City HRA to develop former Saxon Ford site

A land assembly project on University Avenue in Frogtown could entice a developer to that neighborhood. Or at least St. Paul City Council members, acting as the Housing and Redevelopment Authority (HRA), hope so.

The HRA voted June 10, 2026 to buy 259 University Ave. W. for $600,000 in federal community Development Block Grant (CDBG) funds. A limited liability corporation managed by Justin Knutson has owned the property since 2023. The .11 acre property includes a two-story building dating from 1905 and a rear parking area.

The property is attractive to city officials as it is in the middle of an area where the city and HRA already own six other properties - 253, 255, and 263 University Ave W and 250, 256, and 262 Sherburne Ave. The Sherburne lots, once occupied by homes, are vacant as is 263 University Ave. The other two University lots are occupied by vacant buildings. The lots were acquired between 2006 and 2009.

Having such a large property available for housing or mixed use development on University Avenue is seen as a plus. Daniela Lorenz, a project manager with the city’s Department of Planning and Economic Development, cited the opportunity such a site could provide, especially in terms of providing more housing.

Council members expressed enthusiasm for the prospect of a larger development, including Ward One Council Member Anika Bowie. The site is in her ward.

Cheniqua Johnson, who chairs the HRA, said she, too, is excited to see the property purchase and potential redevelopment move ahead.

The neighborhoods east of Lexington Parkway haven’t seen the housing and mixed use development predicted years ago, when Green Line light rail began running in 2014.
The properties being assembled as one site are dubbed the Saxon Ford site as the University sites were once part of that longtime auto dealership. Saxon Ford left Frogtown in 2005 and now operate suburban locations.

The last site occupant, a temporary staffing agency, has moved out.

Acquisition sources for the other properties included a $1 million Land Acquisition for Affordable New Development (LAAND) loan from the Metropolitan Council in 2008. That loan requires the redevelopment to include a minimum of 20% of the housing units to be affordable to households earning 60% of Area Median Income (AMI).

A city staff report started that because the parcels weren’t developed within a set time, the city is in default on the loan. But past news accounts indicate that the loan was forgiven by Metropolitan Council in 2018, several years after the LAAND program was shut down.

At that time a 50-unit senior living facility and a commercial building were eyed for part of the site. Other proposals have also been floated but haven’t materialized.

In early 2026, HRA staff hired a licensed commercial real estate broker, Seanne Thomas of ABC Realty, to submit an offer to purchase the property located at 259 University Ave W, contingent upon HRA Board approval. A sale price of $600,000 was reached.
City staff estimate that it will cost another $100,000 to demolish properties at the development site and to assess environmental conditions and possibly do remediation if needed.