Port to sell East Side plot to Health East

Chunk of land from old 3M campus would house headquarters of a Health East division.

By CHRIS HAVENS, Star Tribune

Last update: October 14, 2009 - 12:15 AM

The St. Paul Port Authority has reached a deal to sell some land on the city's East Side to a division of Health East.

The purchase agreement, to be voted on by the Port Authority Board on Oct. 27, calls for Health East Medical Transportation to build a headquarters on a 4.5-acre parcel that is part of a larger chunk of land that the Port Authority purchased from the 3M Co. last year.

Health East would pay $425,000 for the land and build a $5 million building that would house 120 workers and 50 ambulances. The building would be used for administration, communications, training and vehicle maintenance, said Allison Sandve, Health East spokeswoman. She said the company has run out of room at its North End location.

If the deal goes through, the building would be built on the northwest corner of Arcade Street and Reaney Avenue and could be completed by fall 2010. Health East is expected to use a portion of Port Authority tax credits to help finance the construction and relocation.

"We're very excited about this opportunity, but we still need Port Authority Board approval and need to close on the acquisition of the land before this project becomes reality," said Louis Jambois, Port Authority president.

The addition of 120 jobs, plus the potential for more, would be welcome news on the East Side, which has lost several major employers.

"We're excited to become the first 'new neighbor' and first to occupy the redevelopment initiative that the Port Authority is spearheading in the former 3M site," said Brad Anderson, senior director of Health East Medical Transportation. The facility will allow for expanded services in the metro area, he added.

Generally, the Port Authority buys and cleans industrial land with the goal of selling it for $1 to companies that promise to bring in high-paying jobs and significant tax revenue. In this case the agency is selling the land outright because it wasn't contaminated and had a strong market value.

The proceeds of the sale will go toward cleanup and infrastructure development at the rest of the 3M site.

The Port Authority is negotiating to buy the remaining 11 acres of the 3M land. A purchase agreement was approved in March to pay $1.7 million for it, and the Port Authority has until Dec. 15 to close the deal. Thus far, it has paid $750,000 to 3M to keep the utilities on, Collins said.

The reason for the closing delay was to allow a federal historic preservation analysis to determine whether any of the eight remaining buildings are worth preserving. The area is eligible to be a historic district, and the study must be done if the Port Authority wants federal cleanup money.

The Port Authority purchased 35 acres surrounding the parcel last year and issued $16 million in bonds to buy it and pay for some cleanup and redevelopment costs. The agency hopes to bring in more than 1,000 new jobs and increase real estate tax revenue by $1 million annually.

A citizen group has been discussing options for the land and possible reuse of the buildings.

Chris Havens • 612-673-4148

Recent St. Paul stories

Capitol doors broken; suspect held - October 14, 2009

Capitol doors broken; suspect held - A 26-year-old St. Paul man was arrested Thursday afternoon after allegedly breaking three glass doors at the State Capitol, police said. More