Sponsor: Property Management
Title
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Sale of the Ramsey County East Kellogg Property to LSBD Acquisitions, LLC
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Recommendation
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1. Approve the sale of, and Purchase and Sale Agreement for, the Ramsey County East Kellogg property (PID 062822110029), and all or any portions of the surrounding county land parcels (PIDs 062822110030, 062822110034, 062822110046, 06282214005, and 062822140011), with LSBD Acquisitions, LLC, in the amount of $4,000,000.
2. Authorize the County Manager to receipt proceeds from the sale of the Ramsey County East Kellogg property into the Capital Improvement Plan Holding Project.
3. Authorize the County Manager to approve and execute the Purchase and Sale Agreement and non-substantive amendments thereto, settlements, closing documents, and other related real estate documentation associated with the disposition of the Ramsey County East Kellogg property, in a form approved by the Ramsey County Attorney’s Office.
4. Authorize the County Manager to execute amendments that do not have a financial impact on the disposition of the Ramsey County East Kellogg property.
5. Authorize the County Manager to reallocate up to $180,000 from the remaining Ramsey County East Kellogg Building Improvement Project budget to the Ramsey County Metro Square Building Improvement Project budget for costs associated with the relocation of all building equipment, tools, and supplies necessary to completely vacate the building for the sale.
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Background and Rationale
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In late 2019 the decision was made to consolidate staff from the 160 East Kellogg Boulevard building into the Ramsey County Government Center (previously known as Metro Square) in downtown Saint Paul. External leases with several tenants at Metro Square were allowed to expire in 2022 and 2023, followed by major renovation of those spaces in 2023-2025 to accommodate the county staff relocation in early 2026.
On May 29, 2024, the Ramsey County East Kellogg Boulevard property was listed for sale through real estate broker CBRE. Numerous parties were interested in and toured the property, and several offers were received on the property between late 2024 and early 2026.
Ramsey County Board of Commissioners closed meetings were held to consider these offers and to develop the framework for a counteroffer for the sale of the property. The terms for pursuing a sale of the facility to LSBD Acquisitions, LLC, were subsequently established. A letter of intent was successfully negotiated in March 2026, and the purchase and sale agreement followed. Following a due diligence period, the sale is expected to close in late 2027. The building will be converted for residential use with 200 affordable rental units planned.
With the sale of the facility, approved Building Improvement funds in reserve for the building, up to $180,000, will no longer be required for their original purposes. Reallocation of these funds to the Property Management Government Center Building Improvement Project budget will contribute to covering the costs associated with the relocation of building equipment, tools, and supplies, and to ensuring that the building is completely vacated prior to the sale. There are no remaining projects associated with the East Kellogg property under the Capital Improvement Program.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The Ramsey County Board has adopted the Economic Competitiveness and Inclusion Plan that provides a guide for a comprehensive economic development strategy, centered on equitable growth and strengthening economic competitiveness. This strategy prioritizes inclusion in future investments and other actions related to housing, job creation, workforce development and place-based investments - <https://www.ramseycountymn.gov/your-government/projects-initiatives/economic-development-initiatives/economic-competitiveness-inclusion-plan>.
LSBD Acquisitions, LLC plans to convert the building to an estimated 200 affordable residential rental units. Their plan is for 1-, 2-, and 3-bedroom units priced between 30 and 70% AMI. Demand for housing at all levels is high in Saint Paul and Ramsey County. The plans for this property are consistent with the vision, mission, goals of the county - increasing the number of residential rental units and providing units of various sizes and at a range of affordability levels.
Community Participation Level and Impact
There is no community engagement associated with this property sale.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The disposition of the property will result in $4,000,000 of revenue not accounted for in the county’s 2027 Capital Improvement Plan. Revenue received from the disposition will be deposited into a Holding Project in the county’s Capital Improvement Fund. Future requests for use of the funds will be presented to the Ramsey County Board of Commissioners for consideration.
Building improvement funds in reserve for the building, up to $180,000, will no longer be required for their original purposes. These funds will be transferred to the Property Management Government Center Building Improvement Project budget for costs associated with the relocation of all building equipment, tools, and supplies necessary to completely vacate the building for the sale.
Last Previous Action
On February 17, 2026, the Ramsey County Board of Commissioners held a closed meeting to develop or consider offers or counteroffers for the purchase or sale of real property located at 160 East Kellogg Boulevard, known as the Ramsey County East Kellogg property, in Saint Paul, Minnesota (Resolution B2026-034).
On May 23, 2023, the Ramsey County Board of Commissioners authorized the County Manager to create a Holding Project in the Capital Projects Fund, related to the sale of the Ramsey County Care Center (Resolution B2023-079).
Attachments
1. Purchase and Sale Agreement with LSBD Acquisitions, LLC