St. Paul moves to buy former Ford lot for housing
St. Paul's Housing and Redevelopment Authority is moving to acquire the former Saxon Ford dealership site on West 7th to redevelop it with a significant affordable housing component.[1]
City leaders say the acquisition will restart redevelopment after a private plan stalled and position the parcel for proposals from affordable housing developers.[1]
The former Saxon Ford dealership on University Avenue W. closed in 2005, and the city has been trying to assemble and redevelop the parcel for 21 years. A prior private redevelopment effort stalled, prompting the HRA to consider public acquisition to regain control of the site.
Local observers say the council move could be a turning point for the prominent river bluff site near the State Capitol after decades of fits and starts. In Minnesota in 2026, only 41 rental homes are affordable and available for every 100 extremely low-income households. St. Paul's rental vacancy rate has remained below 5% since 2012, with most neighborhood submarkets also under that threshold.
The mainstream summary does not mention the significant federal funding involved in the acquisition, specifically the $600,000 in Community Development Block Grant (CDBG) funding that the St. Paul City Council is utilizing to finalize the purchase of the Saxon Ford site. This detail underscores the financial mechanisms at play in the redevelopment efforts and highlights the role of federal support in local housing initiatives. Furthermore, while the mainstream account frames the acquisition as a potential turning point after 21 years of stalled efforts, it overlooks the broader context of housing affordability in the region, where only 41 rental homes are available for every 100 extremely low-income households in Minnesota, exacerbating the urgency for such developments.
Additionally, the summary does not address the implications of St. Paul's rent control ordinance, which has been linked to a significant drop in construction rates and property values. A recent analysis suggests that this policy, which caps rent increases, may have contributed to the housing supply crisis in the city, contrasting sharply with Minneapolis's more flexible supply reforms. This aspect of local policy could be crucial in understanding the challenges faced in redeveloping sites like the former Saxon Ford dealership and the overall housing landscape in St. Paul.[2][3][4][5][6].
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📊 Relevant Data
The former Saxon Ford dealership on University Avenue W. closed in 2005, and the City of St. Paul has been attempting to assemble and redevelop the site for 21 years.
St. Paul poised to buy defunct storefront at former Saxon Ford dealership — Twin Cities Pioneer Press
In Minnesota, only 41 rental homes are affordable and available for every 100 extremely low-income households.
2026 Minnesota Housing Profile — National Low Income Housing Coalition
St. Paul's rental vacancy rate has remained below 5% since 2012, with 90% of neighborhood submarkets below 5%.
Market Watch Issue #2: Saint Paul — Minnesota Housing Partnership
📌 Key Facts
- City of St. Paul, via its HRA, is moving to acquire the former Ford dealership site on West 7th.
- The city’s stated goal is to redevelop the property with a significant affordable housing component.
- A prior private redevelopment effort on the same parcel stalled, prompting the city to restart the process through potential public acquisition.
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