Case Study - Saint Paul - Frogtown Rondo Neighborhoods

• This case study stems from a GIS & econometric report conducted a Macalester student in the spring of 2009. The report focuses on foreclosures in the Frogtown-Rondo neighborhoods of Saint Paul--estimating that 2007 foreclosures caused approximately $85 million in property value decline across the two neighborhoods (U-PLAN Report, 3).

• Background

• Frogtown-Rondo straddles the eastern end of University Avenue--a major economic corridor connecting Saint Paul and Minneapolis.  According to the US Census, the neighborhood are home to the largest percentage of non-native English speaking people in Saint Paul (Census.gov).  There are plans underway to install a Light-Rail Transit system along the corridor (LRT). 

• The Frogtown neighborhood has historically been an incubator for immigrant and transitional groups since the 1860s.  Predominantly German and Irish immigrants settled into the Frogtown area between the 1860s and 1880s.  Many of these immigrants built the cape cods and bungalows that still stand to this day.  More recently, immigrants from southeast Asia have come to settle in the area and invest in the housing stock.  

• Rondo is historically home to the city’s African American community.  When Interstate 94 sliced through the Rondo neighborhood, many residents had little choice but to reside in newly-constructed municipal housing projects.  Today, a significant number of buildings were built after 1960.  Most buildings are public housing projects.    

 (U-PLAN Report, 4)

• 2003 - 2008 Buildup
• This series of maps shows the buildup of foreclosures and their impact on property values from 2003 to 2008.  Accompanying each choropleth map is a table and chart displaying the same data.
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• The build-up maps of Frogtown-Rondo foreclosures tell an incredible story.  Average sale values peaked in 2005, caused primarily by the housing bubble.  Appraisers during this period were over-estimating the value of these homes.  In 2006, sale values began their downward slide, dropping 15%.  Sales began to drop as well as the housing market declined.  2007 saw a sharp increase in the number of foreclosures in the area, jumping 197% over the previous year.  In 2008, the effects of those foreclosures were felt in the home market.  Average sale value dropped 57%--from $190,000 to $80,000.
• The dramatic story of the Frogtown-Rondo is not at all unique.  There are several other Saint Paul neighborhoods--Dayton's Bluff, Payne-Phallen, North End--that experienced similar declines.  In fact, it was middle income neighborhoods that were affected the most by foreclosures (U-Plan Report, 20).   

Current Policy  summary of current policies in the form of legislation, programs, and funding

• City: The City is applying for $45 million in Neighborhood Stabilization Program money to rehab or demolish the vacant properties in Frogtown-Rondo. 
• District Council 7: The District Council for the Frogtown-Rondo neighborhood has been hosting community summits to address the problem of vacant properties.