St. Paul details how it will spend money for light-rail improvements

Ramsey County commissioners heard more details from St. Paul officials Tuesday on the city's plan to combine and extend the duration of four existing special taxing districts to raise money for improvements along the Central Corridor light-rail line.

The city wants the county's support as it makes its pitch to legislators. County commissioners wanted to know how the money will be used and how the extension affects taxpayers.

Improving the look of University Avenue is essential to future economic development along the line and could generate more revenue than the county would get from its share of the taxing district proceeds, city officials say. The 11-mile line from downtown Minneapolis to downtown St. Paul has a cost of about $914 million.

If the county supported the move, it would mean that about $1.9 million a year would stay off the county tax rolls until 2029. The taxing districts currently are set to expire by 2016. Put another way, the owner of a $200,000 house in the city of St. Paul would be giving up a $24 decrease in their annual property taxes. The decrease for a suburban owner of a $200,000 property would be $7.

The city plans to sell $37 million of bonds to pay for the improvements and then to pay the bonds off with the proceeds from the taxing districts. Those proceeds are expected to be about $70 million by 2029.

The city's three priorities for the money are to:

• Improve the streetscape ($27.5 million).

• Replace lost parking on University ($4.5 million).

• Buy land needed for construction of the line ($15 million).

"I think they're wise priorities," Commissioner Jim McDonough said.

But the $37 million doesn't cover the entire amount the city wants to spend, so assessments or money from federal programs could be used to fill the gap.

"We're scrambling," said Nancy Homans, policy director for Mayor Chris Coleman.

Board Chair Jan Parker seemed supportive of the plan but wanted to have input from county officials and make sure suburban residents have access to the transit line through park-and-rides or other means.

Commissioner Janice Rettman, a former City Council member, said she thought there were other places to find money for the improvements. Noting current budget concerns, she asked her colleagues if the Central Corridor was the best place to spend the money.

The County Board will probably vote on a resolution supporting the changes in the coming weeks.

St. Paul also is seeking support from the school district for its legislative request.

Chris Havens • 612-673-4148