Neighborhood STAR Program

Frequently Asked Questions

1. General Program Information

   What is the Neighborhood STAR Program?

   The Neighborhood Sales Tax Revitalization (STAR) Program offers grants to nonprofit, public, private, and for-profit entities seeking $5,000 or more in financial assistance for physical (capital) improvement projects in Saint Paul.

   The program is funded by sales tax revenue. In 1993, at the request of the City of Saint Paul, the Minnesota Legislature authorized the Saint Paul City Council to levy an additional sales tax of up to one-half cent on taxable sales within the city. Among the authorized uses of that tax revenue are commercial revitalization initiatives and tax generating activities that leverage private investments. STAR programs include Neighborhood STAR, which provides competitive funding for capital projects in Saint Paul neighborhoods, and Cultural STAR, which provides competitive funding for cultural organizations and events in Saint Paul.

   For Neighborhood STAR, the focus of this FAQ, awarded funds are limited to capital improvement projects, meaning permanently affixed, physical enhancements, sometimes referred to as “bricks and mortar” improvements. All funded projects must have an expected life of seven or more years.

   When can I apply for STAR funds?

   Neighborhood STAR funds are awarded through an annual competitive process. In 2024, applications open April 5, and are due by May 15 at 4 p.m. A program schedule is announced each year, and the grant cycle dates are regularly updated on the Neighborhood STAR website.

   How much money is available?

   The amount available to award each year changes based on sales tax collections and project closeouts. In 2024, we anticipate awarding between $2.5 and $3 million in grants.

   What is the average award amount?

   The average award amount is $50,000 or less, though if you need to ask for more, absolutely ask for what you need.

   How many applications do you anticipate?

   Each year, we typically receive between 65-80 eligible applications, with requests for funding exceeding available funds.

   When will funding decisions be made?

   Funding decisions will likely be finalized at a City Council meeting in August 2024.

   How are funding decisions made?

   The process for determining which projects are funded is as follows:

   • The Neighborhood STAR Board and staff review all eligible applications.
   • The Neighborhood STAR Board makes funding recommendations to the Mayor and City Council.
   • The Mayor and City Council make final funding decisions, with all funding approved at a City Council meeting, likely in the late summer/early fall.

   The Neighborhood STAR Board serves as the formal review body for proposals requesting Neighborhood STAR funds. The board carefully reviews each eligible project against the evaluation criteria as described in Part 4 of the Neighborhood STAR Program Guidelines to determine their funding recommendations for each project. The STAR Board then shares those recommendations with the Mayor and City Council for consideration and the City Council votes on final funding awards during a City Council meeting.

   Are any awards partial? Or do you fund the entirety of projects?

   In the past, projects have been funded both for the full or a portion of the requested amounts. Awards are determined in part by the amount of funding available, the number of proposals and the strength of the proposals received.

   Do you accept paper applications?

   We are currently only accepting applications through ZoomGrants. If you need access to technology to submit your application, you can go to any Saint Paul Public Library where computers and internet are available for public use. Library staff can provide technical assistance but are unable to assist you with filling out your application. If you have questions regarding the application, please reach out to STAR staff.

   Can I pay my application fee online?

   No. Please submit your application payment via mail.

   An application fee of $75 is required for proposals requesting $25,000 or less, and a $125.00 fee is required for each application requesting more than $25,000. All fees are non-refundable.

   A check should be made payable to the order of the City of Saint Paul and mailed to:

    Attn: Erin Lewis, Neighborhood STAR Program 
    City of Saint Paul Planning and Economic Development Dept.
    25 W 4th Street, Ste. 1300
    Saint Paul MN 55102

   Please indicate in the memo line that the check is for the NSTAR application fee.

2. Eligibility Guidelines

   If I got Neighborhood STAR funding last year, can I apply for the same project again this year?

   No. You may apply for Neighborhood STAR funding annually, but it must be for a different project or include a significant change in project scope from previous applications.

   If my project is already receiving Cultural STAR or Year-Round STAR funding, may I also apply for Neighborhood STAR funds for the same project?

   Yes, the Neighborhood STAR Board will review proposals for projects currently funded by other STAR programs (Cultural STAR or Year-Round STAR). Please make sure your application clearly indicates all funding sources for your proposed project, clearly articulates your need for additional STAR funding and that your proposal meets the eligibility criteria for the program for which you are applying.

   Can I apply for both Cultural STAR and Neighborhood STAR?

   Yes, though you may not apply to both programs for the same project. Please check the guidelines for each program to see what types of activities may be eligible for any particular STAR funding source.

   In the past, I have applied for a loan. Can I apply for a loan again this year?

   No. In 2024, we are only awarding grants.

   If I apply to the Neighborhood STAR program, am I still able to apply to other City programs?

   Yes, but only if it is not for the same project.

   If I own several businesses under one company, can I submit applications for each business?

   No. Entities may submit one application per year to the Neighborhood STAR program. However, you may request funding for multiple sites within your application.

   Will my application be denied if I list activities that are ineligible in my application?

   No, provided that some activities in your proposal are eligible for STAR funding. We appreciate a detailed proposal that gives us a full picture of your project. If there are items listed in your proposal that are not eligible for STAR funding, we will let you know what those items are and may ask you to update your application to either remove them, or update your application to show how those activities will be funded.

   Can churches apply?

   Yes, Churches and religious organizations are eligible to apply when in partnership with a neighborhood and/or community group and only with respect to a project that:

   • is non-sectarian and whose primary effect neither advances nor inhibits religion;
   • will make capital improvements for functions not associated with church-sponsored or religious type activities; and
   • is open and available to the public at large on a regular basis.

   These requirements are included in Part 2 of the program guidelines.

   Do restaurants qualify for Neighborhood STAR?

   Yes, restaurants qualify, so long as they are in Saint Paul. Part 2 of the Neighborhood STAR guidelines has more details about eligible applicants and activities.

   Can you apply if your business is in a location inside of a commercial property owned by someone else?

   Yes, if you have site control and can make capital modifications, then you are eligible to apply.

   If I am a tenant, can I apply or should the owner of the building apply?

   Commercial tenants are eligible to apply if they have permission from the property owner to make permanent capital improvements to the property.

   Individual homeowners, condominium, or townhome owners and/or the association representing them are ineligible to apply. While the renovation, rehabilitation, and/or construction of rental properties may be eligible, we encourage residential property owners to check first with the City’s Housing Division for available resources.

   Do projects need to be for brand new buildings or can funds be used to renovate rental offices?

   It does not need to be for brand-new buildings. Funds may be used for renovation.

   Are wall fixtures eligible?

   Permanently affixed capital improvements with a life expectancy of seven (7) years are eligible for STAR funding. If wall fixtures meet those standards, then they would be eligible.

   Can STAR dollars be used for upgrading parking lots?

   Yes.

   Are projects like boulevard planting or tree planting programs eligible for STAR funds?

   Beautification, trees, and shrubs are eligible for STAR funding so long as they are in public or private open space. That means that whatever site is using STAR funding must be open to the public. Therefore, projects that include planting or distribution of plants/trees to private properties (i.e., planting trees in private yards/homes) are not eligible for STAR funding. A boulevard planting that beautifies or improves a public space would be eligible, so long as those improvements were permanently affixed with an expected lifespan of 7+ years.

   May I use the funds to plant flowers?

   While beautification projects are eligible, including shrubs, trees, and landscaping work, STAR funding is intended for improvements that are permanently affixed with an expected life of 7+ years. Annual flowers would not be eligible since they have an expected life of just one year.

   Can I apply to the Neighborhood STAR program to fix up my house?

   No, individual homeowners are not eligible for funding from the Neighborhood STAR program. The City of Saint Paul has a Homeowner Rehab program, however, this is currently paused due to a high volume of applications. During this time, please check out the partner organizations that also offer home improvement programs.

3. Application Details

   How much should I ask for? Is there a maximum amount I can apply for?

   You may ask for any amount (there is no cap on the amount of money that you can ask for), but in order to ensure funds are shared across the city, it is unlikely that awards will be greater than $50,000.

   What if my project includes things that STAR won’t fund, like buying equipment? Should I still include that information in my proposal?

   Yes, please include these items if it helps to better illustrate the scope of the entire project. Just be sure to clearly indicate in your budget that STAR funds are only being requested for eligible activities and expenses.

   Do smaller businesses receive more favorable consideration?

   No. Proposals are evaluated based on the criteria and priorities outlined in the program guidelines, regardless of the size of your business.

   If I have a large project, should I break it down and only apply for part of my project?

   To ensure that funding is widely distributed throughout the city, it is unlikely that STAR awards will be more than $50,000. However, there is no funding cap, so we encourage applicants to apply for what they need so their project is completed successfully.

   Are applicants who have previously applied given funding priority if their requests were not selected in previous cycles?

   No.

   How can I provide proof that my business or organization is in good standing with the Minnesota Secretary of State?

   First, go to the Minnesota Secretary of State website. Then, use the “Search for a Business” button on the home page to search for your business or organization. Select your business from the search options and click on the link to get to the page indicating the name, address, other contact information, and whether your business or organization is in good standing. Simply take a screenshot or save a PDF of this page and submit it as an attachment to your application.

   Should I upload the contractor’s resume or the resume(s) of the organization’s management?

   You can upload either, or both. Please provide the resume(s) of the project manager, key management, and/or whoever will be overseeing the project. This provides insight into their capacity to complete the project successfully.

   Are UEI/CAGE Code required?

   No. 

   What if I don’t have all the attachments you’re asking for?

   To submit a complete application, you must submit a document for each attached marked as “required” in ZoomGrants. If you do not have a required document, simply attach a document explaining why you do not have the requested information. You must attach either the documentation requested or a note of explanation order to submit your application; if these fields are left blank you will not be able to submit your proposal.

   Attachments that are not marked as “required” are optional.

   If we’re looking to get funding for two separate scope of work projects, would it be better to submit two applications or combine them into one application?

   If the project scope is all tied to the same project address, then only one application should be submitted. Each entity may submit one application per grant round.

   Do I need to have my contractor selected prior to applying?

   No, you do not need to select a contractor prior to beginning your project, though vendor quotes are required as a part of your proposal. If you have not yet chosen a vendor or contractor, please consider working with businesses on CERT list, which includes certified small businesses, including Minority-Owned Business Enterprises, Small Women-Owned Business Enterprises, and Emerging Small Business Enterprises.

   Does the City help in identifying how to make bids or procure contractors?

   The City does not assist with procuring contractors or bids for applicants/grantees. However, if you need help finding contractors and vendors, a good place to start is the CERT list. To learn more about the CERT list, go to Central Certification CERT Program and click on the “How to Access the CERT Directory” link.

   Where will the recording for the applicant workshop be posted?

   Find the recording and slides on the program website.

   I’m trying to submit my application, but it won’t go through What should I do?

   First, double-check to ensure every question has a response, including the voluntary questionnaire section. If there is a question in the voluntary questionnaire section that you prefer not to answer, please enter N/A into your response.

   Also, please make sure that you have uploaded the appropriate documents that are highlighted as required. If you are unable to provide a required document, please provide a written explanation of why it cannot be provided. Blank documents or documents with “will submit upon request” are not acceptable and will result in your application being considered as incomplete.

4. Matching Funds

   How does match work? For example, if I have a project for $49,999, does it not need to be matched, whereas if I have a project for $50,001, it does?

   A request for $49,999 would not require a match; a request for $50,001 would require a 1:1 match of non-city resources. For funds to count toward your match, they would need to be incurred after the day on which you submit your proposal; most projects typically refer to their contract dates for incurring project costs for STAR-funded projects.

   What is the match requirement if requesting less than $50,000?

   No match is required for requests $50,000 or less.

   My request is for $75,000. How much does my match need to be?

   Any request over $50,000 requires a 1:1 match. That means that for a request of $75,000, your match requirement would be at least $75,000 in matching, non-city resources. Sources of match could be cash from private sources like loans or grants, or other public (non-city) funds. Please see Section 5 of the guidelines for additional information about eligible and ineligible sources of match.

5. Awardee Information

   When can I start my project?

   If awarded, STAR funds are available to recipients after the City Council has made a final funding decision. For this reason, we strongly encourage applicants to wait to begin their projects until funding has been approved by City Council and you have begun to work with a Project Manager on establishing a contract with the City. We further encourage applicants to wait to begin their projects until after they understand any pertinent compliance requirements for their project (see compliance information FAQ below for more details).

   We anticipate that funding announcements for the 2024 STAR grant round will be made in late summer/early fall, and that eligible project dates for the 2024 STAR round will be September 1, 2024 - August 31, 2026. Please note that these are anticipated dates, and that final funding decisions require the approval of both the Mayor’s Office and City Council. Final funding decisions will be communicated to applicants after the City Council has officially approved funding in the 2024 round.

   You may start your project ahead of a funding award, but any project expenses incurred before a funding decision from City Council will NOT be eligible for reimbursement with STAR funds. However, matching funds, if applicable to your project, may be used for project activities starting on the date on which you submit your application.

   When will I be able to use the money I am awarded?

   If you are awarded a grant, you may request reimbursement AFTER you have entered into a formal agreement with the City. Then your assigned City Project Manager will provide you with disbursement forms for requesting grant dollars within the dates of your contract. We anticipate that contracts will begin September 1, 2024.

   You cannot ask for reimbursement for expenses incurred prior to the funding decision. We encourage applicants to wait for final funding decision before beginning the STAR-funded pieces of your project. You may start other parts of your project, funded through other sources, any time. 

   If awarded, how do I access my STAR dollars?

   Neighborhood STAR is a reimbursement program. Typically, grantees may receive reimbursement for eligible expenses by submitting a reimbursement request with proper documentation. Funds may be disbursed if proper documentation is provided for incurred expenses that meet program guidelines.

   Is my grant transferrable? For example, if I complete my project before funding decisions are made, may I use the grant funds for a different project?

   No. Grant funds are limited to the entity and project described in your application.

   In some instances, if the scope of your project changes somewhat from the time of application to when your contract is being executed, you may be able to request approval from the STAR board for a revised scope.

   Expenses incurred prior to funding approval by City Council are not eligible for reimbursement, and you would not in that instance be able to transfer your grant funds to a different project.

   Grant funds may not be transferred to a different entity or organization, even if owned by the same applicant.

   If you are unable to use funds awarded to you in a given year, you may return the funds to the program and apply in future years.

   If I am awarded funds, does the money go to the contractor or the business?

   Neighborhood STAR funds are paid as disbursements or reimbursements, meaning an invoice or an expense must be created or incurred before funds may be paid to you. All funds will be paid to the applicant.

   How long does it take to get reimbursed?

   The amount of time for reimbursement varies. Once we have all the required documentation for reimbursement/disbursement, it takes 10-15 days for our accounting department to issue payment via mail. To expedite the process, it is helpful for awardees to keep careful records of expenses, invoices, and the use of matching funds, if applicable, so that proper documentation is available for your request. A project manager will be assigned to your project and can assist you with the reimbursement/disbursement process.

   How long do I have to get under contract once funds are awarded for my project?

   You have until the end of the calendar year following the year that your award is approved to get under contract. After that point, you may be asked to return the unused funds to the program.

   Getting under contract can be a lengthy process due to compliance and insurance requirements. We recommend that you work with your assigned Project Manager (from the Economic Development team) to get under contract as soon as you are able and ready, even if you do not submit a reimbursement request right away.

   Is my grant taxable?

   Please confer with your accountant about whether a Neighborhood STAR grant is considered taxable. The City of Saint Paul cannot provide tax advice.

6. Compliance Requirements

   How do I know if my project will have compliance requirements?

   Compliance requirements will vary from project to project because they are triggered by things like the amount of your request, the total cost of your project, or the type of business or organization you are. You can find more information about compliance requirements on the Department of Human Rights and Equal Economic Opportunity (HREEO) website, as well as contact information for general inquiries or questions about human rights, procurement, contract compliance and business development, and labor standards.

   If you are awarded funds, staff from our Human Rights and Equal Economic Opportunity department will meet with you for a pre-construction meeting. For this reason, it is strongly encouraged that you wait to begin your project until you fully understand the compliance requirements of your particular project.

   Do the insurance requirements apply to the contractors or just to the applicant?

   If you are awarded, the City’s insurance requirements will only apply to the grantee. However, we encourage all applicants to make sure their subcontractors carry insurance as a general practice.