August 6th 2024.
It was a long and arduous journey for the West Seventh/Fort Road Federation to secure a portion of the historic Jacob Schmidt Brewery from demolition and revitalize the iconic Rathskeller office building. After almost a decade of hard work, they finally found a development partner who was willing to take on the task of preserving and reviving the building. However, their success was short-lived as they recently lost their lease in the Rathskeller.
Meg Duhr, the president of the federation and a volunteer, has been dedicating her nights and weekends to packing up their office. With the executive director on maternity leave, Duhr has taken it upon herself to relocate the organization to the second-floor office of St. Stanislaus Church. Although some board members expressed concerns about moving to a religious institution, the rent was free, making it the most feasible option.
According to Duhr, the federation's current situation is purely a volunteer effort, which is frustrating as they have other important issues to work on, such as the Riverview transit corridor and pedestrian safety. Instead, they find themselves dealing with the logistics of finding a new office space and moving their belongings. However, she remains optimistic about the move and believes that St. Stanislaus Church will be a good fit for their organization.
The federation's relocation was prompted by the new owner of the Rathskeller, Wilson Molina, who acquired the building from a Texas-based holding company earlier this year. Molina informed the federation that their monthly lease would increase to $1,700, which they could not afford. Molina has been renegotiating leases with all of the building's tenants, resulting in several businesses, including the federation, having to pack up and move out. However, some tenants, like an Asian fusion restaurant and a commercial bakery, have chosen to stay.
While the federation had hoped that their lease would protect them from a price hike, they discovered that they had no legal protection against it. This was a disappointing realization for the board members who had worked tirelessly to secure the building and ensure its preservation. In 2011, they received $1.9 million from the St. Paul Housing and Redevelopment Authority (HRA) to purchase the Rathskeller building and the adjacent Keg House property. They then sold the Keg House property for $550,000, which was used towards the building's redevelopment.
Over the years, the federation received additional funds from the city, HRA, Metropolitan Council, and the state Department of Employment and Economic Development. However, in 2015, they returned the Rathskeller building to the HRA to reduce holding costs, but remained involved in its maintenance and pre-development work. In 2015, the HRA board expanded a tax increment financing district near the future Victoria Park, which provided the federation with a $1.4 million loan.
Their efforts to find commercial tenants for the Rathskeller were met with success when Craig Cohen, the managing partner of Rathskeller Renaissance LLC, acquired the building in 2017. Cohen was no stranger to revitalizing buildings, having previously renovated three other buildings along West Seventh Street. In addition to the Rathskeller, he also acquired the Keg House and the building that now houses the White Squirrel bar and performance stage.
Unfortunately, the success of the Rathskeller was short-lived as Cohen's plans for a mixed-use development, Keg and Case, came to fruition. The project resulted in the federation losing their lease and being forced to relocate. As they pack up their belongings and move to St. Stanislaus Church, the federation reflects on the journey they have taken to preserve the Rathskeller and the challenges they have faced along the way.
For almost a decade, the West Seventh/Fort Road Federation had been working tirelessly to find a development partner who would be willing to save the historic Jacob Schmidt Brewery from certain demolition and give the iconic Rathskeller office building a new lease on life. And finally, their efforts had paid off when they found a buyer for the brewery. However, their joy was short-lived as they soon discovered that they were being evicted from the Rathskeller, the very building they had fought so hard to save.
Meg Duhr, the president of the federation, had been busy packing up boxes in the evenings and on weekends, preparing for the move to their new location. With the executive director on maternity leave, Meg, who did not receive any salary as the president, had taken it upon herself to oversee the relocation to the second-floor parish office of St. Stanislaus Church.
There were some objections from board members about moving to a religious institution, but the rent was free, and Meg saw it as a temporary solution until they could find a more suitable space. "This is all volunteer work at this point," she said, taking a break from her full-time job. "It's frustrating because we have so many other important issues to address, like the Riverview transit corridor and pedestrian safety. But instead, we're dealing with finding a new office space and moving mini-fridges. But I believe St. Stan's will be a great fit for us."
The unfortunate turn of events was caused by the new owner of the Rathskeller, Wilson Molina, who had recently acquired the building from a holding company. He had quoted the federation a monthly lease that they simply could not afford, and negotiations were unsuccessful. He was also renegotiating leases with all the other tenants in the building, and several, including the federation, were forced to move out.
"We'll be bringing in new tenants and renewing the leases for the existing ones," Molina said. "It's going to be a big change. If the tenants don't want to commit, we'll have no choice but to evict them."
It was a tough blow for the federation, who had hoped that their lease agreement with the original developer would protect them from any price hikes. They had agreed to free rent until 2029, but a closer look at the contract revealed that they had no legal protection against increased rent.
In 2011, the federation had received $1.9 million from the St. Paul Housing and Redevelopment Authority to purchase the Rathskeller building and the adjacent Keg House property, saving them from demolition. The Keg House was later sold, and the funds were used to renovate the building and remove hazardous materials.
The federation had also received around $2 million from various sources, including the city, to fund the building's redevelopment. They had returned the building to the HRA in 2015 to reduce holding costs, but continued to assist with maintenance and pre-development work.
In the midst of all this, they had been searching for commercial tenants for the Rathskeller, but their efforts were hindered by the arrival of Craig Cohen, the managing partner of Rathskeller Renaissance LLC. He had acquired three buildings on West Seventh Street, including the Rathskeller and the Keg House, and was now in charge of finding tenants for the office spaces above the iconic beer hall in the Rathskeller.
Unfortunately, things took a turn for the worse when Cohen sold the building to Molina, who had other plans for the space. And now, after almost a decade of fighting to save the Rathskeller, the federation was forced to move out and find a new home. But Meg and her team remained determined to continue their important work in the community, even if it meant moving to a temporary office space.
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