A lawyer for the largest private property owner in downtown St. Paul lambasted the state of the urban center in a letter to the City Council, painting a dismal picture of downtown’s “very evident crisis.”
The letter, sent last week, objects to the nonprofit St. Paul Downtown Alliance’s efforts to expand its improvement district, which charges property owners fees in exchange for cleaning and safety services.
“Downtown St. Paul is in trouble,” attorney Kelly Hadac wrote. “Crime is up. Bullet holes in the glass on the commercial buildings and elsewhere is no longer uncommon. There is rampant homelessness and drug use. Restaurants have gone out of business. Businesses have gone bankrupt. Skyways are empty. Public and private employees are working from home. I could go on and on but we trust you understand the point.”
Hadac has long represented Madison Equities, downtown’s largest property owner, which is marketing its entire office portfolio following the death of the company’s longtime owner, Jim Crockarell. Crockarell was a longtime opponent of the Downtown Improvement District, which was eventually drawn to avoid his properties.
The tone of Hadac’s letter diverges from brokers’ messaging, which present the portfolio as an opportunity for a buyer to invest in an iconic landmark and prime location.
Hadac did not respond to a request for comment. In addition to Madison Equities, he filed objections on behalf of the owners of 266 7th St. E. and 249 7th St. E.
The letter urges the council to refrain from increasing costs for financially stressed buildings and questions why property taxes would not cover cleaning and safety services. Many owners already pay for private security and maintenance crews, Hadac wrote.
“Any increased tax dollars would be better spent elsewhere, including the hiring of more real police officers to provide enhanced safety,” he wrote.
Joe Spencer, president of the Downtown Alliance, said the improvement district is designed to provide services that go beyond the city’s capabilities. Since 2021, a team of uniformed ambassadors have patrolled downtown daily picking up trash, cleaning graffiti and offering help to those who need it.
Under Spencer’s proposal, the district would double its size and budget. The funds would pay for additional safety ambassadors with better training and equipment. Spencer has also suggested hiring a city attorney exclusively dedicated cases involving chronic offenders and quality-of-life issues downtown — an idea Hadac called in his letter “absurd and illegal.”
The council is holding a public hearing on the proposal Wednesday afternoon and could hold a vote as soon as next week. After that, the fate of the expansion would lie in the hands of property owners. If those subject to 35% of the proposed service charges file objections with the city, the proposal is vetoed.
The original district was set up to avoid Madison Equities buildings, since Crockarell at the time owned enough property to single-handedly veto the improvement district.
“I think their letter is reflective of the experience in their buildings,” Spencer said. “And what I’ll say is it’s not the experience of all of downtown.”
