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MN Legislature: Xcel Energy Center shut out of bond funding for renovations
MN Legislature: Xcel Energy Center shut out of bond funding for renovations

Yahoo

time11-06-2025

  • Business
  • Yahoo

MN Legislature: Xcel Energy Center shut out of bond funding for renovations

For the second year in a row, the Xcel Energy Center came out of the legislative session with nothing — a frustrating shut-out for both the Minnesota Wild and the St. Paul mayor's office. Since at least the fall of 2023, St. Paul Mayor Melvin Carter and Minnesota Wild owner Craig Leipold have discussed a sweeping remodel of the downtown Xcel Energy Center, the popular home of professional hockey in Minnesota, which also doubles as a celebrated concert hall. Efforts to secure $2 million in planning and pre-design funds from state lawmakers were unsuccessful last year, and a much larger ask this March — about $395 million in state appropriations bonds — drew skepticism from key lawmakers, including state Rep. Maria Isa Perez-Vega, who represents the district. Some lawmakers called the process unwieldly from start to finish, and questioned why the city requested the money in 2023, when a nearly $18 billion state budget surplus loomed large. The surplus is projected to dwindle to a shortfall by 2028-2029. The Xcel Energy Center remodel was the city's priority legislative request, topping an expansive list of proposals that was not approved by the St. Paul City Council until March 26, or more than halfway through the legislative session. Even some supporters called the request large, late and messy. 'All of the above,' said state Sen. Sandy Pappas, DFL-St. Paul, who chairs the Senate Capital Investment Committee, on Wednesday. 'We had a (projected budget) deficit this year. We just don't have a Legislature right now that is very supportive of sports arenas.' Pappas said she was willing to carry a bill that would extend the city's existing half-cent sales tax — which currently funds St. Paul's Neighborhood STAR and Cultural STAR grant programs, as well as basic maintenance at the X — to pay for some of the proposed arena improvements. To her knowledge, the proposal never found a House sponsor. Perez-Vega, a logical partner, was not on board. 'Their government relations, Craig Leipold, nor Melvin Carter, they never came to me about their sales tax incentive,' said Perez-Vega on Wednesday. 'The first I heard of that was while it was in conference committee through the Senate file that Pappas was carrying. … It was just a little too sloppy. There was no direct communication of how all this would work.' Perez-Vega said Leipold later approached her apologetically, saying he was unaware that she had not been roped into the process. Still, she hopes to see the Wild more present and active in the communities she represents. 'Why don't they bring the Wild into some of these spaces where the youth are, particularly our communities of color?' she said. 'I see the Saints, I see the Twins, I see the Minnesota United. I want these ties.' Meanwhile, competition for bond funds came from water and transportation infrastructure projects, including $16 million to the Metropolitan Council for an inflow and infiltration public infrastructure grant program, and $12 million to the Minnesota Pollution Control Agency, half of which will support statewide grants aimed at addressing drinking water contamination. 'We had a small, $700 million bonding bill we didn't even know if we were going to get passed. And the governor had big asks,' Pappas said. 'He wanted a new Bureau of Criminal Apprehension building in Mankato. He wanted a new building for State Patrol. … He wanted 45% of the bonding bill to be asset preservation for the state buildings and higher ed.' When Carter and Leipold presented their initial funding ask for the X to the House Capital Investment Committee on March 20, it was little more than a concept plan, as they had yet to secure a bill sponsor. Perez-Vega, who had carried the bill for $2 million in planning and design funds a year earlier, objected at the time to being surprised with such a large request in the 'front yard of my community.' 'If this is the number one priority for the city that I love … I'd like to see more effort to deliver this information to my office,' Perez-Vega said at the time, after listing a long line of competing St. Paul priorities, from homelessness to climate concerns, where tax dollars could be spent. In early May, Carter and Leipold presented a new plan to lawmakers. The $769 million remodel of the Xcel Center would be pared down to a $488 million upgrade, freezing proposed improvements to the adjoining RiverCentre convention center complex and the Roy Wilkins Auditorium until an unspecified later date. The funding request to lawmakers dropped from nearly $400 million in state bond funds to $50 million, with the team promising $238 million and any cost overruns. The city and potential partners, such as Ramsey County, would be on the hook for $200 million, though county officials at the time seemed non-committal. Leipold said at the time the goal was to create a 'modern, best-in-class' facility that keeps up with changing tastes of sports fans, with low-cost, lounge-style seating areas and other fresh amenities. Even in the plan's trimmer version, the state's contribution would have helped expand the north wall along Fifth Street to improve the northeast entrance security area, increase disability access, update restroom plumbing and reduce pedestrian congestion. Calling the fate of downtown and the X closely linked, Carter wanted to see public-facing improvements that would better connect the arena to Seventh Street, Rice Park and the Landmark Center, creating a continuous entertainment district. Under the title 'Project Wow,' the Wild attempted to draw the U.S. Hockey Hall of Fame from Eveleth, Minn. to downtown St. Paul, an effort that drew mixed reaction from lawmakers. The Xcel Energy Center, which opened in 2000, welcomed a million visitors to Wild and Frost hockey games, concerts, performances and other gatherings in the first three months of this year alone. The arena complex draws more than 2.1 million visitors and $383 million in spending annually, according to the city. Pappas said she had been able to convince the city to stick to asking for appropriations bonds, which lawmakers consider and fund separately from general obligation bonds. In 2012, Gov. Mark Dayton linked funding for construction of U.S. Bank Stadium in Minneapolis, the home of the Minnesota Vikings, to electronic pull-tabs. 'The best path forward for the Xcel is appropriations bonds, with some kind of new funding source to pay off the debt,' Pappas said Wednesday. 'I don't know what that would be.' 'It would have been easier to consider this request in 2023, because we had that big surplus, and we had one-time money,' she added. 'We have a lot of sports arenas that could be coming to the state for money, and I just don't think legislators want to go there.' Concert review: Maynard James Keenan and pals celebrate his 61st birthday at the X Frost championship celebration livens up Xcel Energy Center Evanescence will headline the 93X Family Reunion concert at Xcel Energy Center Rising pop star Benson Boone to kick off his first arena tour in St. Paul St. Paul, MN Wild trim Xcel Center's state request from $400M to $50M

Minnesota cities target crypto ATMs
Minnesota cities target crypto ATMs

Axios

time19-05-2025

  • Business
  • Axios

Minnesota cities target crypto ATMs

Several Minnesota cities are considering crackdowns on cryptocurrency ATMs, saying they've become preferred tools for scammers. Why it matters: Fraud at crypto kiosks has skyrocketed in recent years. In more than 5,500 cases nationwide, victims lost over $189 million to schemes involving a crypto ATM in 2023, according to the FBI. City officials say regulations are necessary to spare police resources from the difficult task of solving these crimes: The digital transactions are hard to trace, and victims rarely get full refunds. State of play: Stillwater leaders banned the kiosks last month, and the St. Paul City Council met to discuss its own possible regulations last week. Forest Lake has enacted an ordinance that stops short of a ban, but requires all crypto ATMs to be registered — and would shut down any kiosk that fraudsters use more than once in six months. Plus: Officials in Hastings, Cottage Grove and Woodbury have also considered their own rules, according to news reports. How it works: Crypto kiosks allow users to buy online currencies like Bitcoin, Ethereum or Litecoin with cash. There are more than 200 crypto ATMs from companies like Bitcoin Depot, Coinflip and Athena in Twin Cities grocers, gas stations and liquor stores. Threat level: FBI data suggest seniors are at greatest risk. People over 60 lost nearly two-thirds of the money reported stolen at crypto ATMs in 2023. Case in point: One Maple Grove man's case is typical: A phone scammer convinced the senior to withdraw more than $22,000 in cash from his bank and send it to the scammer through a Bitcoin ATM, KARE11 reported last year. Friction point: A new state law sets transaction limits at kiosks for newly registered customers, but scammers easily avoid this obstacle by sending their victim a QR code that links their deposit to an existing account, state and local enforcement officials say. Between the lines: The crypto ATM era has probably passed, Axios Crypto 's Brady Dale says. The kiosks were once useful when the currencies were harder to buy. Now, most traders are using online marketplaces, which have lower transaction fees. Most kiosks only allow cash deposits and not withdrawals — "which makes these things absolutely useless," Stillwater Mayor Ted Kozlowski told a St. Paul council hearing last week. What they're saying: The kiosks' limited use case has led Stillwater Police Chief Brian Mueller to conclude they're "purely predatory." The other side: Kiosk company Athena Bitcoin "regularly works with law enforcement agencies and is genuinely committed to fighting financial crimes, especially those targeting the elderly population," attorney Robert Musiala told Stillwater officials in a letter, according to the Pioneer Press.

St. Paul: At Highland Bridge, Weidner Homes, Ryan Cos. win concessions
St. Paul: At Highland Bridge, Weidner Homes, Ryan Cos. win concessions

Yahoo

time15-05-2025

  • Business
  • Yahoo

St. Paul: At Highland Bridge, Weidner Homes, Ryan Cos. win concessions

Eager to jumpstart 450 residential units and a series of commercial buildings on long-stalled development parcels at Highland Bridge, the St. Paul City Council voted 5-2 on Wednesday to amend a longstanding tax incentive district, delaying construction of some internal sidewalks and landscaping for up to five years. The amendments — the sixth to the former Ford Motor Co. site's $275 million tax increment financing district since 2016 — do not alter the total spending planned within the TIF district, but they do alter payment schedules. A new 'minimum assessments agreement' shifts some TIF payments from interest to principal and saves the master developer, the Ryan Cos., some costs upfront as the taxable value of particular land parcels are lowered. 'This does not impact the city budget or the general fund,' said Council Member Saura Jost, addressing the city council on Wednesday. 'This reduces the holding cost to the developer, enabling it to move forward as foreseen in the master plan. … We're not changing the public investment at the site.' Getting county assessors to agree to drop land values took a joint effort from both the city and the Ryan Cos. At Highland Bridge, Weidner Apartment Homes now plan construction of two market-rate apartment buildings spanning 350 housing units in the near future. Nearby, the Ryan Cos. had once planned to have started work on a series of commercial or mixed-use buildings on the parcel known as 'Block 2' back in 2021. Neither project has moved forward in recent years, with both developers blaming the city's rent control policies for adding to an already-complicated financing landscape weighed down by high interest rates, rising construction costs and other barriers. The Ryan Cos. have since redrawn their plans for four one-story commercial buildings, as well as a four-story, mixed-use residential building consisting of 97 market-rate rental units attached to ground-floor commercial space, a rooftop deck, streetscape improvements and a public promenade. Also planned is a 190-stall structured parking facility. 'You would see immediate development at this site,' said Maureen Michalski, a regional senior vice president of development with the Ryan Cos., referring to the TIF agreement. So far, the developer has secured a letter of intent for a daycare to operate in one of the stand-alone commercial buildings. Both Council Members HwaJeong Kim and Nelsie Yang voted against the new TIF arrangement and the related agreements. While 20% of Highland Bridge is set up for affordable housing through a master plan, Yang expressed concern Wednesday that there was little clarity about the specific rents planned in the new residential buildings. The overall number of residential units planned for Highland Bridge has been redrawn at 3,100 units, down from an initial projection of 3,800 units, according to city staff. Rents at an existing market-rate development — The Collection at Highland Bridge — average about $2,000 per unit, according to a spokesperson for Weidner Apartment Homes, who said he expected the new construction to proceed along the same grounds. 'Is this truly the biggest win that we can get for the city of St. Paul at the negotiation table?' said Yang, noting that Ramsey County had delayed a vote this week on the new minimum assessments agreement. 'I don't know what an alternative agreement could have looked like. … Also, where is the county on this, too? This is something that is going to be impacting them.' With Weidner refusing to move forward until the company was released from rent control obligations, the city council voted 4-3 last week to relieve all buildings citywide built after 2004 from the city's voter-approved 3% cap on annual rent increases. Council Member Cheniqua Johnson, who chairs the city's Housing and Redevelopment Authority, said Wednesday she was excited to see new housing move forward, though she was disappointed with Weidner's lack of communication with her office, as well as with the city in general, prior to the council vote on the rent control amendment. 'I want to add you to that discussion,' said Johnson, addressing Weidner development director Nick Nowotarski, who promised better days ahead. 'That was the first time I had ever met you.' Added Council President Rebecca Noecker, 'I have been on this council for 10 years, and I've never had any contact with Weidner. … It matters to have you show up, and it matters to have this communication.' The Ryan Cos. now hope to build the stand-alone commercial structures and the mixed-use building on Blocks 2 using both a public business subsidy and some $24 million in additional loan principal, supported by tax increment financing through a pay-as-you-go note. 'TIF' tax incentives allow private developers to complete public-facing aspects of their developments using money that would ordinarily pay off city, county and school district tax obligations. The city's Housing and Redevelopment Authority hired the tax firm Baker Tilly as a fiscal consultant to evaluate project costs, financing and operations and confirm the need for TIF to move the Ryan Cos.' Block 2 project forward. A fresh agreement involves lower new tax values for the buildable land. The original 'minimum assessments agreement … places a tax burden on the properties without an offsetting income source,' reads the city staff report. 'Both the city and the developer have incurred debt to advance the infrastructure and have carefully evaluated adjustments to the minimum values to entice the stalled development to proceed.' 'We have worked with the assessor, who is supportive of adjustments to certain lots,' the report states. 'The resulting … amendment will reduce values for the certain lots in the short term.' The lot values will exceed the original values in 2041 and continue to increase through the year 2047, the final year of the TIF district. Separately, the Weidner agreement will require the construction of two buildings resulting in approximately 350 housing units over the next few years, as well as pre-payment to the city of all of their 'Green Infrastructure' assessments. Jost noted that form of binding development agreement was not in place previously. The two developers have agreed not to apply for additional city or Housing and Redevelopment Authority funds on land they own for any future 'vertical development' at Highland Bridge. 'Highland Bridge is important to Ward 3,' Jost told the council Wednesday. 'It's important to the whole city. … Our city will see one of its vacant spaces replaced with something of purpose. … We're expanding the housing options available to our residents in Highland.'

St. Paul walks back rent control
St. Paul walks back rent control

Yahoo

time08-05-2025

  • Business
  • Yahoo

St. Paul walks back rent control

Renters and activists urged the St. Paul City Council not to exempt affordable housing from the city's rent control policy during a public hearing on Aug. 24, 2022. Photo by Max Nesterak/Minnesota Reformer. New — and new-ish — rental properties in St. Paul will no longer be subject to the city's 3% cap on yearly rent increases. The St. Paul City Council, at the behest of Mayor Melvin Carter, voted 4-3 Wednesday to permanently exempt new construction and rentals built after 2004 from the rent control ordinance, which voters approved by ballot measure in 2021. While increased interest rates and slower growth in rents reduced homebuilding across the country in recent years, local developers have pointed the finger at St. Paul's rent control ordinance as a major factor in their reluctance to build in the city. Since the council first implemented the ordinance in 2022, construction has dropped off a cliff in the city; In 2024, 80% fewer housing units were built in St. Paul compared to the previous three-year average, according to a MinnPost analysis. (In Minneapolis, voters gave the city council power to enact rent control in 2021, but the council has not passed a rent control ordinance. Minneapolis had an even steeper falloff in construction in 2024 than St. Paul.) St. Paul's rollback of the ordinance is a bad sign for rent control advocates in Minneapolis, who have pushed the council to implement rent stabilization in recent years. Prior to Wednesday's vote, the St. Paul City Council weakened the rent control ordinance in other ways: In 2022, the council permanently exempted affordable housing developments; gave new construction a 20-year exemption, and instituted 'vacancy decontrol,' which allows landlords to raise rents by more than 3% when a tenant moves out. Landlords could also request permission from the city to raise rents by more than 3% if their expenses rose significantly; St. Paul approved the vast majority of those requests. Minnesota is one of the only Midwestern states without a statewide ban on local rent control ordinances.

St. Paul's rent control policy faces another rollback
St. Paul's rent control policy faces another rollback

Axios

time06-05-2025

  • Business
  • Axios

St. Paul's rent control policy faces another rollback

The St. Paul City Council is poised to walk back another part of the city's rent control ordinance this week. Why it matters: The vote is the culmination of a months-long push by Mayor Melvin Carter to exempt new construction from the rent caps permanently. Supporters have argued the move is necessary to jump-start housing construction in St. Paul — which has stalled since voters passed the ordinance in 2021 — without ditching rent control altogether. The big picture: The proposal represents a big bet on a minor change to a policy whose current iteration has critics in many corners. Developers don't like it, and even many rent control advocates have argued St. Paul's policy is a watered-down version of what voters initially demanded. Catch up quick: The policy voters approved capped annual rent increases at 3%, with few exceptions — until Carter and the council loosened the rules in 2022. As a result, new construction is now exempt from rent control for 20 years, and landlords can enact much larger rent increases after a tenant moves out. The latest: The proposal before the council this week would be another relaxation, permanently exempting any new housing built in 2005 or later. Rent control critics say it's an easy way for the city to make a bad policy more workable. What they're saying:"What we've done in St. Paul is create the worst of both worlds," Nate Hood, a city Planning Commission member and small-time landlord, told Axios. "Rent control scares people, so developers just stay away from the city," Hood said. "At the same time, we haven't necessarily protected tenants because there are loopholes that some people could probably drive a semi through." The other side: Rent control advocates share some of Hood's frustrations but say the solution is to strengthen rent regulations, not weaken them further. "City officials in St. Paul seem more focused on managing the pushback of wealthy developers and special interests, and not on implementing a strong policy," Elianne Farhat, co-executive director of advocacy group TakeAction Minnesota, told Axios. With better enforcement and strategy from city leaders, "we wouldn't necessarily be experiencing the 'worst of both worlds,'" added Tram Hoang, who managed the 2021 rent control campaign. Carter says that if the new proposal passes, rent control will cover more than 90% of St. Paul's rental units. Stunning stats: Builders pulled permits for 404 housing units in St. Paul, down 80% from the 2,077 units permitted in 2020, according to federal data. Reality check: Rent control isn't the only cause of this slowdown in St. Paul. Building has sagged nationwide as developers contend with supply chain issues, labor shortages and difficulty securing loans. Minneapolis, which doesn't have rent control, saw a 90% drop from its pre-COVID-19 development peak, and metro-wide construction is down too. "The real estate industry is scapegoating rent stabilization and using this time of economic uncertainty … to force the council into making a false choice," said Hoang, now an analyst at think tank PolicyLink. Yes, but: Rent control critics fear that without further changes to St. Paul's rent control policy, developers will bypass opportunities to build in St. Paul whenever economic conditions rebound. St. Paul's typical rents have grown at a pace similar to — if not slightly faster than — that of Minneapolis in recent years, according to Zillow estimates. Zoom in: One reason is that St. Paul's ordinance gives landlords several options to raise rents more than the 3% annual cap. By the numbers: Since the ordinance took effect in 2023, more than 1,700 landlords have applied to raise rents on vacant units by as much as 8%, plus inflation. The city granted 1,580 requests in 2023 and 2024, the city's Department of Safety and Inspections tells Axios. Another 111 applications have been granted to landlords seeking to exceed the rent cap to cover repairs or certain cost increases — like, in Hood's case, insurance.

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