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West St. Paul City Council approved the first steps in converting a former church property to townhomes and Council salary increases. They also approved a study to upgrade the city pool and debated alley reconstruction.
Townhouses at Former Church
Faith United Methodist Church is in the process of selling their property at 1530 Oakdale Avenue to M/I Homes who plans to develop 42 townhomes on the site. The Economic Development Authority (EDA) approved a development agreement to facilitate the sale—the city effectively guarantees to cover a portion of the costs if needed.
- How much: The maximum amount is about $380,000 in a worst case scenario, though City Manager Nate Burkett said a best case scenario is more likely at around $20,000. A Dakota County redevelopment grant of $250,000 makes up the bulk of the costs and it seems likely the project will get the grant.
- Why: A resident asked why a profitable company should be subsidized. Half the Council and the city manager tried to explain the economics of redevelopment. In short, the best way to lower the tax burden is redevelopment. So the city incentivizes projects that meet their goals. In this case, converting nonprofit property that doesn’t pay property taxes to one that does is a win. Secondly, any developer would be looking for similar incentives. Thirdly, this gives the city some measure of control, as opposed to not being involved where it could go to another nonprofit with no property taxes or a developer who wants to do apartments.
- Bottom line: When complete, the project is expected to bring in at least $110,000 in property taxes per year, easily repaying even the worst case scenario in a few years. Council talked about how over 20 years, this project would bring in at least $1.5 million for the city in property taxes, helping reduce the burden on current residents.
- What’s next: The EDA approved the agreement unanimously. The next step will be site plans and formal approvals (with a public hearing) that will likely come forward in July.
Council Salary Increase
Charter Commission unanimously recommended an increase to the mayor and Council member salaries. It amounts to a 26% increase the first year, going from $8,165 to $10,400 for Council and $10,480 to $12,500 for the mayor. Council unanimously approved the first reading.
- Why: Rationale focused on bringing pay in line with comparable cities, better reflecting the amount of work Council members put in, and improving the pay to make elected positions more accessible.
- Process: Council pay is a Charter issue, which means it requires two readings, a public hearing, and a unanimous vote by Council (including the mayor). The public hearing will be held on June 10.
- More: We gave more details in our preview report.
Other Items on the Agenda
- Pool rehab: City Council approved a feasibility and design study to explore options for upgrading the city pool. Originally opened in 1956 with a major rehab in 1999, the pool again needs repairs and upgrades. The study will consider a range of options from basic upgrades to the less likely options of relocation or disbursement (closing the pool in favor of multiple splash pads around the city). Community engagement will happen this summer with the full study completed by next year.
- Alleys: During the Open Council Work Session (OCWS), Council discussed alley reconstruction and maintenance. No one was happy to see the city spending about $50,000 per year to patch alleys while leaving it up to residents to petition for reconstruction. Staff will likely present an ongoing plan to upgrade all alleys, which are 90% assessed to residents. The city will give an option to opt out via petition, but as a result the burden of maintenance will fall to homeowners either through maintenance assessments or vacating the alleys (meaning residents would have to privately contract for maintenance and plowing). A fleshed out plan will come forward at a future meeting.
- Library update: Wentworth Library Branch Manager Stacy Lenarz gave an update on library services, including self-service hours coming in August and the 2025 remodel.
Engage
- Watch: City Council, OCWS, and EDA meetings are archived online. You can also watch the video recap from Council Members Robyn Gulley and John Justen.
- Learn more: Guide to West St. Paul City Council.
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