Gander signed a 10-year lease with Frauenshuh Cos., which manages and leases the building, now called 180 East Fifth. Gander Mountain comes at a critical time for Downtown St. Paul which has seen its office vacancy rate hit a decade-high 25%, according to United Properties, a Bloomington, MN-based commercial real estate firm. The empty space is due to a sluggish economy, corporate consolidations and relocations, and has appeared despite the opening of the Xcel Energy Center and the conversion of several buildings into housing.

While it's a boost for the market, it will take more than that to turn things around, according to real estate officials. The city may tap its strategic investment fund, which helps lure companies to St. Paul by offering up to $3,000 per job they bring to the city, including those added as the firm grows.

City officials have offered about $700,000 — $3,000 for each of the 233 jobs Gander plans to bring to St. Paul. The company would get another $3,000 per job added during the next five years, up to a maximum of $1.2 million. The subsidy would come in the form of a "forgivable loan," under which the loan would not have to be repaid if the company commits to stay a certain length of time.