Saint Paul: Economy

Major Industries and Commercial Activity

The principal economic sectors in Saint Paul are services, wholesale and retail trade, manufacturing, and government. Along with Minneapolis, Saint Paul is the site of one of the largest concentrations of high-technology firms in the United States and ranks among the major commercial centers between Chicago and the West Coast. The city is also among the two or three largest livestock and meatpacking centers in the nation. Sixteen of the Fortune 500 largest U.S. corporations are headquartered in the Twin Cities. The area is also home to 30 Fortune 1000 companies and several of the world's largest private companies. Local companies are involved in the manufacture of super computers, electronics, medical instruments, milling, machine production, food processing, and graphic arts.

Items and goods produced: hoists and derricks, rugs, computers, food products, medical products, machinery, electronic materials, automobiles, appliances, chemicals, abrasives, beer, printed products

Incentive Programs—New and Existing Companies

Various programs are available for small business incentive and expansion; among them are the Small Business Development Loan Program, offering fixed-rate low-interest direct loans, and tax credits for corporations that assist small businesses.

Local programs

The City of Saint Paul's Department of Planning and Economic Development offers a variety of services to assist new or expanding businesses; services include small business financing and loan guarantees/direct loans.

State programs

State business tax incentives include research and development credits, foreign income deductions, and sales tax exemptions and reductions. In addition, the state of Minnesota offers, through a network of five job-training programs, assistance to businesses in locating and training employees.

Job training programs

The City of Saint Paul's Business Resource Center offers a variety of services including information, technical assistance, financing, site searches, and job training. Other programs are available through area colleges and universities.

Development Projects

Downtown Saint Paul has undergone extensive revitalization, with investment in development projects exceeding $1 billion.

Saint Paul continues to profit from the Neighborhood Development Program, a unique redevelopment initiative that has gained the city national recognition. Since 1997, the Saint Paul Port Authority has partnered with neighborhood organizations to select brownfield sites for redevelopment. Through creative use of public and private funding, it has completed several projects, replacing brownfields with light industrial manufacturing facilities and donating land for designated open spaces. Saint Paul funds its brownfield projects with a combination of general obligation bonds, tax increment financing, local sales tax revenues, municipal grants, loan guarantees, Economic Development Administration grants, Community Development Block Grants, Enterprise Community grants, and EPA Brownfields Pilot grants.

The Saint Paul Port Authority has several projects underway. The Great Northern project will clean up and develop 13 acres of brownfield formerly owned by the Great Northern Railroad Shops and the Saint Paul Foundry. Twenty-two acres are already completed; the resulting business center is expected to create more than 500 new jobs. Another twenty-two acres along the Mississippi River are part of the River Bend project; 10 acres of land have been cleaned up, and 120,000 square feet of space has been completed as of early 2005. The $120 million Westminster Junction project is focused on health care; facilities include a new home for Regions Hospital outpatient clinic.

The Phalen Corridor Initiative will bring jobs, housing, transit, workforce, and prosperity to Saint Paul's east side; investors have already invested $570 million in the green-space multi-use creation.

Economic Development Information: Saint Paul Port Authority, Suite 1900 Landmark Towers, 345 St. Peter St., Saint Paul, MN 55102

Commercial Shipping

Saint Paul is a Foreign Trade Zone with duty free facilities. The ports of Saint Paul and Minneapolis are served by nine barge lines operating on the Mississippi, Minnesota, and St. Croix rivers; together the ports handle more than 11 million tons of cargo annually. Considered one of the largest trucking centers in the United States, the Twin Cities are a hub for over 150 motor freight companies that provide overnight and four- to five-day delivery throughout the country. Six rail lines are integrated with both the United States and Canadian railway systems. Air transportation is available at Minneapolis-Saint Paul International Airport from 16 air cargo carriers and 37 air freight forwarders.

Labor Force and Employment Outlook

Local educational institutions assure employers of well-trained workers, particularly in high-technology areas, where engineers, scientists, researchers, and technicians are in demand. The highest growth is expected in the areas of healthcare, technical and social services, personal care, construction, and computer professional occupations. Current projections indicate that workforce participation in the Twin Cities areas should expand faster than population growth.

The following is a summary of data regarding the Minneapolis-Saint Paul metropolitan area labor, 2004 annual average:

Size of non-agricultural labor force: 1,738,000

Number of workers employed in . . .

mining and construction: 82,800

manufacturing: 202,700

transportation and utilities: 335,900

information: 43,000

financial activities: 140,500

professional and business services: 245,900

educational and health services: 216,100

leisure and hospitality: 154,500

other services: 75,800

government: 240,300

Average hourly earnings of production workers employed in manufacturing: $17.59

Unemployment rate: 4.2% (February 2005)

Cost of Living

The Twin Cities' region has one of the lowest costs of living among the 25 largest cities in the United States. The cost of living is reported as being near the national average; the cost of housing and food is below the national average.

The following is a summary of data regarding several key cost of living factors in the Saint Paul area.

2004 (3rd Quarter) ACCRA Average House Price: $296,846 (Minneapolis)

2004 (3rd Quarter) ACCRA Cost of Living Index: 109.3 (Minneapolis/St. Paul) (U.S. average = 100.0)

State income tax rate: Ranges from 5.35% to 7.85%

State sales tax rate: 6.5%

Local income tax rate: None

Local sales tax rate: None

Property tax rate: 17.0% of first $68,000 of market value; 27.0% over $68,000

Economic Information: Saint Paul Area Chamber of Commerce, 401 North Robert Street, Suite 150, Saint Paul, Minnesota 55101; telephone (651)223-5000; fax (651)223-5119

Saint Paul: Recreation

Sightseeing

Landmark architectural structures provide unique space for Saint Paul's arts institutions. The state Capitol was designed by Cass Gilbert in 1904 and blends Minnesota stones with imported marble; paintings, murals, and sculptures represent the state's history. A trip to Saint Paul might include a visit to Saint Paul Cathedral, which is modeled after St. Peter's in Rome. Landmark Center, once a Federal Courts Building, is now the city's arts center and winner of a national restoration award.

Historic Fort Snelling has been restored to its original state; costumed guides tell about the fort's early history as the first non-Native American settlement in the Saint Paul area. The Alexander Ramsey House was the home of Minnesota's first territorial governor; tours of the home are available year round. Reflecting the opulence of Saint Paul's most famous nineteenth-century railroad baron, the 32-room James J. Hill House was at one time the largest home in the Midwest. A 5-mile stretch of Summit Avenue is lined with Victorian homes. A few blocks away, at 481 Laurel, is writer F. Scott Fitzgerald's birthplace (not open to the public).

Como Park, Zoo, and Conservatory features a children's zoo, a large cats house, an aquatic house, and a new visitor's center. Town Square Park in Saint Paul Center, the largest indoor public park in the world, cultivates more than 1,000 plants and trees. The Children's Museum features hands-on exhibits.

Arts and Culture

Like Minneapolis, Saint Paul enjoys a national reputation in the performing arts. The Ordway Center for the Performing Arts is the home of the Saint Paul Chamber Orchestra and the Minnesota Opera Company. The Landmark Center is a Romanesque Revival building whose south tower is modeled after Boston's Trinity Church. The Schubert Piano Club and Keyboard Instruments Museum is located in the center. The American Museum of Art recently opened its Riverfront Gallery on Kellogg Boulevard; the museum houses contemporary and Asian art as well as sculpture, paintings, photography, and drawings.

The Science Museum of Minnesota features the Dinosaurs and Fossils Gallery, Omnitheater and a 3D cinema representing the latest in high-tech entertainment. At the Mississipi River Gallery, visitors can unlock the secrets of locks and dams, explore an authentic Mississippi River towboat, and view the river from the museum's balcony. At the Human Body Gallery, visitors can view their own cells through a microscope; in the Experiment Gallery, visitors can make a tornado and create waves in the wave tank. The Minnesota History Center presents interpretations of the state's history through exhibits and material objects.

Saint Paul's theater companies include the Park Square Theater, which concentrates on classic plays; the Great North American History Theater, which presents local historical drama; and Penumbra Theater, a professional African American theater company.

Arts and Culture Information: Metropolitan Regional Arts Council, 2324 University Ave. W., Saint Paul, MN 55114; telephone (651)645-0402

Festivals and Holidays

The Saint Paul Winter Carnival is the largest winter celebration in the nation. This annual festival, held the last weekend in January through the first weekend in February, features parades, ice and snow sculpture, fine arts performances, a ball, unusual winter sporting events, and a re-enactment of the legend of King Boreas. Saint Paul hosts the largest celebration of St. Patrick's Day outside of New York City. The Festival of Nations in late April celebrates the food and cultures of more than 50 countries. Grand Old Day on an early June Sunday begins with a parade on a one-mile stretch of Grand Avenue and includes entertainment, food, and crafts; the celebration is the largest one-day street fair in the Midwest. Taste of Minnesota on the Fourth of July weekend is held on the Minnesota State Capitol Mall and concludes with a fireworks display on Independence Day. The Minnesota State Fair, one of the largest state fairs in the country, runs for 10 days ending on Labor Day at the Minnesota State Fairgrounds.

Sports for the Spectator

The Twin Cities are home to five professional sports teams. The Minnesota Vikings compete in the National Football Conference in the Central Division. The Minnesota Twins are in the Central Division of baseball's American League. The Minnesota Timberwolves are in the National Basketball Association. The baseball and football teams play home games in the Hubert H. Humphrey Metrodome in downtown Minneapolis. The Timberwolves compete at the Target Center in downtown Minneapolis. The Minnesota Wild of the National Hockey League play in the new 650,000 square foot Xcel Energy Center. Women's National Basketball Association team the Minnesota Lynx came to the Twin Cities in 2000.

University of Minnesota teams compete in the Big Ten in football, baseball, hockey, and basketball. Thoroughbred horses run at Canterbury Downs Racetrack in Shakopee in a mid-May to mid-August season.

Sports for the Participant

The Rice & Arlington Sports Dome hosts softball, soccer, and baseball leagues. In addition, the dome is used for private lessons, clinics, parties, and batting practice. The playing area of the dome features a full-size softball field with a 330-foot, straight-away center and two soccer fields that are 50 yards wide by 60 yards long. The soccer fields can also be played on lengthwise, creating a field 100 yards long by 60 yards wide.

Outdoor sports in the Saint Paul area include fishing, swimming, boating, and water skiing in the summer and ice fishing, ice skating, cross-country skiing, and hockey in the winter. The Twin Cities Marathon is an annual event that attracts as many as 10,000 runners and is usually held the first or second Sunday in October.

Shopping and Dining

Saint Paul boasts the world's longest public skyway system; it consists of 5 miles of second-level walkways that link downtown hotels, restaurants, stores, and businesses. The Saint Paul World Trade Center is four square blocks of more than 100 retail and dining establishments; at the center is the Town Square Park, which is an enclosed, year-round park. The Farmers Market is an old-world open market selling home-grown foods and crafts on weekends. Historic Grand Avenue is lined with private homes, retail shops, boutiques, and antique stores. A local shopping square is housed in a turn-of-the-century railroad building. There are antique stores as well as specialty stores promoting Minnesota goods located throughout the Twin Cities.

Saint Paul restaurants stress American home cooking and Midwest cuisine; ethnic choices range from Afghan and Vietnamese menus to continental and French restaurants. Fresh fish, prime rib, and 16-ounce steaks are local favorites. Dinner cruises on the Mississippi River are offered. The quaint river town of Stillwater, 25 miles east of Saint Paul, also offers dining and shopping opportunities.

Visitor Information: Saint Paul Convention and Visitors Bureau, 175 West Kellogg Boulevard, Suite 502, Saint Paul, MN 55102; telephone (651)265-4900; toll-free (800)627-6101. Explore Minnesota Tourism, 100 Metro Square, 121 7th Place East, Saint Paul, MN 55101-2112; telephone (651)296-5029; toll-free (800)657-3700

Saint Paul: Education and Research

Elementary and Secondary Schools

Public schools in Saint Paul are administered by Independent School District 625, the second-largest school system in Minnesota. A superintendent is chosen by a seven-member, nonpartisan board of education.

The following is a summary of data regarding the Saint Paul public schools as of the 2004–2005 school year.

Total enrollment: 42,000

Number of facilities

elementary schools: 50

middle schools: 9

senior high schools: 8

other: 1 open school; 1 special education school; 87 other programs including a creative arts high school, area learning center, and adult education center

Student/teacher ratio: not available

Teacher salaries

average: $44,745 (Minnesota, 2002-2003)

Funding per pupil: $8,644

A variety of private schools in Saint Paul enroll more than 12,000 students.

Public Schools Information: Saint Paul Public Schools, 360 Colborne Street, Saint Paul, MN 55102; telephone (651)293-5100

Colleges and Universities

Saint Paul is home to several colleges and universities. The University of Minnesota–Twin Cities operates a main campus in Saint Paul as well as in Minneapolis. An important research institution with a total enrollment of more than 45,000 full-time students, the university awards a full range of undergraduate and graduate degrees in 250 fields of study, including first-professional degrees in dentistry, law, medicine, pharmacy, and veterinary medicine. University of Minnesota faculty and graduates have been awarded 12 Nobel Prizes for physics, medicine, chemistry, economics, and peace.

Metropolitan State University, part of the Minnesota State University system, offers undergraduate and graduate programs in liberal arts, nursing, and management; the administrative offices of Minnesota State University are located in Saint Paul. The William Mitchell College of Law is a privately operated professional school devoted solely to the study of law. A fine arts curriculum leading to a baccalaureate degree is offered by the School of the Associated Arts.

Hamline University, affiliated with the United Methodist Church, provides undergraduate and graduate programs in such areas as chemistry, law, music, and teacher education. Bethel University is a four-year institution associated with the Baptist General Conference. The four-year Concordia College is operated by the Lutheran Church-Missouri Synod. Lutheran Northwestern Seminary is the divinity school for the American Lutheran Church and the Lutheran Church in America. Other church-related colleges include Northwestern College and Macalester College, which is associated with the Presbyterian Church. The College of St. Catherine, the College of St. Thomas, and the Saint Paul Seminary School of Divinity are Roman Catholic institutions.

Vocational and technical training is available at community colleges and specialized schools in Saint Paul and Minneapolis; among them is Saint Paul Technical Vocational Institute. In all, the Twin Cities support 13 colleges and universities, 6 state-supported comprehensive community colleges, and 9 publicly supported technical institutions.

Libraries and Research Centers

Nearly 70 public and private libraries are based in Saint Paul. The Saint Paul Public Library system includes a main facility, 12 branches, and a bookmobile. The library, which is a depository for federal and city documents, houses more than 1 million volumes as well as 2,000 periodicals, and CDs, maps, and other items. Special collections include oral history and the history of the city of Saint Paul. Adjacent to the Saint Paul Public Library is the James J. Hill Reference Library; its business and economic collection is open to the public. The Minnesota Historical Society maintains an extensive reference library with subject interests in genealogy, Minnesota history, and Scandinavians in the United States among other areas. Most colleges and universities in Saint Paul operate campus libraries, the largest being the University of Minnesota system, which consists of a main facility and four department libraries; its collection numbers more than four million catalogued volumes.

Among the larger state agency libraries in the city are the Minnesota State Law Library and the Minnesota Legislative Reference Library. Other specialized libraries are associated primarily with corporations, churches, and hospitals.

Research centers in the Twin Cities affiliated with the University of Minnesota include the Center for Urban Design; the Hubert H. Humphrey Institute of Public Affairs; the Industrial Relations Center; the Metropolitan Design Center; the Northern Tier Technology Corridor; the Underground Space Center; the Immigration History Research Center; and the Minnesota Center for Twin and Adoption Research.

Public Library Information: Saint Paul Public Library, 90 West Fourth Street, Saint Paul, MN 55102-1668; telephone (651)266-7000; fax (651)292-6660

Saint Paul: History

River Fort Draws Traders, Settlers

Jonathan Carver, a New Englander, was attempting to find a northwest passage to the Pacific Ocean in the winter of 1766 when he stopped near the future site of Saint Paul, where he discovered a Native American burial ground (now known as Indian Mound Park). When the Louisiana Purchase became part of United States territory in 1803, federally-financed expeditions explored the new territory, which included present-day Saint Paul. In 1805 Lieutenant Zebulon M. Pike camped on an island later named Pike Island and entered into an unofficial agreement with the Sioux tribe for land at the confluence of the Mississippi and Minnesota rivers; also included in the pact was land that became the site of Fort Snelling.

In 1819, Colonel Henry Leavenworth built an army post on the Minnesota River on a spot named Mendota south of present-day Saint Paul; the next year the fortress was moved across the river where Colonel Josiah Snelling constructed Fort Anthony, which was later renamed Fort Snelling. The presence of the fort allowed an Indian agency, fur trading post, missionaries, and white settlers to gain a foothold there. Settlers living on federal land were eventually expelled, and Pierre "Pig's Eye" Parrant, a French Canadian, joined others in building a settlement named after Parrant's colorful nickname near Fort Snelling. In 1841, Father Lucian Galtier named a log chapel in Pig's Eye after his patron saint, Saint Paul, and persuaded others to accept the name for their emerging community, as well.

Saint Paul was platted in 1847; two years later it was named the capital of the Minnesota Territory and incorporated as a town. Saint Paul received its city charter in 1854 and when Minnesota became a state in 1858, the city retained its status as state capital. By the start of the Civil War, 10,000 people lived in Saint Paul.

Rail Transport and New Residents Shape City

Two men had major roles in the development of Saint Paul in the post-Civil War period. The railroad magnate James J. Hill used the city and the Great Northern Railroad to accumulate great individual wealth and to wield immense political power. Hill envisioned his adopted city of Saint Paul as the base for an empire in the northwest, built on his railroad holdings. The other major influence on Saint Paul's development was Catholic Archbishop John Ireland, a native of Ireland who settled in Saint Paul at the age of fourteen and, as an adult, established a religious base for community endeavors. He brought thousands of destitute Irish families to Saint Paul, where they relocated in colonies and started a new life. The Catholic influence in the shaping of Saint Paul can be traced to the pioneering efforts of Archbishop Ireland. Another notable figure who called Saint Paul home is F. Scott Fitzgerald.

In the nineteenth century a number of distinct population groups contributed to the character of Saint Paul. One was from the New England states and New York; these transplanted Easterners brought their educational values and business experiences to the prairie community. Another consisted of immigrants from Germany and Ireland who flocked to the United States by the tens of thousands. Among the professional groups were German physicians and Irish politicians and lawyers. German musical traditions and beer-making practices found a new home in Saint Paul. Scandinavians also immigrated to the city, but in fewer numbers than those who settled in neighboring Minneapolis.

In the twentieth century, Saint Paul erected fine buildings like the state capitol and developed many cultural institutions, including theaters; a notable peace monument in the concourse of the city hall; the state historical society building, containing a museum and library; and the Saint Paul Arts and Science Center. Saint Paul is also home to many educational institutions. Although its Twin City, Minneapolis, surpassed Saint Paul shortly before the turn of the twentieth century as the larger, wealthier, industrially more powerful of the two cities, Saint Paulites believe their city possesses more character and charm. Contributing to that charm are a good symphony orchestra and the stately mansions of former railroad and timber barons along Summit Avenue.

Historical Information: Minnesota History Center, 345 Kellogg Blvd W., Saint Paul, MN 55102; telephone (651)296-6126

Saint Paul: Communications

Newspapers and Magazines

Saint Paul's major daily newspaper is the Saint Paul Pioneer Press. Other newspapers appearing daily in the Twin Cities area are the Minneapolis Star Tribune, Minnesota Daily, and Finance and Commerce. Minnesota Monthly is a magazine focusing on topics of state and regional interest.

Approximately 60 magazines, journals, and newsletters originate in the metropolitan area, covering topics such as law, furniture, religion, feminist issues, and agriculture. Member or special interest publications for professional associations, religious organizations, trade groups, and fraternal societies are also based in the city.

Television and Radio

Two commercial and two public television stations broadcast from Saint Paul; cable service is also available. Four FM and two AM radio stations furnish music, news, and information programming. The headquarters of the Minnesota Public Radio Network, an affiliate of National Public Radio, is located in Saint Paul. American Public Media produces "Saint Paul Sunday," a popular program that is broadcast live nationally from Saint Paul.

Media Information: Saint Paul Pioneer Press, 345 Cedar Street, Saint Paul, MN 55101; telephone (651)222-1111.Minnesota Monthly, Minnesota Monthly Publications, Inc., 730 Second Ave., Minneapolis, MN 55402; telephone (612)371-5800

Saint Paul Online

City of Saint Paul home page. Available www.ci.stpaul.mn.us

Mall of America home page. Available www.mallofamerica.com

Minnesota Department of Trade and Economic Development home page. Available www.deed.state.mn.us

Minnesota Historical Society home page. Available www.mnhs.org

Saint Paul Area Chamber of Commerce home page. Available www.saintpaulchamber.com

Saint Paul city guide online. Available www.saint-paul.com

Saint Paul Convention and Visitors Bureau home page. Available www.stpaulcvb.org

Saint Paul Pioneer Press home page. Available www.twincities.com

Saint Paul Public Library home page. Available www.st.paul.lib.mn.us

Selected Bibliography

Brin, Ruth F., Bittersweet Berries: Growing Up Jewish in Minnesota (Holy Cow Press, 1998)

Cleary, Edward J., Robin Desser (ed.), Beyond the Burning Cross: A Landmark Case of Race, Censorship and the First Amendment (Vintage Books, 1995)

Fitzgerald, F. Scott, Taps at Reveille (New York: C. Scribner's Sons, 1935)

MacCabee, Paul, John Dillinger Slept Here: A Crooks' Tour of Crime and Corruption in St. Paul, 1920-1926 (Minnesota Historical Society)

Millett, Larry, Lost Twin Cities (Minnesota Historical Society)

Valdes, Dionicio Nodin, Barrios Nortenos: St. Paul and Midwestern Mexican Communities in the Twentieth Century (University of Texas Press, 2000)