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Finance and Commerce
Former West St. Paul YMCA site up for major redevelopment
By Brian Johnson,
5 days ago
West St. Paul may be poised for another growth spurt as plans are in motion for a project that could bring hundreds of new housing units and public spaces to a city-owned redevelopment site along Thompson Avenue near the Robert Street corridor.
Greco Properties and Swervo Development want to redevelop the now-vacant former YMCA property at 150 Thompson Ave. E. and adjacent city-owned properties with more than 400 units of market-rate apartments, 27 townhomes, a restaurant, and public amenities, according to the city.
Ben Boike, West St. Paul’s community development director, said in an email Wednesday that the proposed public spaces include an “activated plaza, stage/turf area, pond overlook, water play feature, playground, etc., all tying into the county’s regional trail system.”
The developers, who are requesting tax increment financing from the city, are working on the environmental assessment review process and civil/architectural planning for the proposed redevelopment, and anticipate submitting a formal application to the city in late 2024 or early 2025, Boike said.
“The city has been working on the visioning for the public space since 2022 and has a strong desire to create a unique central gathering space for the community,” Boike said. “We are really excited about this project, which is anticipated to start construction next year.”
Redevelopment plans have come and gone since the YMCA closed the Thompson Avenue location nearly five years ago.
In 2019, Hy-Vee Inc. paid $3.8 million for the West St. Paul YMCA building, which has since been demolished, and its 9.58-acre site. But the Iowa-based company never followed through with its plans to build a new grocery store there.
Boike said the city purchased the property from Hy-Vee in late 2022.
West St. Paul has seen its share of new housing. In the past five years, the city has approved roughly 1,000 new multifamily units, including family affordable, senior affordable, and market-rate products, Boike said.
Recent projects include a major redevelopment from Dominium.
Finance & Commerce reported in early 2021 that the Plymouth-based affordable housing developer closed on a land sale related to its $124 million plan to build 247 affordable senior apartments and 146 units of workforce housing on a former Kmart property in West St. Paul.
M/I Homes wants to build 44 market-rate townhome units on an existing church site at 1530 and 1540 Oakdale Ave. The project will go before the Planning Commission on July 16, followed by City Council review on July 22. (Staff photo: Brian Johnson)
West St. Paul Leased Housing Associates, an entity related to Dominium, paid $4.54 million for the redevelopment site, which includes properties at 1201 Robert St. S., 1201 Robert St. S. #50, and 100 Signal Hills Ave., as previously reported.
The Dominium project is now complete, Boike said.
Matt Mullins, a vice president with local multifamily housing consultancy Maxfield Research, said the Robert Street corridor has seen strong redevelopment activity over the past three to five years, bringing an abundance of new multifamily product to the market.
As it stands today, he said, West St Paul has one of the highest apartment vacancy rates in the Twin Cities because the market is still absorbing the new supply. But projects delivered in 2026 or 2027 might be well-positioned to meet the demand for housing, he said.
“It’s a little bit soft right now. Eventually it will level out those as projects are filled up,” Mullins said.
Multifamily construction overall has been down sharply this year. Through June, cities in the 13-county metro area have permitted 1,619 new multifamily units, down 38% from the first half of 2023, according to the Keystone Report.
“It’s still pretty tight right now. Lenders are not loosening the reins by any means yet,” Mullins said.
The YMCA redevelopment isn’t the only project on West St. Paul’s radar.
Elsewhere in the city, M/I Homes wants to build 44 market-rate townhome units on an existing church site at 1530 and 1540 Oakdale Ave. The project will go before the Planning Commission on July 16, followed by City Council review on July 22.
M/I Homes is finishing up a similar development on the other side of Oakdale Avenue and that project has “performed very well in terms of sales,” Boike said.
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