City of West St. Paul
The Goal
West St. Paul faced both a challenge and an opportunity following the stalled redevelopment of the former YMCA site on Thompson Avenue. After Hy-Vee scrapped plans for a large grocery-anchored development and sold the vacant land back to the City in 2022, West St. Paul was left with a highly visible, underutilized property in a key location. The City needed to regain momentum, mitigate market uncertainty, and reposition the site in a way that aligned with long-term community goals while maintaining financial discipline and public trust.
The Solution
Ehlers provided end-to-end financial and redevelopment advisory services to help the City regain control of the site, identify a development partner, and advance a viable redevelopment strategy. Ehlers assisted with issuing temporary debt to acquire the property from Hy-Vee, secured special legislation to enable creation of a Tax Increment Financing (TIF) District, supported negotiation of financial assistance, and structured and established the TIF District to support phased implementation while protecting the City’s long-term fiscal interests.
The Outcome
West St. Paul successfully reclaimed control of a key redevelopment site and advanced a clear, implementable vision for a mixed-use city center. The Thompson Avenue Redevelopment will deliver approximately 450 housing units, new restaurants and commercial activity, park space, and enhanced trail connections to the greenway. The outcome positions the City to transform a former redevelopment setback into a catalyst for long-term housing growth, community vitality, and reinvestment.