The St. Paul City Council signaled its support Wednesday for two housing developments targeted toward the recently homeless, despite tough scrutiny from homeowners and other nearby property owners.

Meeting as the city’s Housing and Redevelopment Authority, the council Wednesday approved $3.35 million in federal American Rescue Plan Act loan funding for Kimball Court, which Beacon Interfaith plans to expand from 76 to 98 units. The terms of the city’s $500,000 HOME loan, which was issued to Kimball Court in 2010, will be extended.

An architectural rendering for Kimball Court, a 76-unit “permanent and supportive” housing development at 545 Snelling Ave. N. in St. Paul, shows the planned addition of 22 units on the right, under a $19 million renovation and expansion plan presented by the Beacon Interfaith Housing Collaborative. The vacant Star Market convenience store to its north would be torn down to make room for an addition to the 1926 structure, a former hotel that houses the previously homeless in dormitory-style rooms. (Courtesy of Beacon Interfaith)

The $19 million expansion and remodel also is backed by Minnesota Housing Finance Agency housing infrastructure bonds, Ramsey County ARPA funds, county general obligation bonds, Metropolitan Council development grants, and client backing from the Red Lake Nation, as well as Section 8 housing vouchers through the St. Paul Public Housing Authority.

Council President Mitra Jalali said the Kimball Court expansion would provide Beacon Interfaith dedicated space to provide more clients services and the necessary funding for around-the-clock security, which could go a long way toward calming neighborhood concerns. She said St. Paul had stepped up to help the homeless, some of whom come from the suburbs.

“The rest of Ramsey County does not carry the need the way the city of St. Paul does,” said Jalali, who represents the Midway, addressing the council on Wednesday. “The strain is on us. We are leading, and we need other municipalities to be doing what we are doing.”

“The city can’t do it by ourselves,” Jalali added. “I’m excited that our funds are leveraging over half a dozen other sources — state and federal.”

The council also heard a staff presentation related to the proposed remodel of the currently vacant Mary Hall, which nonprofit developer AEON plans to convert into 88 units of “permanent and supportive housing” for tenants referred by Ramsey County and the Veterans Affairs Administration. Service providers from Radias Health and the Veterans Administrations will have dedicated space on site to connect tenants to job counseling, substance abuse counseling and other services, an AEON representative said. Security would be on-site 24/7.

“There’s always questions about security … and I think you’ve done a good job of thinking that through,” said Council Member Rebecca Noecker, who chairs the HRA and represents downtown.

AEON is seeking $2.16 million from the city’s pooled tax increment financing funding, which is money already in hand generated by development loans across the city. AEON’s $34.7 million project is targeted to individuals earning no more than 30% of area median income. The city funding would carry a requirement that all units remain affordable to residents earning no more than half of area median income for 30 years.

The city council likely will vote on AEON’s funding request later this month.

Both the Kimball Court and Mary Hall projects have generated concerns that services for the homeless are being too heavily concentrated in downtown St. Paul and the Midway.

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