Work on St. Paul homeless day shelter continues, despite lawsuit from neighbors

Construction on the former Red's Savoy Pizza near downtown St. Paul is slated to start next week, despite a lawsuit from neighbors aiming to stop a nonprofit from transforming the building into a homeless day shelter.

Last month, 14 businesses and neighbors sued the city and nonprofit Listening House, saying the opening of a shelter at 421 E. 7th St. will create a nuisance and cause "irreparable harm to business operations."

The suit also alleges that city leaders did not follow legal protocol when they amended city code to allow for homeless day shelters in more business and industrial areas and awarded Listening House a $1.4 million forgivable loan to help renovate its new space.

Ramsey County District Judge Leonardo Castro on Tuesday issued an order denying the plaintiffs' request for a temporary restraining order that would have forced Listening House to halt work on the building while litigation continues.

"We're glad the judge was able to see that it's hard to find anticipatory nuisance," said Molly Jalma, executive director of Listening House. "We absolutely want to move forward and work in partnership with all of St. Paul, including the people that were on the other side of this suit."

The lawsuit remains ongoing. An attorney for the plaintiffs did not immediately respond to a request for comment Wednesday.

Listening House was founded in St. Paul in 1983 and describes itself as "the living room of the homeless," offering guests space to shower, rest or eat during the day, when many overnight shelters are closed. Jalma said they also provide space for other social service providers — such as those focused on housing or mental health — to meet with guests.

Many of the neighbors' arguments reference Listening House's recent 18-month stint operating out of a former fire station in the West 7th neighborhood, where nearby businesses and residents said guests of the shelter trespassed, openly used drugs, damaged property and threatened passersby.

Neighbors of that shelter, which was dubbed Freedom House, sued the city and Listening House in late 2021. A Ramsey County District Court judge sided partly with the plaintiffs, writing in a May order that the city failed to comply with state-mandated notice and hearing requirements when the shelter opened.

Listening House moved out of the fire station in May, saying Freedom House had always been a temporary means of serving homeless residents during the COVID-19 pandemic. In late June, Listening House bought the former Red's Savoy, where the nonprofit plans to serve about 200 people daily.

Jalma said Listening House hopes to start operating out of its new site in February or March, adding that the lawsuit likely delayed the opening by about a month. The nonprofit is applying for an exemption from property taxes, which were $22,580 for the site this year.

Opponents of the shelter have launched a petition, designed billboards and sent mailers urging St. Paul residents to let "the city know that placing a known hazardous use in your neighborhood without proper notice and without public input was wrong."

"We are not fear-mongering, and we are not lacking compassion for the homeless," Patrick O'Neill, the plaintiffs' attorney, said at a court hearing Monday. "But we've been in this town a long time. And this is not the solution or the right location [for a shelter]."