. I've been seeing smiles on peoples faces," Isaac Garcia said.

The two are 22 and 20 years old, and partnered to sell vintage clothing, collectables, toys and decor. The brothers are hoping to meet the moment, providing some life in the city.

"It's not just about making money or having a store, we're actually trying to be a part of the community and make it a place that can be welcoming," Isaac Garcia said. 

Jose Garcia said he continues to hear from people downtown who want to see more businesses succeed. 

The alliance started an initiative called "Grow Downtown," which provides free six months leases to help fill empty storefronts. The effort started back in 2022 to support businesses after the COVID pandemic. 

Now, Forever Young joins 18 other businesses taking advantage of the program, which the Downtown Alliance says is supported by the Target Foundation and Wells Fargo Place. 

"[This effort] acts as a catalyst to bring on those businesses and help them thrive where it might be difficult otherwise," said Gassman. "Not all of them survive, but some do, and that may just be the push that they need to become a larger, more successful business."

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