Commercial properties have been selling quickly, and some of them have gone for prices that shock buyers. If you want to open and run a business in St. Paul or the surrounding area, something you may find interesting is that the city is Minnesota’s first commercial community land trust.
This commercial community land trust allows senior housing and commercial spaces to be found more affordably in the Rondo neighborhood, which is something to consider if you are looking into moving your business or opening one in that region.
Why did investors in Rondo work to form a commercial community land trust?
Investors in Rondo wanted to make sure that there would be an answer to the challenge of affordability, especially among smaller, minority-owned businesses in St. Paul. It’s no surprise that smaller businesses have been getting pushed out of the region due to higher rental and commercial property rates. Seniors, too, were finding that they were having a hard time affording smaller, downsized homes where they could remain in their communities.
The commercial community land trust addresses both of those issues. For example, when investors reached out about purchasing two lots in the commercial corridor on Selby Avenue, the community decided that it wasn’t interested in the condos the investor wanted to build. Instead, the commercial community land trust actually discussed the community’s needs and acquired those lots from the city. Now, the Selby Milton Victoria Project stands on those lots.
The average rent in the Twin Cities was $15.95 per square foot in 2020, but in Selby Milton, it’s only $7.
Why does a project like the Rondo Community Land Trust matter?
Whether you’re a smaller business or an investor looking to build, it’s important to see how land trusts like this can work against you or to your benefit. Legally, these trusts can be helpful to you if you meet the community’s requirements, but you may need to negotiate more carefully if you’re a mid-sized or larger business looking to come into the space.
The unique approach in this part of St. Paul is not the first of its kind, but it is something that you should be aware of no matter where you’d like to maintain your business.