St. Paul-based Securian Financial and the Bush Foundation invested $30 million in a nonprofit fund aiming to redevelop the city’s struggling downtown.
The St. Paul Downtown Development Corp. (SPDDC) has used those dollars to purchase three commercial properties formerly belonging to Madison Equities, downtown’s largest landlord until its pandemic-induced collapse. It took control of a fourth Madison property, the 25-story U.S. Bank Center, by buying its bank note last month.
Leaders of the nonprofit have said they are seeking corporate and philanthropic funders who will accept below-market returns on their investments, which will go toward downtown revitalization projects.
Both Securian, a Fortune 500 life insurance and financial services company, and the nonprofit Bush Foundation have operated in downtown St. Paul for decades.
“Downtown St. Paul isn’t just where Securian Financial has been headquartered for more than 145 years — it’s an essential part of who we are as a company,” Chris Hilger, the company’s chairman, president and CEO, said in a Feb. 5 statement. “We are all in on doing our part to help revitalize downtown and are investing in this fund because St. Paul is our home, and we are committed to it for the long run.”
In addition to acquisitions, the SPDDC could use the fund to maintain and improve its properties and support pre-development work. It’s possible the nonprofit could seek financing in the future to fully fund redevelopment projects.
It could also partner with other firms or sell projects to private developers, SPDDC president Dave Higgins has said.
“We’re here to serve as the driver and centralized organization to encourage broader market investment in the central business district in downtown, and this fund and its investors are critical in making these projects a reality,” Higgins said in a statement.
