Council backs Division Street Apartments rehabilitation; owner pledges tenant protections

The North St. Paul City Council adopted a resolution supporting a developer'led application to Ramsey County to rehabilitate the 21-unit Division Street Apartments, city staff said.

Ken Roberts, the city's community development director, presented the request and said the city'endorsing resolution asks Ramsey County to consider the project for available local and state affordable housing pots. "Staff has found this proposal to rehabilitate and renovate this property is in the public interest of North St. Paul residents," Roberts said.

The prospective owner, identified in the packet as Mr. Ruby of 612651 Properties, addressed the council and outlined a plan to invest more than $200,000 primarily in interior mechanical systems, parking-lot improvements and unit upgrades. "We will renovate those units while not displacing the residents," Mr. Ruby said, describing a phased approach that would renovate vacant units first and allow existing tenants to move into upgraded units without a rent increase.

Ruby said the plan envisions keeping four units rented at no more than 30% of area median income (AMI) and setting rents for 17 units at 50% AMI. He also described energy-efficiency work including high-efficiency boilers, hot-water heaters, LED lighting, window replacement and participation in multifamily efficiency programs.

Roberts told the council the request does not require any city funding; rather, a resolution of support helps make the developer'led application more competitive. Council members voiced support and the resolution passed by voice vote.

The developer and staff noted the project will compete through Ramsey County's application process; council success depends on the county award and the competitive scoring of the solicitation.