The sale of the Penfield apartment complex, the building St. Paul overhauled on the edge of downtown, will pay for a number of other projects across the city.
City leaders on Wednesday approved the decertification of the tax increment financing (TIF) district that helped fund the project, and said remaining TIF dollars and profits from the sale will be spread among a number of priorities.
The city will put $4.3 million toward paying off municipal golf course debt, and Mayor Chris Coleman's budget for next year uses $2 million to start a "Job Opportunity Fund" that would give grants and loans to employers.
Nearly $8.2 million of the TIF dollars are included in the budget to cover infrastructure costs around the soccer stadium in the Snelling-Midway neighborhood.
St. Paul took over the redevelopment of the Penfield complex in 2012. The city invested $19.2 million in the $62 million overhaul of the building that was once the police headquarters. It now houses 254 market-rate apartments and a Lunds & Byerlys.
The city announced last month that it sold the property to JLL Income Property Trust and saw an $8.7 million profit from the sale.
People are interested in seeing the proceeds support new affordable housing in the city, Council Member Amy Brendmoen said. She called the city's development of the building a "risky move" that paid off.
Council President Russ Stark said it was a "wonderful outcome" and that he is excited to get the building, located at 101 10th St. E., back on the tax rolls.
Jessie Van Berkel • 612-673-4649