City delays decision on new Uni-Snelling entertainment district

More time is needed for University-Snelling area business owners and residents to discuss an ambitious liquor licensing plan centered on the busy intersection. In the meantime, Dilla Sports Bar and Ethiopian Restaurant will be allowed to apply for the on-sale liquor license it has sought.

The St. Paul City Council Oct. 28 agreed to the request for more time, while allowing Dilla’s request to move ahead. Dilla’s owners can currently serve liquor and stay open until midnight as a restaurant. Staying open until 2 a.m. requires a different on-sale liquor license. Such licenses were long capped in number by council ward.

The plan originally before the council calls for four quadrants around the University-Snelling intersection to be able to each have one new on-sale liquor license that allow 2 a.m. closings. That would bring the total number of such licenses in the neighborhood to seven.

The licenses would be added through what is called a commercial development district. The districts have been used for years to create entertainment districts. But in more than 30 years the districts were largely used to allow an on-sale liquor license outside of a longtime per-council ward cap.

The per-ward cap was dropped 11 years ago but there still is an overall limit of about 215 liquor licenses outside of downtown.

The Snelling-University district has one characteristic that set it apart from others. It is in both Wards One and Four, which meant two separate neighborhood hearings were held in October. In-ward hearings during the commercial development district process are required under the city charter.

The Planning Commission reviewed the district request in August and recommended approval.

But saying that more community feedback is needed, the Hamline Midway Coalition, Midway Chamber of Commerce and Union Park District Council asked for more time. Two months will be used to collect feedback. DSI Deputy Director Dan Niziolek said that added time wouldn’t be a problem. He also said that the Dilla request should move ahead.

The HMC Executive Committee sent a letter stating strong support for the two-month layover request, citing the need to follow longstanding committee and community review and votes on such matters.

“Engaging in this type of process, especially for a proposal for a Commercial Development District with such significant neighborhood impact, is necessary to allow the District Council to perform its advisory role for the city,” the letter stated.

City Council members Anika Bowie and Molly Coleman agreed to split the district request. While she has heard many comments about how more businesses could bring vitality to the area, Coleman said she is also very aware of concerns about how part of the district needs more input.

“The community engagement doesn’t stop when we vote today,” said Bowie.

The idea has met pushback from area business and property owners, who cited the neighborhood’s ongoing problems with vagrancy, illegal drug use and theft. The owners of the new Eme Coffee and Tea, 1573 University Ave., said that while they are excited for new development, they already deal with problems caused by unsheltered people loitering, using drugs and drinking in the neighborhood

“I have no idea why the city would want to grant more liquor licenses in general,” said Alan Hupp. He owns rental properties including a building at 1622 Sherburne Ave., which is right behind Dilla. His tenants have had problems with behavior in the area.

Hamline-Midway resident Roberta Downing recently opened the HD Work Space at 571 N. Snelling Ave. She described the area’s issue with people buying, selling and using fentanyl. “The neighbors feel that nothing will be done about it,” she said.

United Village representatives gave the proposal qualified support but also clarified their position. Joel Carlson said that United Village didn’t make the request for the commercial development district.

United Village businesses already have or will have any on-sale liquor licenses they need with district status. Project advisor Mike Hahm said that while there is support for increased neighborhood vitality, “the area has been challenged.” He suggested a slower approach to adding new on-sale liquor licenses.

Of the four quadrants, the largest would include the entire 35-acre Allianz Field/United Village “superblock” bounded by Saint Anthony, Snelling and University avenues and Pascal Street. That area is being developed as United Village, with two restaurants, an office building, hotel and other planned development.

Other quadrants would be much smaller, typically extending to commercial alleys. The northeast corner quadrant would extend north to Edmund Avenue and west to Pascal. The northwest quadrant would extend west to Aldine Street and north to Thomas Avenue.

The southwest quadrant would extend west to Pierce Street and south along Snelling to an Allianz Field service drive.