Downtown St. Paul redevelopment nonprofit wants abandoned Alliance Bank Center

A nonprofit focused on redeveloping downtown St. Paul purchased the bank note for the Alliance Bank Center, a first step toward taking ownership of the abandoned office building.

The St. Paul Downtown Development Corporation (SPDDC), a subsidiary of the nonprofit St. Paul Downtown Alliance, announced its acquisition in a news release Tuesday. Officials did not disclose financial details of the transaction.

The 16-story property at 55 E. Fifth St. spiraled into a state of distress in recent months after owners suddenly stopped making utility payments, saying they could no longer sustain operational costs. The decision sent tenants scrambling to find new homes for their businesses with little notice.

The city blocked off the building’s key skyway connections and began providing minimal emergency building services. The SPDCC will soon ask the court to appoint a receiver to maintain and secure the building, continuing the current skyway closures, according to the release.

Last month, vandals ransacked a floor of the building, emptying fire extinguishers and throwing around appliances.

“There’s no greater example of the challenges and opportunities in downtown St. Paul than the Alliance Bank Center site,” SPDDC President Dave Higgins said in a statement. “We can’t create a strong and vibrant downtown St. Paul without creating a stable and robust core — and the Alliance Bank Center site is critical to making that happen."

Ramsey County assessors most recently valued the property at nearly $8 million. Madison Equities, formerly the largest property owner in downtown St. Paul, purchased it in 2019 for more than $18 million.

Madison Equities’ founder, Jim Crockarell, died in early 2024, and the toll of the office market’s post-pandemic decline quickly became apparent. County records show the owners put just more than $3 million down on the purchase of the Alliance Bank Center. Lenders have already taken back a few other Madison Equities buildings, and others are in receivership.

A spokesperson for the company did not immediately respond to a request for comment Tuesday.

The SPDCC will consider ways to restore the property, “which faces significant structural and mechanical issues following years of disinvestment and neglect, to a productive use either through rehabilitation or redevelopment,” the news release said.

The location of the Alliance Bank Center, along major street and skyway thoroughfares in the heart of the central business district, was a factor in the group’s decision, said Joe Spencer, president of the St. Paul Downtown Alliance.

“Everything’s on the table right now,” he said. “Obviously, there have been some challenges in downtown St. Paul. But that also creates what we think is tremendous opportunity. The nature of the moment means we have to consider all options for this property.”

Though urgency is in the “interest, collectively” of the city and its constituents, Spencer said he doesn’t expect immediate change as legal processes take time to unfold.

“Entrusting this building to a strong, capable partner marks an important turning point,” Mayor Melvin Carter said in a statement. ”With the St. Paul Downtown Development Corporation’s leadership, we have a real opportunity to stabilize a key site and unlock its potential as part of a stronger, more resilient downtown.”

In an interview Tuesday, City Council President Rebecca Noecker said she thinks the site’s redevelopment could be for housing or other uses, such as child care or a gym.

It’s also possible to demolish the building. A public park, for instance, could make neighboring office-to-residential buildings more appealing to future residents, Noecker said.

“The name of the game is vibrancy,” she said.

The St. Paul Downtown Alliance launched its development arm early this year to address real estate challenges in the urban core. Corporate and philanthropic organizations provided grants to kickstart the effort.

Officials likened the initiative to similar efforts in cities like Cincinnati, where the longstanding 3CDC nonprofit has played a role in more than $2 billion in development projects.

Staff writer Josie Albertson-Grove contributed to this report.