A Catholic church in downtown St. Paul is no longer fighting plans to convert a nearby building into an 88-unit supportive housing complex for the recently homeless.

The Church of the Assumption last month came out against the facility's location next to Catholic Charities' downtown campus and appealed nonprofit developer Aeon's request for a variance from city zoning laws, which require 600 feet between overnight shelters and supportive housing.

The Rev. Paul Treacy, Assumption's pastor, said church leaders have since decided to withdraw the appeal. They believe the effort would be unsuccessful and did not want to jeopardize ongoing conversations about the future of downtown, he wrote in a July 27 statement.

"We have always been and will continue to be supportive of Catholic Charities, and we look forward to working with Aeon," Treacy said in an email Tuesday. "Together with other neighbors, city and county officials, we hope to make progress on the important issues facing this part of St. Paul."

Aeon is working to finalize upwards of $30 million in financing to buy and convert the historic Mary Hall property, which is currently owned by Catholic Charities. The building at 438 Dorothy Day Place opened as a dorm for student nurses in the 1920s and has stood vacant in recent years.

Some units will go to tenants earning less than 30% of the area median income, while others would be offered to formerly homeless people through partnerships with Ramsey County and the U.S. Department of Veterans Affairs, according to Aeon.

Many of the key issues raised by Assumption remain unresolved. In addition to concerns for the safety of parishioners and neighbors, Treacy said the area's high concentration of homeless shelters creates more risks for vulnerable populations — by attracting predatory drug dealers, for instance.

One major challenge, he added, is that many communities outside St. Paul are sending their most vulnerable populations downtown, overwhelming resources.

"As stated previously, Assumption does not oppose affordable or supportive housing," Treacy wrote. "Having a home is essential for not only surviving, but for flourishing. However, concentrating vulnerable people in one place has proven to create negative consequences, especially for those experiencing homelessness or poverty."

Keith Kozerski, chief program officer for Catholic Charities Twin Cities, said public and private service providers have seen more acute needs since the COVID-19 pandemic. The nonprofit recently installed 6-foot-tall chain-link fences around its downtown campus, which draws more than 1,000 people a day.

"We're seeing people with greater mental health needs, greater chemical health needs," Kozerski said.

He noted that Catholic Charities has a yearslong history of collaborating with both Aeon and Assumption. Parishioners of the church helped found Catholic Charities more than 150 years ago, and many now volunteer regularly at Catholic Charities' Dorothy Day Place.

"We've really worked collaboratively to figure out: What are our mutual concerns?" Kozerski said. "What are some possible interventions as a community? And how do we keep working together in serving some of the most vulnerable people in our community?"