Grand Avenue's Big Change: A Mixed-Use Building on the Way

A developer is seeking a substantial loan from the city of St. Paul to construct a new six-story building at the busy intersection of Grand Avenue and Victoria Street. This project aims to replace the current Victoria Crossing East Mall and the former Billy’s on Grand restaurant. The developer, Ari Parritz, is asking for $3. 5 million in financial aid, which would be used to fund various aspects of the development. The proposed building will feature a mix of residential and commercial spaces. On the ground floor, there will be 12, 800 square feet dedicated to commercial and restaurant uses, facing Grand Avenue. Above that, there will be 90 market-rate apartments, and a level of underground parking with spaces for both the public and residents. One notable tenant that will be returning to the area is Juut Salon, which has found a temporary location nearby. They are expected to move into the central retail space of the new building by summer 2027. This project is part of a broader trend in St. Paul, where tax increment financing (TIF) is being used to support private real estate development.TIF allows property tax proceeds from a development to be used on-site for a number of years, funding specific types of improvements. While TIF can be controversial, it is seen as a necessary tool for redevelopment, especially in areas like Grand Avenue. The city council has been supportive of the project, viewing it as a way to bring new life to the neighborhood. The state of Minnesota has also contributed to the project, awarding St. Paul $350, 000 for abatement, demolition, and public infrastructure improvements. This funding is expected to increase the city’s tax base and leverage significant private investment. However, the use of TIF has been a topic of debate, with some arguing that it places a burden on the city’s tax levies. Despite the controversy, City Council President Rebecca Noecker supports the project, seeing it as a way to bring vitality to the area. She acknowledges the importance of TIF as a tool for redevelopment, especially in the current economic climate. The project is seen as a step towards revitalizing Grand Avenue and providing much-needed housing and commercial space.