City of St. Louis Park
The Goal
Amid a softening office market that has limited private-sector demand and the feasibility of traditional office reuse, the City had an opportunity to reactivate a vacant office building by repositioning it into a market-supported use that promotes long-term economic vitality.
The Solution
Ehlers evaluated the financial feasibility of the development and the need for public assistance, helped determine the appropriate level and structure of support, assisted with negotiating key terms of the development agreement, and guided the City through the establishment of a tax increment financing district to support redevelopment while protecting the City’s long-term fiscal position.
The Outcome
The Terasa Apartments, a mixed-use and mixed-income development, delivered 223 residential units offering housing choices across income levels, revitalized an underutilized property, and added nearly 21,000 square feet of commercial space anchored by a grocer. The project strengthens neighborhood vitality, supports long-term tax base growth, and advances the City’s affordable housing objectives.