St. Paul: Aldi seeks permits to move into former Lunds and Byerlys downtown

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After months of keeping hope alive that rumors of a grocery store revival are true, downtown St. Paul residents have received the closest thing to official confirmation that discount grocer Aldi is moving into the former Lunds and Byerlys space at 10th and Minnesota streets.

The German grocer, which already has a sizable footprint in St. Paul, pulled at least five permits with the St. Paul Department of Safety Inspections in recent weeks for work at 115 10th St. East related to building renovations, street light improvements and signage. The latest permit requests, filed Feb. 18 and 19, call for projecting signs, and a building permit applied for on Jan. 9 describes a “remodel of existing space to become a new ALDI retail grocery store.”

That still leaves some unanswered questions about the path ahead.

The expected renovation dates run from March 16 through June 22, according to the permit application, but no general contractor is listed on materials publicly available on Monday, which indicates the contractor is “TBD,” or “to be determined.” The building permit itself has yet to be issued.

Aldi did not return a reporter’s request for comment.

Aldi, which is reportedly still attempting to pin down financing for what will be more than a $2.2 million project, has been mum for months on its plans to open in downtown St. Paul, despite residents of the Penfield apartments — which adjoins the former Lunds space — and other downtown residents pestering construction contractors for details whenever they appear on site.

“The fact that they’re going to have items at the range of price points that downtown residents have been asking for less than a year (after Lunds exited) … all bodes really well,” said St. Paul City Council Member Rebecca Noecker, who said she had “conversations” with Aldi and “answered questions that they’d had related to safety and related to community support.”

“We’ve got a brand new Pedro Park,” Noecker added. “A once-in-a-century reconstruction of Robert Street. Brand new bus rapid transit. Being a booster, responding to their concerns, that’s really been my role.”

Lunds, which opened at 10th and Robert streets in 2014, closed permanently in March of last year, a further setback to a downtown that has experienced the loss of significant retail, office and residential tenant spaces since the outset of the pandemic in 2020. With its departure, downtown St. Paul has been left without a grocery store, and even convenience store options like the two-level Walgreens pharmacy on Wabasha Street are limited in number for an increasingly residential downtown.

There are four existing Aldi locations in St. Paul, including University Avenue, West Seventh Street, Clarence Street and Suburban Avenue.

In response to a reporter’s inquiry on Monday, St. Paul Mayor Kaohly Her issued a written statement: “Bringing a grocery store back downtown was one of my top priorities and a huge need we heard from residents. I want to thank Aldi for choosing to invest in our city and contributing to our vision of revitalization. My administration will continue making it easier for businesses and residents to put down roots here and ensuring that being downtown is a vibrant, welcoming, and rewarding experience for everyone.”

Joe Spencer, president of the St. Paul Downtown Alliance, said downtown’s population has continued to grow, despite some “scary moments” around the loss of Lunds and Byerlys and the collapse of Madison Equities, a major downtown property owner. He pointed to the recent renovations of Landmark Tower and the Stella, which is soon to open.

“It’s very exciting,” said Spencer, who has hosted a series of “Reimagine Downtown” events to court public feedback on needed improvements and amenities. “The number one thing everyone has said across the board is they want a grocery store. This is just a great day for downtown.”

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