It does need a lot of work, but mainly this location (specifically being farther south) has indeed seen sharp decreases in home value's over the years. Home values tend to go up as you go farther north towards lake Phalen.
Realtors can't comment on whether neighborhoods are "bad" or "good" do to our Fair Housing Laws, but what I may suggest is to define what is "bad" to you and do some research. The city of St. Paul has crime statistics on their website just like Minneapolis, and can be a good resource for you.
And as always, it is free to work with a Realtor. I do a lot of business on the East side, so if you have any questions feel free to contact me through my profile.
Realtor North/NE suburbs