A Catholic church in downtown St. Paul is objecting to a nonprofit developer's plan to convert a historic dormitory into an 88-unit supportive housing complex, citing an increase in crime tied to a concentration of homeless shelters in the area.

Minneapolis-based Aeon sought a variance from the city to convert the vacant Mary Hall property at 438 Dorothy Day Place into affordable apartments, some of which would become permanent housing for recently homeless individuals.

The city's zoning code requires such facilities to be at least 600 feet away from other overnight shelters and supportive housing, but Aeon's project would be 60 feet from Catholic Charities' downtown St. Paul campus that was completed in 2019.

The Church of the Assumption, located a block away, appealed the variance to the City Council, which will hold a hearing on the decision at its Aug. 7 meeting.

The church's pastor, the Rev. Paul Treacy, said in a statement that over the last few years the parish has seen "a dramatic increase in crime, illegal drug sales and use, and other problematic behavior on our streets and campus."

"To be clear — Assumption does not oppose supportive and affordable housing," Treacy wrote. "Our decision to appeal this variance approval was driven by a desire for a pause, even if just to allow this and other parts of our city to stabilize."

Treacy wrote that he and church leaders are concerned about the precedent the variance sets at a time when downtown St. Paul has several vacant buildings, including the former St. Joseph's Hospital nearby.

He wrote that downtown's problems have been compounded "by the pattern of other communities around the metro, the state, and beyond sending more of their vulnerable residents to St. Paul or Minneapolis."

Juan Torres, Aeon's director of housing development, said the nonprofit plans to continue its conversations with Assumption.

"We share some of the concerns that they have," Torres said. "We hope that we can work collaboratively with all our neighbors to be able to create a more safe environment in that area."

Torres said the Mary Hall project has been in the works for many years and received support from the state, county and city.

"This is a really important stepping stone for individuals coming out of homelessness," he said. "We're excited to be able to provide permanent supportive housing at a time when there's such a dramatic need for housing in our region."

Mary Hall was built in the 1920s as a dorm for student nurses and served a variety of uses over the years. Most recently, it was an emergency homeless shelter following the COVID-19 outbreak in 2020.

Aeon is working to complete its financing this year and aims to start a 16-month construction schedule in the fall or winter, Torres said. The project will cost an estimated $30 million to $34 million.

The nonprofit will partner with Ramsey County and the U.S. Department of Veterans Affairs to provide housing for formerly homeless people. Other units would be reserved for tenants earning less than 30% of the area median income.

While the services Aeon provides will not overlap with Catholic Charities' programs at the two-building Dorothy Day Place campus, Torres said he expects the pair will collaborate on efforts to keep the neighborhood safe. Aeon plans to invest a "significant amount" in security, he said.