A proposal to back expansion of a popular St. Paul eatery with a city subsidy moved forward Wednesday despite continuing objections from labor representatives that some workers at the restaurant would be paid less than a living wage.
The St. Paul City Council approved establishment of a tax-increment financing district (TIF) for Cossetta Italian Market and Pizzeria, but not before hearing criticism that decisions were moving too fast and the deal would invite a parade of business owners seeking city handouts.
The $10 million expansion would triple the size of the W. 7th Street restaurant, adding seating, rooftop dining, a wine cellar and bakery. The project is expected to provide 140 construction jobs and 100 new full-time equivalent jobs by 2015, according to documents Cossetta submitted to the city.
The financing package for Cossetta involves a $1.7 million forgivable loan and $387,000 in tax-increment financing.
The exemption to St. Paul's living wage ordinance -- $13.98 an hour for 2011 -- was actually approved in recent City Council action. But that didn't stop further criticism during Wednesday's public hearing.
"In our experience, many part-time workers support their families," said Bernie Hesse of the United Food and Commercial Workers Union Local 1189. In an interview after the hearing, Hesse said his 10,000-member union doesn't represent any of the Cossetta workers but has a wider concern.
"I'm afraid that everybody's going to be looking for a waiver," Hesse said of the city's ordinance that guarantees a living wage for workers. "We're saying if there's public money involved, there should be a public purpose."
Council Member Melvin Carter III offered an amendment to the TIF proposal that will require owner Dave Cossetta to pay a minimum of 75 percent of all of his full-time employees a living wage. The amendment was incorporated and the council voted to approve the TIF plan, which had been approved earlier by the same members in their role as the St. Paul Housing and Redevelopment Authority.
Further action is expected to take place next Wednesday.
In a separate issue, about 100 residents told the council they support a proposed ordinance, sponsored by Council Member Dave Thune, that would limit advertising signs on businesses. One of them, Joel Clemmer of Scenic St. Paul, showed photos of blinking signs advertising pornography.
"This is really about conveying a community standard," he said. Several other speakers endorsing the proposed ordinance said excessive pro-tobacco advertising was targeting low-income African-American youth. "It makes us feel insulted, used and targeted," said one girl.
But Michael Belaen of the St. Paul Area Chamber of Commerce objected to the proposal, saying it would make it harder for merchants to do business. He encouraged the council to further examine the issue. Thune asked to postpone further action for several months pending more study.
Kevin Giles • 651-735-3342
