A New District for a Safer, Cleaner Downtown
What is happening in 2024 to create a new DID?
Since its launch in 2021, Saint Paul Downtown Improvement District has already proven itself effective and invaluable – police data shows police calls for quality of life crimes and concerns fell by 40% within SPDID boundaries, while they increased significantly in other parts of downtown.
But we know that workers, residents and visitors don’t just stay in one part of downtown, they take advantage of our compact, walkable geography and move around to enjoy all the restaurants and attractions from Rice Park to Lowertown and everywhere in between. However, when people leave the district, they experience more quality of life problems at higher levels, and as a result, their overall experience of downtown suffers. As an effort to address these issues, commercial and residential property owners came together to reimagine the Downtown Improvement District and petition to create a new District that serves all downtown.
When does the new district take effect?
As of September 7, 2024 the effort to create a new District has successfully completed the City Council approval process. The new District will take effect and cover all of downtown effective January 1, 2025.
What will be different about the new District? Why now?
The new district will serve all downtown – from the Xcel Energy Center to CHS Field, the River to 94 – and include both commercial and residential properties. When the SPDID was established, the state law regulating Special Service Districts (428A) allowed only commercial and industrial parcels to be included in a district. In 2023, that law was amended to allow for residential condos and multi-family properties to participate. This is a tremendous opportunity for downtown Saint Paul. Downtown’s residential population is one of its greatest assets and represents an important share of downtown’s overall property. Expanding the boundaries of the SPDID to include all commercial and residential properties would create a safer, cleaner and more consistently positive experience across all of downtown.
All new funds will be dedicated to adding or enhancing existing safety strategies downtown including:
Additional, improved safety ambassadors
Bike patrol and added skyway coverage
Funds to pay a community prosecutor dedicated to downtown livability issues
How was the assessment rate shown on my petition calculated? Is the assessment annual?
If you are a commercial property owner, multi-family housing property owner or condo owner and received a petition in the mail, the proposed service charge/assessment rate shown on your petition is the annual amount proposed for tax year 2025. If the new district is successful and passes, this is the total amount that would be included on your property tax statement for 2025.
Annual service charges for assessable parcels within the District are based upon allocating program costs across all parcels according to two variables: building square footage and linear front footage. For 2025, the assessment rates are broken down the following way:
Gross Building Area
Commercial properties - $0.0639 per square foot
Residential properties - $0.03834 per square foot
Linear Front Footage
Commercial properties - $13.61 per foot
Residential properties - $8.17 per foot (prorated per condo unit within a building)
What is the proposed program budget for 2025?
To see a draft of the proposed budget for tax-year 2025 along with an excerpt from the draft of the 2025 Operating Plan including additional programming details, click here.
You can find all previous years’ budgets and operating plans here.
Who currently serves on the Board of Directors? How would this change?
Per the bylaws of the existing DID, the current board of directors is representative of cross-sector of commercial property owners who pay assessments into the district. If the proposal to create a new district that includes both commercial and residential property is successful, the board would adjust its size and composition to be reflective of the new universe of rate payers.
What is a downtown improvement district?
A Downtown Improvement District (or DID, also known as a Special Service District under Minnesota state law) provides enhanced services and programming within the public realm to a commercial district, including safety and security, outreach and wellness checks, graffiti and hazardous waste removal, and more. Its purpose is to supplement, not replace, government services. DIDs are proven to dramatically improve public safety outcomes and perceptions, enhance the upkeep and maintenance of public spaces, attract new businesses and help retain existing ones, increase property values, and stimulate overall community vitality. Plus, DIDs provide a way for property owners, residents and merchants to work collaboratively for their mutual benefit.
DIDs are a self-imposed and self-managed program where property owners in a defined area agree to pay for enhanced services there. This revenue is managed by the property owners themselves, not by the city. Why are there thousands of these districts nationwide? Because they work.
Why are DIDs so important, especially now?
Even before COVID-19, city services around safety, cleanliness and overall presentation were not meeting the needs of downtown Saint Paul. In 2020, commercial property owners recognized that the pandemic’s impact was only exacerbating these issues, so they came together to establish the Saint Paul Downtown Improvement District (SPDID) as a tool to address them. Since its launch in 2021, the SPDID has delivered these needed programs and services operating above and beyond what the city can provide within its boundaries. As a result, the area has seen a marked improvement in quality-of-life concerns and cleanliness within the public realm.
Aren’t these services the City’s responsibility?
DIDs throughout the country have been created because the private sector recognizes that the public sector cannot deliver the level of service on an affordable basis that private property and business owners demand. DIDs can provide quality, impactful services squarely in the control of private property and business owners already adept at leveraging investment into results. The DID does not relieve the city of its basic responsibilities for which property taxes are paid and would instead provide a means to ensure that the city actually performs its responsibilities.
Does having the DID make it easier for the City to reduce their commitment within the district?
No. Operating the SPDID remains conditional on a commitment from the City of Saint Paul to maintain its current levels of service within the DID.
Our property already performs some of the DID services, do we end up paying twice?
No. The overall image and experience of downtown Saint Paul suffers from inconsistent standards of management. Without a method to provide consistent services this contrast will continue to be a detriment to the downtown economy and its ability to retain and attract employers and employees, residents and visitors. An expanded DID would provide services that aim to create a consistent, high-quality experience throughout downtown. Many properties within DIDs that perform a high level of maintenance for their property have found efficiencies in coordinating their work with that of a DID.
What is the relationship between SPDA and SPDID?
The Saint Paul Downtown Alliance is a 501c3 nonprofit established in 2018 with a goal of driving vitality downtown. One of the first projects that the Downtown Alliance took on was to determine the feasibility of creating a DID in Saint Paul. Working with property owners who were enthusiastic in their support of establishing a district, the SPDID was created as a separate, independent 501c6 nonprofit organization in 2020. The SPDID is governed by its own board of directors and maintains its own bank account where monthly payments from the city are deposited directly. The SPDID board of directors determines the annual budget, assessment rate and operating plan for district . The SPDID works with the Downtown Alliance through a professional services contract to manage the day-to-day operations and administration of the SPDID.
Is participation in the DID voluntary?
Any property that is exempt from assessment can voluntarily participate in the DID. Once the required threshold of financial support from the private sector has been established for a given geographic district, all properties that are properly assessable under Minnesota law are obligated to participate.
How were the boundaries of the current DID determined?
The boundaries of the DID were determined by property owners and their tenants and intended to capture the core commercial and visitor district of downtown.
Is the DID a government program?
No. The DID is an entirely private undertaking. Minnesota law requires that the City Council ensure that the DID’s private Board of Directors has been legally constituted and that the City of Saint Paul and Ramsey County properly function as fiscal agents for levying assessments, collecting them as part of property tax payments, and disbursing proceeds to the DID.
Is this a tax controlled by the City?
No. The programs and projects of the DID are operated completely independently from the City and controlled by the rate payers themselves.
Is the DID be permanent?
Under Minnesota law, a DID requires annual approval of operating plans and budgets and reauthorizations every five years.