What happens when an office tower is abandoned
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Nobody seems to want the Alliance Bank Center in St. Paul, raising questions about how the city is going to keep the tower safe.
Why it matters: With rising office vacancies and plummeting property values in downtown St. Paul, the abandoned tower highlights a problem that could be the first of more to come.
State of play: The city has condemned the 16-story Alliance Bank Center and taken over basic property management from distressed landlord Madison Equities. It's keeping the water on for fire suppression and maintaining some skyway access to other buildings, and it says it's also continuing to patrol the property.
Threat level: A complex this large and with this many access points presents a long-term safety risk.
- City inspectors discovered feces, urine and garbage during an April 3 inspection, which was detailed in a notice to condemn the property. There was also evidence of break-ins and broken doors and windows.
Here's the problem facing the city:
- Madison Equities has given up the property and said its lender doesn't want it. The lender, Royal Credit Union of Eau Claire, Wisconsin, declined to say if it would pursue taking ownership of the building.
- The city is also not likely to take ownership of the building or recommend demolition, said Department of Safety and Inspections spokesperson Casey Rodriguez. The Saint Paul Port Authority said it won't acquire the property, either.
Between the lines: The city says that in the meantime, its goal is "to maintain the building's safety and security until a new responsible party steps in to [take] care of it ... regardless of how long that takes."
Yes, but: Finding a long-term caretaker won't be easy or quick.
- There are delinquent taxes totaling nearly $650,000 on the property, according to Ramsey County records, and a transfer of ownership can't happen until they're paid.
- Landlords have a three-year redemption period before the county can force the building to be forfeited due to delinquent taxes, the Ramsey County Assessor's Office told Axios in September.
- Demolition, according to one local general contractor, which was granted anonymity to speak freely about a property it's not involved in, would cost between $6.50 and $7.50 per square foot, though several factors could change that estimate.
That means it would cost roughly $2 million to tear down the 300,000-square-foot tower. The retail complex and parking ramp would cost extra, as would underground space.
What we're watching: If other distressed downtown properties become abandoned and compound the problem.