St. Paul City Council puts Central Corridor decision on hold

A plan to assess businesses and property owners about $3 million for street beautification along the planned Central Corridor light-rail line has been put on hold for a couple of weeks.

About two-dozen people spoke against the charges Wednesday at a hearing before the St. Paul City Council.

The biggest concern -- aside from not wanting to pay -- was about when to pay the assessments, especially when construction would be disrupting business. Council Member Russ Stark suggested the delay so city staff members could look at ways to either defer payments or to find other money to reduce the overall assessment amount.

Council Member Pat Harris said he wanted to explore ways to reduce the amount.

The majority of opponents were business owners already incensed over the expected loss of 85 percent of on-street parking along University Avenue. "We don't need trees," said George Younes, who noted a double-digit property tax increase on his property. "Please hear us clearly, the parking is essential."

Jack McCann, president of the University Avenue Business Association, said his group objects to the entire assessment program and called for more resources to help businesses survive construction.

Susan Kimberly, interim president of the St. Paul Area Chamber of Commerce, said the fees shouldn't be charged until after the train is running.

The 11-mile line, which will connect the downtowns of St. Paul and Minneapolis, has a price tag of about $941 million. It's expected to start operating in 2014. Project planners are trying to get the Federal Transit Administration to pay for half the cost, but a decision isn't likely until summer.

The Metropolitan Council, which is leading the project, is covering the street reconstruction, including sidewalks, and the line itself.

But St. Paul officials want upgrades -- including trees, storm water systems, an additional station and nicer lighting -- and the money for them has to come from elsewhere.

City officials came up with a $22.3 million plan, of which $18.8 million has funding proposals, for the improvements. The money would come from special taxing districts, sales tax revenue, bonds and assessments.

The assessments can be paid at one time or financed over 20 years. They will be used to pay off bonds, which will be purchased later.

There are two types of assessments proposed: One is for construction, the other is for operations and maintenance. The construction assessments, which are more expensive, are one-time. The operations assessments will recur yearly.

Costs range for construction assessments: A condo owner in Lowertown could pay $48, a Frogtown restaurant could pay $16,000 and a business park owner on the city's western border could pay $30,000.

The assessment costs could turn out to be lower, or they could be higher by no more than 10 percent.