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Category: Housing Development
Project: Schmidt Artist Lofts
Project Location: 900 West 7th Street, St. Paul, MN 55102
Status: Completed and fully occupied
Cost: $132,612,430
Description: The Schmidt Brewery has been an important part of history in the city of St. Paul,
Minn. providing jobs to the residents of the neighborhood for nearly 100 years. Originally built as the
Cave Brewery, the Schmidt Brewery has been home to the Stahlmann, North Star, Pfeiffer, Jacob
Schmidt and Landmark brands. The last kegs that rolled out of the location in 2002 were filled with
Grain Belt and Pig’s Eye brew. After a stint as an ethanol processing plant, Schmidt Brewery sat
vacant until a massive community and developer effort resulted in a plan for revitalization of the
brewery’s 16 acres and the creation of Schmidt Artist Lofts.
The Schmidt Artist Lofts has 260 total housing units including 247 loft-style units in the brewery’s
former “Brew House” and “Bottle House” as well as 13 townhomes. All 260 units are section 42
housing, providing affordable living for members of St. Paul’s vibrant artist community; units are
available to artists of all disciplines.
The project utilized a variety of funding sources to make the project viable including $30.9 million in
Low Income Housing Tax Credits, $21.1 million in State Historic Tax Credits and $21.1 million in
Federal Historic Tax Credits. Dominium also worked closely with state and community groups to
bring the project to completion. This included the West 7th Street/ Fort Road Federation, the City of
Saint Paul, the Metropolitan Council, Ramsey County and the MN Department of Employment &
Economic Development (DEED). This broad community effort resulted in a development project that
revitalized a long-vacant historic site and now provides strong community value.
Community Needs Addressed: Residents are impacted by the support of St. Paul’s local culture
plus the added culture that Schmidt Artist Lofts provide. This project is designed to take advantage
of the building's natural light, high ceilings and existing character to provide inspiring live/work
spaces for its artist residents. The building itself is noted by architectural historians for its
crenellated towers and Gothic details. Former industrial and brewing uses in the various buildings
provide opportunity for every one of the 247 loft units to have its own layout and personality.
The Schmidt Artist Lofts also address the pressing need for affordable housing in St. Paul. All 260
units provide affordable living options, with 234 of the units at 60 percent of the Average Median
Income (AMI) and 26 units at 50 percent of AMI.
With intentions of catering to the artist community, common space at Schmidt Artist Lofts will
provide space for artist residents to work. Residents can take advantage of numerous unique
studios tailored to yoga/Pilates, dance, paint, pottery, play/performance, sound and media. These
studios incorporate additional features of state-of-the-art kilns, advanced acoustics, lighting
capabilities, Wi-Fi, projectors, and the latest in sound recording/mixing equipment. Residents also
enjoy a fully equipped fitness center and multiple galleries to showcase artwork. At Schmidt Artist
Lofts, common areas provide opportunity for residents to network with fellow artists. They can
NDC Academy 2015
Housing Development
Schmidt Artist Lofts
socialize in the community party room with full kitchens, in the lounge area on the rooftop deck, or in
the first floor lounge area next to a cozy fireplace.
With art and culture a central feature of St. Paul’s community, the Schmidt Artist Lofts provide a
unique living option for the community’s artists to live and work together in an affordable setting.
Benefits and Outcome: As a community icon and an important part of the area’s history,
Dominium was committed to finding an appropriate use for the site while maintaining the historical
elements of the buildings. A strong demand for affordable housing in Saint Paul, coupled with the
opportunity to preserve the historic buildings, proved that multifamily housing was the best possible
use for the site. Exterior work improved the overall aesthetic of the area and helped bring life back
to the site. There will be improvements to the storm water management systems on the site and
Webster Street, which used to run through the site, will also be re-opened and repaired to allow
better access.
In addition to the housing project, the Rathskellar located on West 7th will remain in place and the
adjacent land owner is working on plans for a commercial / retail space that will ultimately provide a
great mixed use area by which the surrounding community will benefit from. With the completion of
the project, Webster Street has been re-opened which re-integrates the local community with the
site. The plaza facing 7th Street will serve as a gathering place for artist fairs, farmer’s markets, or
other community activities. In addition, the main brewery site has welcoming green spaces, seating
areas, and water features that are an inviting spot for the public and neighborhood residents.
The project was fully leased soon after it opened, showing the strong community desire for highquality affordable housing. The Schmidt Artist Lofts provide nearly 300 artists an affordable place to
practice their craft in a space specifically designed to support their ambitions.
Project Collaborators: The redevelopment would not have been possible without the strong
financial support of the numerous financing partners. The two largest financing partners on the
transaction are MetLife and U.S. Bank. MetLife, through its relationship with Alliant Capital, Ltd., a
national tax credit syndication company, is the equity investor, committing more than $50 million in
equity to secure their investment in the Federal Low-Income Housing Tax Credits and Federal
Historic Tax Credits.
U.S. Bank has provided a $48.2 million construction loan and $24.3 million letter of credit to allow
construction to help finance the major renovation.
Further, U.S. Bank also served as the State Historic Tax Credit purchaser through its State Tax
Credit Clearinghouse.
The project also benefits from financial support from the City of Saint Paul, the Metropolitan Council,
Ramsey County and the MN Department of Employment & Economic Development (DEED).
Permanent financing is being provided by Cornerstone Real Estate Advisors (Mass Mutual).
Project partners also included BKV Architects who were instrumental in preserving the historic
structure while transforming it into quality housing units; and Peer Engineering, Inc. who supported
the environmental remediation of the property.
What Makes Your Project Unique? : The Schmidt Brewery was listed as one of “Minnesota’s 10
most endangered historic places” by the Preservation Alliance of Minnesota. The brewery sat
vacant for more than 10 years, depressing local property values and hindering community
development. Through a coordinated community engagement and development process, Dominium
NDC Academy 2015
Housing Development
Schmidt Artist Lofts
transformed the long-vacant community landmark into a dynamic live-work location for local artists,
all while maintaining the historic features of the brewery.
Now the Schmidt Artist Lofts are a community gathering space that highlights the diverse and
vibrant artistic community of St. Paul while providing high-quality affordable housing for those
artists.
The process of bringing the Schmidt Brewery back to life as the Schmidt Artist lofts was unique
because it was a collaboration between the developer and the community, ensuring that the final
product would enhance the local community. Preserving one of the most recognizable landmarks in
the Twin Cities while empowering a vital part of the community, artists, makes the Schmidt Artist
Lofts more than just a housing project. It is really a community reinvestment project that preserves
the historic brewery while cultivating the art and culture that makes St. Paul the city that it is. By
serving artists, the Schmidt Artist Lofts helps improve the lives of every St. Paul resident.
Organization’s Name: Dominium
Website: http://www.dominiumapartments.com/
Main Contact: Jenna Johnson
Email: jjohnson@dominiuminc.com
Phone Number: 763-354-5592
NDC Academy 2015
Housing Development
Schmidt Artist Lofts
NDC Academy 2015
Housing Development
Schmidt Artist Lofts
$
$
$
$
$
Capitalized Expenses During Construction
Cash Accounts
Professional Services
Financing Costs
Historic Costs
Version: October 2014
Developer Fee
Project Name:
Project Contact:
Submission Category:
132,612,430
Total Uses of Funds $
60,445
1,306,297
19,335,274
$
$
618,314
429,878
2,807,081
3,702,836
5,410,476
1,672,874
90,718,238
6,550,717
Amount
$
Tax Credit / Bond Fees Payable
Closing Costs
$
$
Construction Costs
Borrower's Counsel
$
Acquisition Costs
Use
Uses of Funds
Borrower Cash
Community Development Block Grant
$
$
$
$
$
$
$
$
$
$
$
132,612,430
21,658,230
1,500,000
2,716,006
1,825,000
1,672,874
32,353,330
22,501,760
21,035,230
2,950,000
2,500,000
21,900,000
Amount
Total Uses = Total Sources
Total Sources of Funds $
Environmental Clean Up Grants (DEED/MetCouncil/Ramsey County)
LCDA Development Grant
Capitalized Expenses During Construction
Federal Low Income Housing Tax Credit Equity
Federal Historic Tax Credit Equity
State Historic Tax Credit Equity
Tax Increment Financing
Seller Financing
1st Mortgage
Source
Sources of Funds
PROJECT SOURCES & USES OF FUNDS
NDC Academy 2015
Housing Development
Schmidt Artist Lofts