St. Paul contemplates more liquor licenses on University Ave.

By JANE MCCLURE

A desire to add more dining and drinking options along University Ave. and Green Line light-rail service could result in St. Paul’s largest commercial development district. The district could be established by year’s end or early 2016. City officials hope it would jumpstart redevelopment at several sites between Lexington Pkwy. and the west city limits.

The district would be one-half block deep in some areas and would extend several blocks north and south in other areas, starting at Aldine St. In the West Midway, it would extend to take in former industrial sites that are being converted for mixed-use redevelopment, going as far north as Pierce Butler Rte. It would also extend north on Snelling several blocks to Englewood Ave., to include an area recently rezoned for mixed use. And, it would extend south to Interstate 94 along Snelling. City officials are hoping that when A Line rapid bus service starts on Snelling in early 2016, the improved transit would be an incentive for economic development.

It wouldn’t include the Midway Center superblock, which is eyed as a possible new Major League Soccer stadium site.

Ward Four Council Member Russ Stark brought forward the district in response to requests from property owners. It is one of two commercial development districts pending in the city. The other is centered on the former Schmidt Brewery keg house at 882 W. 7th St., which developer Craig Cohen is converting into a festival marketplace.

“Obviously, along the Green Line, we’re looking at creating more development opportunities,” said Samantha Henningson, legislative aide to Stark. The intent is to bring in more restaurants with full liquor licenses.

“Restaurants would love to come to St. Paul. But, when there is no license available, they’re no longer interested,’” said Dan Niziolek, deputy director of the city’s Department of Safety and Inspections (DSI).

If a commercial development district is created along University, any existing on-sale liquor licenses could then be used in other places in the ward.

St. Paul has had a citywide and per-council ward cap on on-sale liquor licenses for many years. Ward Four, Ward Three and Ward Two neighborhoods outside of downtown have no licenses available. Ward One has eight licenses available. The Ward One section of the proposed commercial development district extends from Lexington to Snelling. Henningson said including that part of University is still being discussed with the Ward One council office.

DSI officials, the city’s Business Review Council and City Council members are looking at making changes to St. Paul on-sale liquor regulations, but that will mean changing the city charter. It could also mean redefining restaurants and changing the longstanding rule of 60 percent food sales to 40 percent alcohol sales for on-sale liquor licenses. The changes could take many months, so as an interim step commercial development districts have to be implemented.

Ward Four has a cap of 16 on-sale liquor licenses. The last available license was snapped up earlier this year by Episcopal Homes, a senior living campus, which offers liquor in its private dining room. One group interested in a liquor license is Can Can Wonderland, the group seeking to convert a former N. Prior Ave. can manufacturing factory into an artist-designed mini-golf course. It would include a restaurant.

Ward One has 26 on-sale licenses; eight are available. The proposed soccer stadium site is in Ward One.

Commercial development districts typically have a neighboring property owner petition process, but that would be waived in this case because of the size of the district. Instead, a public input process would be set up through the Union Park, Hamline-Midway and St. Anthony Park district councils. The councils would hold public meetings.

The city also requires that before any commercial development district goes to the Planning Commission and City Council for approval, there needs to be a public hearing in the neighborhood where the district would be located.

The City Council enacted the districts in the 1980s as a way to develop entertainment districts. But the districts have had mixed success. Downtown St. Paul has about three dozen liquor licenses, most in restaurants. Cathedral Hill’s Selby Ave. commercial development district has also thrived.

But districts established at Energy Park, University and Dale St., University and Hamline, and at the former Amtrak station on Pierce Butler Rte. have not. Energy Park only has a couple of bar-restaurants. The other districts have no on-sale licenses at all. The remaining districts are single-site districts, set up so that a specific restaurant can sell liquor. Niziolek said city officials would prefer larger commercial development districts, and not single-site districts, in the future.