Mega-projects will headline 2018

– Finance & Commerce

Allianz Field

Size: 34 acres

Cost: $200 million for stadium, surrounding development unknown

Owner: MUSC Holdings LLC owns the stadium, RD Management owns the retail center to the north.

Description: Construction of the Minnesota United soccer club’s new stadium in St. Paul is moving at a blistering pace and should be done in February or March of 2019.

The stadium is on the south side of a superblock bounded by Interstate 94 to the south, Snelling Avenue to the west, and University Avenue to the north. It will anchor redevelopment of the Midway Shopping Mall, which sits immediately to the north. Demolition of the aging retail center has already started, and in November the owner, New York-based RD Management, gave notice that it would begin recruiting developers to fill out the site.

Possible uses may include offices, housing and new commercial space.

Southwest Light Rail Transit project

Size: 14.5 miles

Cost: $1.858 billion

Owner/developer: Metropolitan Council

Expected completion: 2023

Description: Like 2016, 2017 proved to be a tumultuous year for the Twin Cities’ marquee transit project, a proposed 14.5-mile light rail line running from Eden Prairie to downtown Minneapolis.

In September, the Metropolitan Council threw out all of its contractor bids for the project and started over, on the grounds that all the bid packages were too high or not responsive to bid documents because of subcontractor “eligibility issues.” The Met Council barred 36 subcontractors from working on the project because they worked on the project’s design phase, but reversed its decision just before Christmas after industry groups objected to the measure.

Meanwhile, the project hit another snag when the Federal Transit Administration determined that a proposed corridor protection wall between the Southwest tracks and freight railroad tracks in Minneapolis would “adversely affect” a historic railroad district. The agency ordered the Met Council to do a “supplemental environmental assessment” to consider potential environmental impacts and to allow time for “public review and comment.”

Given the circumstances, the Met Council has extended the bid date for the $1.858 billion project’s civil construction package from Jan. 9 to May 3, which means light rail service won’t begin until 2023.

The Ford site

Address: 2180 Ford Parkway, St. Paul

Size: 122 acres

Cost: Unknown

Owner: Ford Motor Co.

Expected completion: Unknown

Description: In spite of strident and well-organized opposition by some Highland Park residents, Ford site redevelopment efforts kicked into high gear in 2017, setting the stage for a developer bidding war in 2018.

In September, the St. Paul City Council voted 5-2 to approve a master zoning plan for the 122-acre site tucked between the Mississippi River bluffs and Cretin Avenue, which was once home to a Ford Motor Co. assembly plant. The plan calls for 2,400 to 4,000 units of new housing, ranging from townhouses and carriage homes to apartment towers. Retail and office uses will dominate the stretch of land immediately south of Ford Parkway.

In mid-December, Mayor Chris Coleman announced that Ford Land would begin marketing the site to master developers through its chosen brokerage, the Minneapolis office of Los Angeles-based CBRE.

Construction is expected to start as early as 2020. It will take 15 to 20 years to build out the site completely.

Minnesota Vikings headquarters and mixed-use development

Address: Dodd Road and Lone Oak Parkway near Interstate 494 in Eagan

Size: 200 acres

Cost: Estimated $500 million

Owner: Minnesota Vikings LLC

Project team: Kraus-Anderson, Crawford Architects, Garden Homes Development

Expected completion: Ten to 15 years

Description: Work at the new Minnesota Vikings practice facility and headquarters is entering the final stretch, and with that the team and its owners will soon be turning their attention to encouraging additional development at the site.

The Vikings’ new facility covers 44 acres and will include five outdoor fields, a 6,000-seat outdoor stadium, expansive indoor and outdoor training areas, a team auditorium, a media center and office space. It is expected to be complete by spring 2018.

Now the question is what will occupy the remaining 160 acres. Vikings owners Zygi, Mark and Leonard Wilf want to build out the rest of the site with corporate offices, retail, a hotel, restaurants, and about 1,000 apartments.

Destination Medical Center

City: Rochester

Size: Several million square feet in six downtown subdistricts

Cost: $5.6 billion

Owner/developer: Various, led by the Mayo Clinic

Expected completion: 20-year build-out

Description: Rochester’s Destination Medical Center development reached several milestones in 2017, teeing up for a busy year to come.

In March, city officials announced that the amount of private investment in the district had topped $200 million, the number needed to tap into new state funds. The amount did not include several high-profile developments in the works for the area, which include a $115 million mixed-use tower by Minneapolis-based Alatus LLC, a $38 million complex planned by Minnetonka-based Opus Development Co. and Titan Development of Rochester and several new hotels.

Then in early November Golden Valley-based M.A. Mortenson Co. broke ground on a key piece of the redevelopment effort, Discovery Square, a $35 million, 90,000-square-foot building that will rise on an entire block bounded by Fourth and Fifth streets southwest and Second and Third avenues southwest.

The Mayo Clinic-anchored building will contain laboratory space, offices and a small retail component. It is hoped that Discovery Square will act as a catalyst in the area, spurring further development.

Estelle, 2.0

Address: Unknown

Size: Unknown

Cost: $200 million

Owner: Ryan Cos. US Inc./Arcadia LLC.

Expected completion: Unknown

Description: In October the Edina City Council rejected the Estelle, a project put forward by developer Luigi Bernardi and Ryan Cos. US Inc. that called for two tall luxury condominium towers at the intersection of France and 69th Street West.

The council was motivated by resident concerns about the stature of the towers, which would have stood 20- and 24-stories high.

It was a blow to the development team, which described the project as a “slam dunk” when it debuted in May. However, Bernardi has vowed to find a new site in a different city for the project, which will likely be scaled down to just one structure.

Where precisely the Estelle may end up is anyone’s guess for now, though it must be noted that in mid-November Bernardi bought an office building with extra acreage from Ryan in downtown Minneapolis that sits a stone’s throw from the Mississippi River.

The Dayton’s Project

Address: 700 Nicollet Mall, Minneapolis

Size: 1.2 million square feet

Cost: $250 million plus

Owner: 601w Cos.

Expected completion: 2019

Project team: Chicago-based Telos Group, Minneapolis-based developer United Properties, Chicago-based Mid-America Real Estate

Description: Momentum is building behind a top-to-bottom makeover of the old Macy’s building in downtown Minneapolis, a sprawling 12-story structure built in 1902 that housed a Dayton’s department store for decades.

In December, chef and TV star Andrew Zimmern announced that he had signed a lease for a 40,000-square-foot food hall and market concept at the site.

His venture was the first retail tenant to commit to the building, which will have 240,000-square feet of retail space in all. The team behind the revamp is still recruiting retailers and office users for the building.

As of December, the Dayton’s Project was still in the demolition and abatement phase. Construction will begin in earnest in the new year.

Thrivent HQ

Address: Downtown Minneapolis, on a block bounded by Sixth Street, Portland Avenue, Seventh Street and Fifth Avenue.

Size: Unknown

Cost: Unknown

Owner: Thrivent Financial

Expected completion: Unknown

Description: Thrivent Financial is selling its current headquarters at 625 Fourth Ave. S. to Hennepin County for $55 million, and will construct a new building at a surface parking lot it owns nearby.

So far the company has released few details about the building it is planning for the site, a block bounded by Portland Avenue, Sixth Street South, Seventh Street South and Fifth Avenue South.

In early December, Kirsten Spreck, Thrivent’s vice president of real estate development, told the Minneapolis Planning Commission that the new Thrivent building would likely be about 12 stories high and occupy about half of the site’s area. She added that Thrivent is in talks with three different parties interested in developing the balance of the block.

Thrivent representatives declined to provide further information.

Hennepin County should close on the old Thrivent building in the first quarter of 2018. If all goes according to plan, the county will take possession of the building in the first quarter of 2020.

Rice Creek Commons

Address: Arden Hills, east of the junction between Interstate 35W and Mounds View Boulevard.

Size: 427 acres

Development Team: Minneapolis-based Alatus LLC, Wayzata-based Inland Development Partners, Cushman & Wakefield, Lakeville-based builder Traditions, and Mid-America Real Estate Group.

Expected completion: 2028

Description: Pieces are falling into place for Rice Creek Commons, an effort to turn a former superfund site into a well-balanced city-within-a-city, complete with retail, office and flex space, housing, canals and trails.

Phase I, set to begin in 2018, includes building infrastructure and the first neighborhood. The site would be developed in four subsequent phases, roughly south to north, during the next eight to 10 years.

There is one enormous caveat, however. The site is in the running to become the second corporate campus for the internet retail giant Amazon, which set off frenzy among developers and states across the U.S. when it announced in September that it would send out a request for proposals.

If Amazon chooses the site, the development teams’ finely tuned plans will be scratched. Amazon is expected to make a decision by the first or second quarter of 2018.

Canterbury Commons

Address: 1100 Canterbury Road, Shakopee

Size: 380 acres

Cost: $400 million

Owner: Canterbury Development LLC

Expected completion: 10-year build-out

Description: On Dec. 19, the Shakopee City Council approved an amendment to the city’s comprehensive plan that would allow a sweeping, mixed-use development around the site of the horse track, Canterbury Park.

Development of the mammoth site would occur over five to 10 years and include another 300 apartments, as well as a hotel, “first-in-market” restaurants, specialty retail, an indoor-outdoor plaza with year-round entertainment, and an unspecified “premier gateway development.” Thus far, the plan is anchored by a $100 million, 300-unit luxury apartment project developed by Bloomington-based Doran Cos.

In early 2018, Canterbury Development will go before the City Council again for additional approvals, including a preliminary plat and tax increment financing.

Construction could begin as soon as this summer or fall.

By: Clare Kennedy
Date: Jan 2, 2018
View original article and images here.