Issuing the bonds was not possible until the banks agreed to provide a letter of credit for the bond issue. City officials called the partnership between Minnesota's two largest banks and traditional rivals "an unusual collaboration." US Bank is based in Minneapolis. Norwest Corp. of Minneapolis moved to San Francisco when it bought Wells Fargo, but retains strong ties to Minnesota.

The funds will be used to purchase and prepare undesirable property and transform it to what city officials say will be "prime real estate."

Housing 5000, an initiative announced in 2001 at the start of the administration of St. Paul Mayor Randy Kelly, is a pledge to create 5,000 Saint Paul housing units by the end of Kelly's four-year term in December 2005. If this goal is met, it is expected to result in $1 billion of new investment into housing developments and dramatically increase the city's tax base. Although it is a public initiative, its success is dependent on financial partners, developers, non-profit agencies, foundations, and others it would be impossible to sustain momentum, according to city officials.