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Industry Stats & Reports

25% Tariff, 100% Headache: The Impact of Steel Tariffs

posted on 03.19.2025

We know contractors were hoping for a little price stability in 2025, but the latest steel and aluminum tariffs might have other plans.

On March 4th, the U.S. imposed a 25% tariff on steel and aluminum imports from Canada and Mexico. And on March 12th, that 25% tariff now applies to all steel and aluminum imports — no exemptions. This includes all foreign metals used by American businesses, including manufacturers of cars, canned foods and drinks, solar panels and other products.

Canada is by far the largest supplier to the U.S. of both steel and aluminum. Brazil, Mexico, South Korea and Vietnam also ship the United States significant amounts of steel, while the United Arab Emirates and China send the U.S. aluminum.

The idea behind these tariffs? The White House says they’re meant to support American steel and aluminum producers. But for contractors and developers, they’re likely to mean higher project costs and tighter budgets.
 

Rising Prices and Supply Challenges
Steel prices have already been climbing since late 2024, and these tariffs are adding fuel to the fire. While the goal is to boost domestic steel production, the U.S. simply doesn’t make enough to meet demand. That means builders will still need to rely on imports from countries like Canada, Mexico, Brazil, and China — just at a higher price.

Unfortunately, that’s not the only concern. If trading partners respond with their own tariffs, costs could rise even further, adding more uncertainty to an already challenging market.
 

Projects Possible Already Feeling the Tarrif-fying Impacts
Large-Scale Developments: High-rise apartments, office buildings, and major government projects will likely see the greatest financial strain due to their reliance on structural steel.

Infrastructure Projects: Roads, bridges, and rail developments will also experience price increases.

Smaller Projects & Alternative Approaches: Some developers may explore alternative materials, such as shipping container conversions, which could be used for affordable housing and smaller commercial properties.
 

How to Navigate the New Tariffs
With the steel and aluminum tariffs now in effect, contractors and developers need to rethink their strategies to keep costs in check. Here are a few key ideas to consider:

Review Your Contracts
• Now’s the time to revisit contracts and, if needed, add cost escalation or force majeure clauses to account for material price fluctuations. Contractors will want these protections, but owners may push back — so be prepared for that conversation.
 

Look for Domestic Options
• U.S. steel mills are ramping up production, but supply might still be tight. Keeping a close eye on availability and planning for potential delays can help avoid surprises down the road.
 

Reevaluate Project Budgets
• With steel-heavy projects, like infrastructure builds, costs could climb fast. Developers should take a fresh look at budgets to ensure projects remain financially viable.
 

Be Strategic with Purchasing
• If possible, buying materials in bulk or locking in prices with suppliers early could help soften the impact of rising costs.
 

What’s Next?
While we’re probably not looking at the kind of supply chain chaos seen during the pandemic, these tariffs will still pack a financial punch for contractors, developers, and suppliers. Prices are shifting, and more trade policy changes are likely coming, so staying informed will be crucial.

By planning ahead and adapting to the new cost landscape, construction businesses can put themselves in a stronger position as 2025 continues to unfold.


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Information for this post was pulled from "Impact of Steel Tariffs on the Construction Industry" written by Saul Ewing LLP and posted on JPSupra.com on March 7, 2025. 

This information is also intended for general informational purposes only and should not be considered as legal advice. MBEX strongly recommends consulting with your business's attorney or legal advisor before taking any actions based on its content.

Government & Regulation

Building Buzz: Construction Shake-Ups, Big Plans & Industry Moves

posted on 02.24.2025

Welcome back to Building Buzz, your go-to source for the latest happenings in the construction and development world.

This week, we’re diving into a mix of hot topics that are shaping the industry—from legislative shake-ups and big-ticket development projects to the ever-evolving energy and infrastructure landscape. OSHA is making headlines (again), a homebuilder in Burnsville is facing local resistance, and St. Paul has a bold new vision for a $130-million downtown project. Meanwhile, the federal government has hit pause on EV charging network funding, and a Minnesota asphalt company is paying the price for shady business practices.

Whether you’re here for the policy debates, market trends, or just the latest buzz in Minnesota construction, we’ve got you covered. Let’s dig in!
 



FEBRUARY 10

Bill to abolish OSHA has 'zero chance' of becoming law, attorney said
Rep. Andy Biggs (R - Ariz.), last month proposed the Nullify Occupational Safety and Health Administration Act, which would abolish the Occupational Safety and Health Act of 1970 that created OSHA. Biggs introduced similar legislation in 2021, which stalled out after it was referred to the House Committee on Education and Labor. Phillip Russell, a Florida-based OSHA and employment lawyer for Ogletree Deakins said that the new bill will not pass, as OSHA plays a vital role in workplace safety. Even if Trump supported the bill, Russell said, Republicans would have to get rid of the filibuster in the Senate, which he does not see as likely. Nevertheless, the Trump administration has taken other actions in recent days that could impact the agency, such as pausing rulemaking and attempts to cut departments' and agencies' headcounts. (Construction Dive)
 

Builder plans housing at former Burnsville elementary school, faces pushback
A homebuilder seeks to construct 116-units of housing, including single-family homes and townhomes, at the site of a vacant elementary school in Burnsville, though the plan has already been met with community pushback. The local division of Columbus, Ohio-based M/I Homes proposes to redevelop the vacant Sioux Trail Elementary School site, which spans nearly 12-acres at 2801 River Hills Drive along Highway 13, according to city documents. The homebuilder is expected to present its plans to the Burnsville City Council for informal review. M/I Homes proposes the redevelopment include 23 single-family homes, 93 townhomes and a 1.17-acre park, which would have a 5,000-square-foot play structure and 2,500-square-foot sport court next to the existing Tennisioux Park. The units are anticipated to range from about 1,900-square-feet to over 2,000-square-feet, and include three bedrooms, according to M/I Homes' memo. (Minneapolis - St. Paul Business Journal)
 

DOT suspends Biden's $5B electric vehicle charging network effort
The Trump administration has suspended the $5-billion National Electric Vehicle Infrastructure formula program, informing state transportation directors in a February 6th memo that "no new obligations may occur" until guidance is updated. NEVI was included in the bipartisan infrastructure law passed by Congress in 2021 and represents one of the Biden administration's more robust efforts to expand electric vehicle adoption. The program required states to develop EV charging infrastructure plans in order to access funds, but the Federal Highway Administration, or FHWA, now says it has suspended approval of those plans. Most of the NEVI funds have already been awarded to state transportation departments. Nonetheless, the FHWA's announcement "creates great uncertainty for the billions of dollars states and private companies are investing," according to Ryan Gallentine, managing director at national business association Advanced Energy United. (Smart Cities Dive)
 

Eagan to consider food production facility at BCBS campus site
Inland Development Partners is proposing a 282,000-square-foot food production facility and office building, which could be underway as soon as next year, according to planning documents for the City Council meeting. The council will hear from and have an informal discussion with city staff and Inland about the proposed development. The production facility would serve as a warehouse and distribution facility for Buddy's Kitchen, a frozen food manufacturer that has facilities in Burnsville and Lakeville. Out of the 282,000-square-feet of space, about 35,000-square-feet are designated for office space while the remaining footprint will be used for "production area, freezers, coolers, test kitchens and support facilities," planning documents said. The anticipated timeline for the proposal would be to start permitting in 2025, start construction in 2026 and have operation and occupancy in 2027. (Finance & Commerce)
 

Energy providers advance major transmission line project
Great River Energy --- along with ITC Midwest and Xcel Energy --- said in a press release that the project will "meet the significant growth in electricity use projected in the coming decades and improve access to new energy sources needed to serve communities throughout the region." The energy providers said they have filed a "Notice of Intent to Construct, Own, and Maintain" the new transmission line with the Minnesota Public Utilities Commission. Next steps include public outreach and an environmental review process overseen by the commission. It's estimated that construction will begin in roughly 2030 and that the transmission line will be in service by 2035. The next few years, meanwhile, will "all be about public meetings, public involvement." (Finance & Commerce)
 

Mortenson to finish Milwaukee Public Museum's exterior in 2025
Construction is underway for a five-story, $240-million natural history museum on the northeast corner of North Sixth Street and West McKinley Avenue in Milwaukee. Milwaukee Public Museum officials said exterior construction is expected to be completed by the end of 2025, and interior construction will continue through 2025 and into 2026. The future museum will feature a five-story building on the corner of Sixth and McKinley Street, a three-story parking structure connected to Vilet Street and a plaza and garden on the northwest side of the city block. The construction and design team are led by Mortenson, ALLCON, Ennead Architects and Kahler Slater. Included in that list are more than 30 Wisconsin-based companies involved in construction of the future museum. So far, footings are in place and crews poured concrete for the first two stories. (Finance & Commerce)
 

Trump's latest tariff plans on steel and aluminum are spreading uncertainty
President Trump intends this week to reset U.S. taxes on all imports to match the same levels charged by other countries, all of which comes on top of the 10% tariffs he already put on China, China's retaliatory tariffs that started February 10th, and the U.S. tariffs planned for Canada and Mexico that have been suspended until March 1st. All of this carries inflation risks at a moment when voters are already weary of high prices and fearful that price increases will eclipse any income gains. Trump maintains that the tariffs will level the playing field in international trade and make U.S. factories more competitive, such that any pain felt by consumers and businesses would eventually be worthwhile. But companies that rely on steel and aluminum saw their share prices decrease, since tariffs mean that the cost of their raw materials could increase. For example, shares in automaker General Motors sold off, which could ultimately signal trouble for a manufacturing sector that Trump has promised to revive. (Finance & Commerce)
 



FEBRUARY 11

Apple Valley could host 5 data centers
Apple Valley could see an influx of construction on the Fischer Sand and Aggregate mining site if a prominent data center development gest the green light from the city, according to planning documents. Oppidan Investment Co. has pitched a technology park campus for the former mining site that would involve the building of 860,000-square-feet of property spread across primarily seven buildings, including five data centers. The Apple Valley Planning Commission held a public hearing for the proposed campus at its February 5th meeting, though it did not take any action on the item, in accordance with commission policy. The five data centers will create a footprint that takes up approximately 794,200-square-feet, while the remaining 66,000-square-feet will be utilized by two two-story buildings and "several small buildings such as lift stations and fiber rooms," planning documents said. Should Oppidan get all the green lights from the city, the hope is to start construction by this summer or fall. Construction of the site is on a five-year timeline. (Finance & Commerce)
 

Construction industry on firm footing despite labor challenges
The Royal Institution of Chartered Surveyors and American Association of Coast Engineering said construction was in a stronger position at the end of 2024, according to the USA Construction Monitor report. Researchers credited the infrastructure, home and office sectors for growth in contracting activity. The Construction Sentiment Index, made up of different key indicators, climbed to +40 in the last quarter, the report showed. Confidence was higher at the end of the year compared to +19 in the third quarter and +25 in the quarter before that. The report counted net balance data on a range from -100 to +100. (Finance & Commerce)
 

Sartell shows support for Niron manufacturing expansion
Niron, a provider of what it calls "rare-earth-free high-performance magnetics," wants to build a 150,000-square-foot manufacturing facility on a 79-acre site in Sartell. As part of the expansion, which is expected to create 175 jobs, the company is seeking state money to help pay for project-related infrastructure improvements. The Sartell City Council approved a resolution of support for Niron's application to the state's Business Development Infrastructure Grant Program, which offers grants to help pay for public infrastructure necessary for economic development projects. Specifically, Niron is seeking a $2-million grant to assist with the reconstruction of Fourth Avenue South from Niron Magenetics' property to Second Street South, according to a city staff report. Besides the reconstruction, the infrastructure project includes a roundabout at Second Street and Fourth Avenue. (Finance & Commerce)
 



FEBRUARY 12

$130M mixed-use project pitched for St. Paul's Central Station site
Flaherty & Collins wants to develop a key site in downtown St. Paul with a $130-million mixed-use project that would bring hundreds of market-rate apartments and other uses to the central business district. Flaherty & Collins unveiled its vision for a 20-story tower and a skyway-connected six-story-building on the Central Station site, which is framed by Fifth Street, Minnesota Street, Fourth Street, and Cedar Street, to the St. Paul Housing and Redevelopment Authority. The buildings would have a combined 369,600-square-feet of space, according to meeting materials. The unit mix would include studio, one-, two-, and three-bedroom apartments. Also included are 10,000-square-feet of ground floor retail, according to a project narrative. (Finance & Commerce)
 

Asphalt company ordered to pay $100k restitution
Community Blacktop LLC, a Minnesota-based asphalt company that victimized consumers, is required to pay $100,000 in restitution as part of settlement. The owner of the company also agreed to dissolve the business as part of a settlement announced by the office of Attorney General Keith Ellison. The company also goes by the name of C. Blacktop LLC, Community Construction LLC, Frontier Construction, and MVP Valued Paving & Engineering. The business "vicitimized consumers in Minnesota and across the country, targeting the elderly in particular, by promising quality asphalt work at a discount, but delivering subpar results and subsequently demanding outrageously inflated prices multiple times in excess of what was initially quoted," according to a press release from the Attorney General's office. (Finance & Commerce)
 

Headwaters pitches rentals near downtown Chanhassen
The Chanhassen City Council got a sneak preview of the proposed Headwaters Development project, which would "supplement" an existing 18-unit building on a site bordered by Santa Vera Drive and Saratoga Drive on the north and Laredo Drive on the east, according to a project narrative. The council didn't take formal action on the proposal, which was up for "sketch plan" review. A concept plan submitted to the city shows the new building just south and west of the existing apartments. Also shown are landscaping, a stormwater pond, space for additional ponding if needed, a "grill and amenity area," and parking for 67 vehicles. The developers plan to keep the existing apartments affordable and provide additional affordable units in the new building, according to city documents. (Finance & Commerce)
 

Monarch Development begins apartment project in downtown Waconia
The development team broke ground on the 92-unit market-rate apartment project last month, with an expected opening date of Spring 2026. The 1-acre site is located at the intersection of Olive Street South and Second Street West, less than two blocks from Main Street and three blocks from Lake Waconia. The five-story building will include a mix of alcove studios and one-, two-, and three-bedroom floor plans with large private terraces. (Minneapolis - St. Paul Business Journal)
 

Oppidan plans Apple Valley tech campus, five data centers
Oppidan Investment Co. is proposing to build more than 860,000-square-feet of space, including five data centers, at a former mining site in Apple Valley. Finance & Commerce reports that the developer's plan for Fischer Sand and Aggregate mining site went before the Apple Valley Planning Commission on February 5th, though the panel isn't expected to cat on the measure until at least February 19th. The city has a summary of the proposal, along with maps and public comments made so far, at the Apple Valley website. Oppidan is seeking a rezoning of a 134-acre parcel located at 15255 Johnny Cake Ridge Road that would allow mixed business uses. I'ts planning to use the site for five data centers --- three of them one-story structures and the others two-stories in height --- that total nearly 800,000-square-feet. Several ancillary buildings would add another 65,000-square-feet to the development. (Minneapolis - St. Paul Business Journal)
 



FEBRUARY 13

ABC, BAM sue state over independent contractor law
The Associated Builders and Contractors of Minnesota and North Dakota, the Builders Association of Minnesota, and Rochester-based J&M Consulting claim among other things that the law "adversely affects the construction industry" and is "unconstitutionally vague." The Department of Labor and industry is "reviewing the complaint and has no further comment," a DLI spokesperson said in an email. Ellison's press secretary said in an email that the "Minnesota Attorney General's Office will respond in court." Signed by Gov. Tim Walz last spring, the law is scheduled to go into effect on March 1st, according to court documents. The new law creates more enforcement tools and provides stiffer penalties against employers who misclassify workers as independent contractors. Specifically, it includes "compensatory damages" and penalties of up to $10,000 for "each individual" the employer "failed to classify, represent or treat" as an employee, among other provisions. (Finance & Commerce)
 

Central Station site: 'pivotal' and challenging
The St. Paul City Council is enthusiastic about Flaherty & Collins' plan for a $130-million mixed-use development on the Central Station site in downtown St. Paul, but at least one city official cautions that the hard work to make the project happen is just beginning. The project, unveiled at St. Paul's HRA meeting on February 12th, calls for 300 apartment units and 10,000-square-feet of retail space in two buildings: a 20-stpry tower and a skyway-connected six-story building. The development site is framed by Fifth Street, Minnesota Street, Fourth Street and Cedar Street. Among other challenges, the site is owned by two separate public entities --- the city of St. Pal and the Metropolitan Council. Further complicating the project is the unusual shape of the site and the presence of a light rail line, which runs through the property. (Finance & Commerce)
 

Downtown St. Paul Green Line site draws plans for housing from Flaherty & Collins
St. Paul leaders may give the go-ahead on the Indianapolis developer's plan to build hundreds of market-rate homes at a vacant site in downtown, a project that would give the city a needed jolt of private-sector investment. The Pioneer Press reports on the outlook for the plans by Flaherty & Collins, which envisions 300-units of housing at the Central Station block, including a 20-story tower and a smaller, six-story building. The site, which is largely empty aside from a Green Line light rail station, is bordered by Fourth and Fifth streets and Cedar and Minnesota streets. An official with the developer told the paper that the investment could be as much as $130-million, though the plans are still conceptual. (Minneapolis - St. Paul Business Journal)
 

Hempel aims for TIF for West End apartment project
Though it received approval from St. Louis Park for its planned unit development, Hempel Real Estate, the developer, will go back to the City Council to ask for final approval for the tax increment financing district and a conditional use permit. The Terasa, as the project has been dubbed, is addressed at 5401 Gamble Drive in St. Louis Park's The Shops at West End. The project will spread 223-units across six stories, according to planning documents. The first floor will have 21,000-square-feet of commercial and retail space. Out of the 223-units, 45 have been designated as affordable units, available for people making 50% of the area median income. There will be 74 studio units for the Terasa along with 71 one-bedroom and two-bedroom units. The remaining seven units will have three bedrooms, according to planning documents. There will be 133 surface stalls and 231 stalls in a below-ground parking garage. (Finance & Commerce)
 

Hempel plans office, residential near St. Louis Park's shops at West End
Hempel Real Estate is planning three new mixed-use buildings at and around The Shops at West End in St. Louis Park, led by a high-profile real estate executive who joined the developer. Officials said the new project includes an office building with as much as 120,000-square-feet behind the Punch Bowl Social location, as well as another two mixed-use residential buildings across Gamble Drive from The Shops. The buildings, still in the proposal stage, would be among Hempel's latest efforts to expand its holdings around West End after the company purchased The Shops in 2022. (Minneapolis - St. Paul Business Journal)
 

Lake West tries again to redevelop TCF headquarters in Wayzata
Lake West Development has submitted new plans to the city after five previous attempts failed since 2020 to redevelop the site overlooking Wayzata Bay on Lake Minnetonka. The latest denial led the developer to sue the city in 2023, alleging it erred in its denial of a rezoning of the property, located at 200 Lake Street East. Its latest proposal considers two concepts for a nearly 99,000-square-foot building that would replace what's there now:

1.) A 4-story building with 30 condominium units, ground-floor commercial space and 205 parking stalls, or
2.) 1 3-story building with 50 condominium units, ground-floor commercial space and 162 parking stalls.

The residential units will have a homeowner's association. The building would look like separate buildings, city documents showed. (Minneapolis - St. Paul Business Journal)
 



FEBRUARY 14

Amazon buys 95-acres of Thomas Reuters campus in Eagan
Amazon.com Inc. has acquired over 95-acres of the former Thomson Reuters campus in Eagan, supporting other indicators that the ecommerce giant is involved in a redevelopment of the site. Ryan Cos. US Inc. is in the process of transforming 179-acres of Thomas Reuters' 263-acre campus into a mix of industrial and residential uses. Ryan first unveiled its intent to redevelop the site last year, with plans showing a 3.6-million-square-foot industrial building for an unidentified user. The building plans, like the color swatches and an entry-door design, suggested that Amazon could occupy the multi-story building called Project Nova. Now Amazon has purchased a large swath of the site, located off Dodd Road, from a subsidiary tied to Ryan. (Minneapolis - St. Paul Business Journal)
 

Amazon buys Thomson Reuters lot for $52M
Amazon has purchase a piece of land on what was formerly the Thomson Reuters campus in Eagan for $52.5-million in cash, according to a certificate of real estate value released. The CRV says the property will be used for a distribution warehouse, which aligns with the master plan for development for the Thomson Reuters campus, a plan that was passed by the Eagan City Council in November. The development master plan that was considered in November labeled this parcel of land as "Project Nova." (Finance & Commerce)
 

Hempcrete and solar thermal come together on Lower Sioux projects
As program coordinator for 8th Fire Solar, an emerging Osage, Minnesota-based provider and installer of solar thermal panels, Gwe Gasco is doing his part to take care of the environment and lay the groundwork for a more energy independent future. The "two worlds" he references are solar thermal and hempcrete. They are coming together on projects 8th Fire Solar has been working on for the Lower Sioux Community in Southwest Minnesota. In January, Gasco led a team from the White Earth Nation, which brought a solar thermal panel to install on a recently built hempcrete house. In the following interview, Gasco talks about his company, the marriage of solar thermal and hempcrete on a recent Lower Sioux project, his outlook for energy-friendly projects in 2025, and more. (Finance & Commerce)
 

Stillwater building contractor pleads guilty in tax fraud case
The Ramsey County Attorney's Office (RCAO) has announced that a Stillwater building contractor has pleaded guilty in a tax fraud case. Todd Konigson, a masonry contractor who owns the business Stillwater Masonry Restoration, kept employee withholding and failed to report income. Ramsey County Attorney John Choi's office came one of the first county attorney's offices in Minnesota to hire a full-time wage theft investigator who prioritized crimes like these. It launched an investigation after receiving reports that Stillwater Masonry was failing to timely pay wages to its employees, as well as not fulfilling contractual obligations to small businesses, churches, and nonprofit organizations in the Twin Cities area. The investigation arose out of work the business performed on St. Paul's historic Masonic Temple. Subsequently, the office filed a criminal complaint against Konigson. (Finance & Commerce)
 

Industry Stats & Reports

Building Buzz: Welcome to February!

posted on 02.12.2025


**Update 2-21-2025


Welcome to Building Buzz, where we're reading the headlines so you don't have to.

Already halfway through February, the construction industry is tackling big challenges and seizing new opportunities.

Minnesota continues to wrestle with greenhouse gas emissions from buildings, even as the state makes strides in overall reductions. Meanwhile, Milwaukee County is preparing for a $490-million overhaul of its nearly century-old Public Safety Building, aiming to modernize and streamline its justice system. Nonresidential construction spending saw a slight dip to close out 2024, but data centers and manufacturing remain bright spots for growth this year. On the housing front, office-to-apartment conversions are set to hit an all-time high in 2025, offering a creative solution to outdated office space. Locally, projects like Yellow Tree’s 242-unit development in Inver Grove Heights and Big-D’s new affordable housing in Rosemount are adding much-needed residential options.

With infrastructure, sustainability, and innovation in the spotlight, it's shaping up to be another dynamic month in construction. Let's dive in further to this Building Buzz:
 



FEBRUARY 3

Buildings continue to pose greenhouse gas challenge
Minnesota continues to struggle to reduce greenhouse gas emissions from buildings. The state released data from 2005 and to 2022 that showed continued emissions in three categories related to businesses and housing. Combined, they represent 33% of all emissions in the state, collectively more than agriculture, electricity generation, and the leading polluter, transportation. Still, the state continues to see progress. Overall, emissions have dropped 14% since 2005, according to Katrina Kessler, commissioner of the Minnesota Pollution Control Agency. One challenge has been the return to normality after the pandemic when emissions plummeted in 2020 and 2021 before jumping 6.4% in 2022. (Finance & Commerce)
 

Milwaukee County plans $490M Public Safety Building overhaul
Shortly after hiring a consulting firm to redesign the Public Safety Building, Milwaukee County officials toured the crumbling facility ahead of a $490-million reconstruction project. The building, located at 821 West State Street in Milwaukee, is nearly 100 years old and doesn't reach state standards for courthouses, creating slowdowns in the local justice system and safety risks for those who use the facility, according to many local officials and judges. In January, the county announced it selected engineering firm AECOM to provide architectural planning and design services on a multi-year project. The county also brought a team from the National Center for State Courts' Court Consulting Services Division to seek stakeholder input. AECOM will work on design through 2027, and construction could begin in 2028 or 2029 and continue through 2031 or 2032, officials noted. (The Daily Reporter)
 

Nonresidential construction spending down 0.2% in December; Data Centers and Manufacturing make up 94% of spending increase in 2024
Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending increased 0.1%, while public no0nresidential construction spending was down 0.5% in December. While its expected public sector activity should at least partially rebound in the coming months, high interest rates and an emerging trade war with Canada and Mexico will continue to weight on many privately financed segments. (Associated Builders and Contractors)
 

Pipeline of office-to-apartment conversions expected to hit all-time high in 2025
It's true that converting office space to multi-family buildings is no easy task. But such conversions offer an opportunity for cities to remove outdated or obsolete office space and replace it with highly desirable rental housing. This truth explains the prediction from RentCafe that the number of office-to-apartment conversions will soar across the United States in 2025. In its Market Insights report, published January 30th, RentCafe said estimates that the number of apartments set to be converted from office spaces in the United States will jump to a record-breaking 70,7000 in 2025. (RE Journals)
 

Yellow Tree pays $3.6M for Inver Grove Heights development site
Yellow Tree Development has closed on the site of its planned 242-unit, $66.4-million apartment building in Inver Grove Heights and hopes to begin pushing dirt by midyear. Silver Tree LLC, an entity related to Yellow Tree, paid $3.6-million for the 4.4-acre development site at the southwest corner of 70th Street and Agate Trail, according to a certificate of real estate value made public. Construction would begin as soon as May, but it's more likely to happen in June or July. In April, the Inver Grove Heights City Council granted land-use approvals for the project, which will offer 242 market-rate apartments ranging from studios to three-bedroom units, and amenities such as a sky lounge with a roof deck, a fitness center, a yoga studio, work-from-home stations, and a pool. (Finance & Commerce)
 



FEBRUARY 4

Big-D completes affordable rentals in Rosemount
The 160-unit Landing at Amber Fields Apartments, part of the larger Amber Fields development, offers a mix of one-, two-, and three-bedroom options. Each unit feature "in-home washers and dryers, stainless steel appliances and granite countertops." Community amenities include a club room, fitness room, underground parking, outdoor patio, playground, and dog park. The units are affordable for households at 50%, 60%, and 70% of the area median income (AMI). (Finance & Commerce)
 

Milwaukee plans $490M Public Safety Building overhaul
Shortly after hiring a consulting firm to redesign the Public Safety Building, Milwaukee County officials toured the crumbling facility ahead of a $490-million reconstruction project. The Public Safety Building, at 821 West State Street in Milwaukee, holds a handful of criminal courts and holding and jury facilities for the county court system. The building in nearly 100 years old and doesn't reach state standards for courthouses, creating slowdowns in the local justice system and safety risks for those who use the facility, according to many local officials and judges. The early plan assumption is to move facilities out of the safety building, then deconstruct and reconstruct the facility. Overall, the county wants to put all the criminal courts under one roof. The design process will take two years and early plans aren't final. (Finance & Commerce)
 

Sports complex could spur development in SE Rochester
The city of Rochester has signed off on a $5-million property acquisition for a future $65-million sports and recreation complex, a project that will bring new outdoor athletic facilities to the southeast part of the city. A second project phase with indoor facilities could ultimately double the project cost. The 160-acre property deal, approved by the City Council on February 3rd, offers more than enough land for both indoor and outdoor attractions --- as well as potential private sector development, which could generate revenue to support the second round of construction. City officials looked at more than 15 potential sites for the complex and boiled that list down to three before settling on a property owned by Seneca Foods Corp. Located north of 45th Street near St. Bridget Road Southeast, the Seneca site has ample room for expansion and future development, such as hotels, restaurants and housing, according to a city staff report. (Finance & Commerce)
 



FEBRUARY 5

$23.5M in funding helps advance 3 Trellis projects
Nonprofit developer, Trellis Co. will start interviewing contractors to build its 40-unit supportive housing project in Mankato, according to a Trellis leader. The project, which has yet to receive an official name but is located at 750 Linder Avenue, will begin construction near the end of 2025 and has an anticipated completion timeline of 12 - 14 months. The project completed its gap financing after the Minnesota Housing Finance Agency awarded the project $7.25-million in December. The Mankato project was not the only project for which Trellis was awarded funding. For two preservation projects in Eveleth and St. Louis Park, the firm received $7.65-million and $8.56-million. Trellis is the only group to receive multiple funding awards for multi-family projects in this round of state funding, having been given a total of $23.5-million. (Finance & Commerce)
 

Rochester OKs annexation, rezoning for 220 new homes
Bigelow Homes, which is headquartered in Rochester, hopes to begin site work as soon as the summer on the multi-year development. The Rochester City Council approved annexation and rezoning requests to push the plans forward. Besides the annexation, the council approved a zoning change from "R-1," which is for "larger lot" single-family development, to "R-2," which allows duplexes, fourplexes, townhomes and smaller lot single-family houses. From a construction standpoint, the goal is to begin moving dirt in July or August and commence street and underground work in Spring 2026. Finished lot should appear in August 2026, followed by two construction phases of 110 lots each. (Finance & Commerce)
 



FEBRUARY 6

$8.5M settlement reached in construction worker's death
Personal injury law firm SiebenCarey has announced that it has reached an $8.5-million settlement in the death of a construction worker who was crushed by a dump truck in downtown St. Paul in 2022. Part of the large settlement reflects the pain and emotional turmoil suffered before the worker's death, a remedy available thanks to changes in the state's wrongful death laws in the Omnibus Judiciary and Public Safety Bill enacted in 2023. Peter Michael Davis was a 61-year-old construction worker for subcontractor SGP Contracting Inc. He also had been a longtime employee of the St. Paul Regional Water Services Department. David was working construction on Wabasha Street just south of Seventh Street East in downtown St. Paul on September 28, 2022, when a loaded dump truck operated by Dawson Barber and owned by Ti-Zack Concrete backed up to the construction site. It backed up for approximately six seconds before it hit Davis, traveling just under 70-feet before stopping. (Finance & Commerce)
 

Hearth ready to build apartments on site made famous by 'Fargo'
Way back in 2022, Hearth Development cleared the city entitlement process for a planned $14-million, market-rate apartment building on a site that may be familiar to fans of the movie "Fargo" --- the old Lakeside Club location in Mahtomedi. Memorable scenes from the 1996 movie were filed at 10 Old Wildwood Road, the location of the Lakeside Club. The club has since been demolished, but the 39-unit apartment project is finally on the cusp of construction. Hearth plans to break ground next week on the building, which will be targeted to people 55 and older. Designed by Kass Wilson and built by Nottingham Construction, the building will feature an outdoor community space with a party deck, a golf simulator, pet wash, community room on the main floor, office spaces for residents and other amenities. (Finance & Commerce)
 

Tariff threats loom over construction spending
Construction spending in late 2024 inched upward thanks to single-family homes and data centers, but recently announced tariffs over the weekend could impact future construction spending. That's according to a report from the Associated General Contractors of America. Total construction spending in December was $2.9-trillion at a seasonally adjusted annual rate, AGC added. Public construction spending fell 0.5% for the month and rose 4.3% over 12 months, officials said. The three largest segments were highway and street, education, and transportation construction, which had short term falls but long-term gains. Private office construction other than data centers grew 1.2% in December and 12.8% year-over-year, officials noted. (Finance & Commerce)
 



FEBRUARY 7

Affordable 'passive house' townhomes pitched near Midtown Greenway
A local development team wants to build 10 passive house-designed, affordable townhome units on a former encampment site along the Midtown Greenway in Minneapolis' Midtown Phillips neighborhood. The 14th Avenue Townhomes, proposed by Trio Development Group and the City of Lakes Community Land Trust, would rise on three city-owned vacant lots at 2833-39 14th Avenue South, according to a staff report for the February 10th Minneapolis Planning Commission meeting. The construction cost would be about $4-million, according to Paul Gates Architect, who is working on the project. The commission will consider two variances and review a site plan for the proposed L-shaped building, which would offer three four-bedroom units, four two-bedroom, units, and three one-bedroom units. (Finance & Commerce)
 

Cedar Rapids breaks ground on $275M casino and entertainment center
Construction is underway for the Cedar Crossing Casino and Entertainment Center after more than a decade of efforts from developers. It's estimated to bring in an additional $60-million a year to Iowa and more than $6-million will go to local nonprofits annually. Developers said they plan to open the doors to Cedar Crossing on December 31, 2026. (Iowa News Now)
 

Inland to developer Buddy's Kitchen facility at former BCBS Eagan HQ
Inland Development Partners plans to buy the former Blue Cross and Blue Shield of Minnesota headquarters building in Eagan to construct a new facility for frozen food manufacturer Buddy's Kitchen Inc. The developer would build a 282,000-square-foot specialty food production facility at 3535 Blue Cross Road, the site of BCBS's former headquarters building, which would be demolished for the project, according to city documents. Inland also would purchase an adjacent property that contains a 12,000-square-foot daycare center, located at 3545 Blue Cross Road, where the developer may build residences as part of a future phase. (Minneapolis - St. Paul Business Journal)
 

Government & Regulation

New & Recent Laws That Every Minnesota Employer Should Know in 2025

posted on 01.20.2025


A fresh year always brings fresh updates, and for Minnesota employers, 2025 has a lot to unpack.

From pay transparency to updated sick leave rules, here’s a straightforward. no-fuss rundown of what’s new and how it could impact your business.
 

PAY & BENEFITS TRANSPARENCY (2025)
Starting January 1, 2025, a new statewide pay-transparency law for employers with 30 or more employees is in place. Under Minnesota Statutes 181.173, job postings must now include:

• The starting salary range (no more "open ranges").
• A general description of benefits and other compensation (think health insurance, retirement plans, etc.).
• This applies to postings across the board --- whether online, in print, or through third-party recruiters.

Bother the Minnesota Department of Labor and Industry and the Attorney General's office will enforce compliance.

The goal? To level the playing field by addressing disparities in compensation. Minnesota's not alone here; states like California, New York, and Colorado have similar laws. If you're hiring across multiple states, now's a good time to ensure you're meeting all the rules. 

 

AMENDED SICK AND SAFE TIME REQUIREMENTS (2025)
Minnesota’s Earned Sick and Safe Time (ESST) law has been around since 2024, but amendments in 2025 bring some important tweaks:

• Using PTO for ESST Purposes: Employers can now use PTO for ESST-eligible reasons, even after exhausting their ESST balance.
• Expanded reasons: Funeral leave is now included under ESST-qualifying purposes.
• Recordkeeping: Employers must retain ESST-related records for at least three years.

With these changes, it's a good idea to revisit their PTO and ESST policies to ensure that everything is up to date.

 

MINIMUM WAGE RATE HIKE (2025)
At the start of the year, Minnesota's minimum wage has gone up to $11.13 an hour.

While this applies statewide, don't forget to check for higher rates in Minneapolis and St. Paul if you're operating in them. A training wage is still available for workers under 20 years of age, but double-check those city ordinances to avoid hiccups.

 

MINNESOTA HUMAN RIGHTS ACT CHANGES (2024)
Changes to the Minnesota Human Rights Act (MHRA) in August 2024 carry big implications for employers:

• Unlimited Punitive Damages: The previous $25,000 cap is gone, so penalties for violations could be steep.
• Jury Determinations: Juries, not judges, now decide the extent of damages in discrimination cases.
• Expanded "Disability" Definition: This now includes conditions that are episodic or in remission but would limit major life activities when active.
• More Time to File Claims: Employees now have 90 days to file a lawsuit after receiving a dismissal notice from the Minnesota Department of Human Rights (MDHR).

Make sure your policies align with these updates to avoid costly mistakes.

 

MISCLASSIFICATION OF EMPLOYEES AS INDEPENDENT CONTRACTORS & NEW RULES FOR CONSTRUCTION COMPANIES (2025 and 2024)
Independent Contractor Misclassification: Starting July 1, 2024, misclassifying employees as independent contractors can cost you up to $10,000 per violation. Additional penalties apply for obstructing investigations.

Construction Industry-Specific Rules: As of March 1, 2025, construction companies face new criteria for classifying workers. A 14-factor test now determines whether a worker is an independent contractor. Penalties are steep, with up to $10,000 per misclassification and potential individual liability for repeated violations.

 

ELECTRONIC TIPS TO WORKERS (2024)
As of August 2024, all electronic tips—whether from a card or an app—must be given in full by the next pay period to the employee. If your business relies on tipped workers, this one's a no-brainer to implement. 

 

Change can feel overwhelming, but staying ahead of compliance is crucial. Now’s the time to review your policies, update handbooks, and ensure your team is trained on these new requirements.

Got questions? Reach out to legal counsel or a trusted HR professional for guidance.
 

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This information was pulled from "The Work Week with Bassford Remele" newsletter, published on January 6, 2025 (read it here). The attorneys at Bassford Remele's Employment Law practice group have extensive experience advising employers on these and other new and changing laws, regulations, and ordinances, from federal to local. Please reach out to any of their team members for guidance, questions, or further assistance.

Industry Stats & Reports

Building Buzz: January 2 - 10

posted on 01.17.2025


Welcome to the first Building Buzz of 2025, where we're reading the headlines so you don't have to.

As we settle into the new year, the construction industry is already hard at work shaping communities and addressing challenges. In Wauwatosa, developers are turning a parking lot into a nearly 200-unit apartment complex, while the Milwaukee Bucks’ downtown plans show how mixed-use projects continue to redefine urban spaces. Locally, Trellis Co.’s purchase of the Flour Exchange in Minneapolis could breathe new life into the historic building, hinting at potential residential or mixed-use conversions. Across the Midwest, Iowa’s solar capacity is getting a boost, and Minnesota’s water infrastructure projects in Rochester and Lino Lakes are tackling critical updates for the future.

With steady job growth in construction and evolving regulations on the horizon, 2025 looks to be a year of practical progress and adaptation.

Let's dive in further to see what's already underway these first few weeks of January.
 



JANUARY 2

Developer pitches nearly 200 apartments in Wauwatosa
Mandel Group is requesting a conditional use permit to build a four-story, 196-unit apartment building at 720 North Mayfair Road. The Wauwatosa Plan Commission recommended approval of the project, located in the Research Park District and Mayfair Overlay zone on December 9th. The project site is currently a parking lot for the Milwaukee County Research Park, which has been redeveloped by Irgens for nearly several decades. The apartments will be made up of studio, one-, two-, and three-bedroom units and above an underground parking structure with 227 spaces, project plans showed. There will be a total of 275 parking spaces with 48 surface parking spaces, plans showed. The way the building is designed allows for three building facades to face Wisconsin Avenue, reducing the complex's scale along the avenue, plans showed. (Finance & Commerce)
 

Milwaukee Bucks eye land for future mixed-use apartment
The city will hold a public hearing on January 16th to consider a land transfer between the team and the Redevelopment Authority of the City of Milwaukee for 300-318 West Juneau Avenue, an official notice showed. The transfer will "allow Milwaukee Bucks LLC to develop property consistent with their downtown arena project," the notice said. The building would be 27,000-square-feet of first-floor mixed-use space, Deer District officials said in a previous statement. Development partners expect construction to start in mid-2025. (Finance & Commerce)
 



JANUARY 3

Affordable housing developer Trellis buys Flour Exchange in downtown Minneapolis
An entity tied to Minneapolis-based nonprofit Trellis Co. acquired the 93,352-square-foot, Class B office building last month for $3.48-million, according to an electronic certificate of real estate value filed with the Minnesota Department of Revenue. The public real estate filing denoting the sale suggests the building may be transformed into another use, showing a planned use as "other, special or unspecified." The 12-sotry building was marketed as a potential conversion to residential, hospitality or a mix of uses. The building has an occupancy of 34%, as of June of last year. (Minneapolis - St. Paul Business Journal)
 

AGC's Worke on construction opportunities, challenges
As the CEO of the Associated General Contractors of Minnesota, Tim Worke is one of the leading voices of Minnesota's construction industry. In the following interview, Woke discusses opportunities and challenges in the construction industry, among other topics. He also previews the 2025 Minnesota Construction Summit, scheduled for February 19-20 at the Saint Paul RiverCentre. Presented by AGC-Minnesota, the annual summit offers exhibits, networking opportunities and seminars on industry topics ranging from safety to market forecasts. (Finance & Commerce)
 

Construction industry preps for regulatory changes
Environmental regulation receded to the background of the 2024 election, overshadowed by top voter concerns such as the economy and inflation, immigration and social issues. But industry insiders expect a looser regulatory environment in the second Trump administration, which will being both positives and potential negatives, consultants said. Construction executives and superintendents are watching for action on the Occupational Safety and Health Administration's proposed heat rule. In July, OSHA proposed a rule to protect 36-million workers at risk of heat injury, illness or death in the workplace. It has not gone into law. More broadly, the construction industry is optimistic about accelerating pre-construction environmental reviews, including remediation projects. (Finance & Commerce)
 

Injunction against Lino Lakes building pause denied
The U.S. District Court for the District of Minnesota has denied a motion seeking a preliminary injunction against a Lino Lakes construction moratorium that developers say discriminates against Muslims seeking to build a mosque and hundreds of housing units in the city. The court determined that the plaintiffs would not be irreparably harmed without the injunction as a lawsuit against the city proceeds. In 2021, a property developer sought to develop parcels called the "Robinson Property." However, it never got beyond the concept stage. Jameel Ahmed and Faraaz Mohammed, Muslims who worship at a misjid in Blaine, which is adjacent to Lino Lakes, noted that the masjid had more worshippers than capacity. They also subscribe to Islamic traditions that Muslims receive spiritual blessings if they walk to their place of worship. Hoping to develop a community where Muslims could walk to their mosque, Ahmed and Mohammed formed Zikar Holdings. In 2023, they identified the Robinson Property as the place to make it happen. The anticipated residential development would be called "Madinah Lakes." (Finance & Commerce)
 



JANUARY 6

Burns & McDonnell completes construction of 200 MW of solar in Iowa
Engineering consultant Burns & McDonnell announced it has completed construction of two utility-scale solar projects in Iowa. The projects will deliver electricity to Iowa's utility Aliiant Energy. The two completed projects include the 150 MW Wever solar project and the 50 MW Creston solar project. Combined, the two projects are expected to collectively provide enough power for about 40,000 homes annually. The projects give a significant boost to Iowa's solar output, which currently stands at just 700 MW, according to the Solar Energy Industries Association. (PV Magazine)
 

Projects in Milwaukee and beyond booming in 2025
Redevelopment of a former mall, the replacement of a freeway, more hotel rooms and housing are all on the table for construction in the Milwaukee area in 2025. Construction is booming across the rest of Wisconsin with megaprojects slated for the southeastern region. Here are some projects approaching completion, underway, or planned for 2025. (Finance & Commerce)
 

Rochester, Lino Lakes win big in water infrastructure funding
An aging water treatment plant in Rochester and a new drinking water facility in Lino Lakes are among the big winners in the latest round of project funding from the Minnesota Public Facilities Authority. The MPFA recently announced $265-million in low-interest loans and grants for 27 wastewater and drinking water improvements throughout the state, including the Rochester and Lino Lakes projects, both of which are already under construction. Scheduled for completion in December 2026, the Rochester project will replace aging equipment, improve efficiency, reduce operational and maintenance costs and reduce phosphorus from drinking water with less reliance on chemicals, according to the city. (Finance & Commerce)
 

Rondo Community Land Trust pitches condos, retail along Selby Avenue in St. Paul
The nonprofit Rondo Community Land Trust is planning a mixed-use building with 20 affordable condominium units along Selby Avenue in St. Paul. The St. Paul-based land trust is also seeking to add about 3,000-square-feet of commercial space on the ground floor of the five-story building. The city's Planning Commission will consider whether to rezone the site for project this week (January 6-10). The current building at the site, which formerly housed a dry-cleaning business and two residential units, is vacant, according to city documents. Rondo CLT first presented its plans December 19th to the city's Zoning Committee, which recommended approval of the rezoning. (Minneapolis - St. Paul Business Journal)
 

Why construction companies face cybersecurity risks --- and how to combat them
Most construction companies know to secure their tools on a job site from theft and vandalism. But are you protecting your most important tool: your IT systems? To protect against these threats, the construction industry and its companies should adopt robust cybersecurity practices. Even small companies --- construction enterprises of all sizes can be targets for attack. This starts with developing a cybersecurity program that is aligned with the company's size and needs. (Washington Business Journal)
 



JANUARY 7

Construction Employment picks up at the end of the year
Construction employment data saw some improvement at the end of 2024. In November, nonfarm payroll employment rose in 38 states and Washington DC, while it declined in 12 states, according to the National Association of Home Builders' Eye On Housing blog. Nationwide, 227,000 jobs were added, which was an improvement from October when only 32,000 jobs were added. In the construction sector alone, job increases were seen in 23 states and DC, while 23 states experienced losses, and four states saw no change. Minnesota recorded the highest percentage increase at 2.1%, and Indiana had the largest percentage decline at 2%. (Pro Builder  |  National Association of Home Builders)
 

St. Paul zoning board rejects Ryan's smaller-scale plan at Highland Bridge
The Pioneer Press reports that the board voted 4-2 to reject Ryan Cos. US Inc.'s request for zoning variances for parcels along Ford Parkway, where the Minneapolis developer had hoped to build a series of one-story commercial buildings. The Business Journal reported on Ryan's new plan for the area, which is significantly shorter than the multi-story buildings called for in the original Highland Park master plan. Where the city once envisioned buildings as tall as 65-feet, with apartments sitting above commercial space, Ryan sought commercial buildings as short as 12-feet. (The developer did include a four-story apartment building in its plan.) Ryan's proposal had won backing from city planning staff, but the idea has drawn pushback from area residents, and board members had concerns, as well. (Minneapolis - St. Paul Business Journal)
 

Designs approved for $90M Wauwatosa apartment
Developers Cobalt Partners and John Vassallo presented plans for Tosa Lofts, a five-story, 385-unit apartment complex at 11811 West Bluemount Road. The plans went to the Wauwatosa Design Review Board on December 5, 2024, but the committee held the project. After returning to the board with minor changes to the exterior, the developers on January 2nd secured approval from the committee. Developers plan to demolish a school building on the site in the first quarter of 2025. Construction is expected to starting the second quarter of 2025 and will take 20 months. Milwaukee-based Korb Archit4ecture provided design services for Tosa Lofts. (Finance & Commerce)
 



JANUARY 8

Materials costs, workforce gaps will shape 2025 activity
Construction leaders are grappling with labor shortages, supply chain pressures, and shifting policies entering 2025. Labor remains a significant cost factor in the construction industry, particularly in regions with high-tech and mission critical projects, like data centers. While commodity prices have largely stabilized in 2024, fluctuating metal costs and ongoing procurement challenges continue to test the construction industry's resilience. Still, proactive planning and strategic investments can help contractors prepare for the year ahead. (Construction Dive)
 

Mixed-use project would be 'catalyst' for downtown Winona
Winona has identified a need for more housing --- and a local project team hopes to do its part with a proposed $30-million-plus development that will create new homes and other uses on a downtown site next to a future concert hall. The project team, Schwab Construction Services of Winona and Main Square Development LLC, wants to bring 121 market-rate apartments and up to 30,000-square-feet of commercial space, including a restaurant, to the 1.6-acre site at the southeast corner of Washington Street and West Fourth Street. (Finance & Commerce)
 

Opus plans office development, new headquarters at Edina site off Highway 100
The Opus Group plans to replace an aging Edina office site with a 112,000-square-foot office building, a portion of which would serve as the developer's new headquarters. The Minnetonka company submitted a sketch plan for the site, located at 5100 Eden Avenue, just off of Highway 100, where it plans to demolish a 38,000-square-foot, four-story office building known as the "building on stilts." (Minneapolis - St. Paul Business Journal)
 



JANUARY 9

Contractors lobby Trump allies to dodge potential tariffs
A national organization of contractors said that it's working to head off tariffs threatened by the incoming Trump administration that the construction industry fears will add to costs and undermine a humming economy. The Association of General Contractors of America is also lobbying Trump associates to rescind President Biden's rule requiring project labor agreements on major federal projects, and to limit contractors' liability for chemicals known as PFAs. (Finance & Commerce)
 

Data center boom powers rebound in construction planning
The Dodge Momentum Index climbed 10.2% to close 2024. Commercial planning led the charge with a 14.2% increase, while institutional planning posted a more modest 2.5% gain, according to the report. On a year over year basis, the DMI jumped 19% compared to December 2023. Commercial planning surged 30% during that period, while institutional planning remained largely flat. Data enter continue to pay a pivotal role in that growth, according to Dodge, but the increase also had a broader base. (Construction Dive)
 

Program could reduce barriers for small contractors
The Associated General Contractors of Minnesota developed the "prompt payment" program, which is part of the association's 2025 legislative agenda. In a nutshell, the program would enable approved small businesses to receive "direct, partial payments from owners in a timely manner," according to the association. The program addresses a longstanding concern for small businesses and low-tier contractors --- the ability to cash flow their way through projects that may take years to complete. As payments trickle down from the owner to the prime contractor to the subcontractors, lower-tier subs, including small businesses, are last in line to get paid. In the meantime, AGC notes, the small businesses are required to pay upfront for supplies and labor costs. (Finance & Commerce)
 



JANUARY 10

Kalahari Resorts plans $85M waterpark expansion in Wisconsin Dells
Kalahari Resorts & Conventions, the African-inspired water park located in the Wisconsin Dells, announced that it has started construction on an $85-million, 75,000-sqiare-foot expansion of its indoor waterpark. One of the major additions of the project is a retractable roof that would create an open-air waterpark option in the warmer months. The glass-enclosed building will also add three new waterslides to the resort, including two six-person raft slides and a four-lane racing slide. Kalahari Resorts also said the facility will house attractions such as a spa pool, a zero-depth entry pool that has tanning ledges, a new kiddie pool with a slide and another area with an adult swim-up bar. The business expects the expansion to open by Fall 2026. (Minneapolis - St. Paul Business Journal)
 

Macalester's 'welcome center' project advances
The plans for this $100-million project hinge in part on a rezoning process that's expected to wrap up by the end of the month. The "first reading" of a project-related rezoning ordinance was held the week of January 6-10. The second reading and a public hearing were scheduled for January 15, followed by final adoption on January 22. A project narrative reveals plans for a five-story building with a welcome center on the main level and a 224-bed residence hall on the top four stories. Included in the welcome center plans are a large lobby space, offices for admissions staff, and a "coffee-type shop" that will eb open to the public. (Finance & Commerce)
 

Government & Regulation

Navigating the CTA and Beneficial Ownership Reporting

posted on 01.06.2025

In yet another twist, the 5th Circuit Court of Appeals has vacated its earlier stay of the preliminary injunction against the Corporate Transparency Act (CTA). This means that reporting companies are not currently required to file their Beneficial Ownership Information (BOI) report with FinCEN and are not subject to liability if they fail to do so while the injunction remains in place.

The appellate court has expedited the appeal to the next available oral argument panel, which, according to the Fifth Circuit's docket, is March 25, 2025.

In early December, however, a federal judge for the Eastern District of Texas questioned the constitutionality of a business being forced to report information as required by the CTA and enjoined the federal government from enforcing the act in advance of the January 1, 2025 filing deadline for non-exempt businesses.
 



What Does This Mean For You?

   • Filing Not Required: The nationwide injunction is currently in effect.
   • Stay Ready: This could change again pending further court rulings.
   • Consult Legal Advisors: If you're unsure about your next steps, consulting with your attorney is a good idea.

Companies may still voluntarily submit their BOI reports, if they choose.
 



Understanding the Corporate Transparency Act (CTA)
The Corporate Transparency Act requires specific businesses to disclose information about individuals who hold significant control over or ownership in the company. This transparency measure is designed to prevent illicit activities, such as money laundering and fraud, by making it clear who truly owns and operates a business.

At the heart of this requirement is the Beneficial Ownership Information (BOI) report, which must be submitted to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury. For purposes of the CTA, a "beneficial owner" includes anyone who either:

   • Holds at least 25% ownership in the company, or
   • Exercises significant control over company decisions.
 



Determining if Your Business Needs to File
Two primary categories of businesses are required to file under the CTA:

1.) Domestic Reporting Companies: U.S.-based entities like corporations, limited liability companies (LLCs), or other businesses formed through state filings.
2.) Foreign Reporting Companies: Companies created outside the U.S. but legally registered to conduct business within it.

Based on these requirements, most small businesses are going to be required to file. Certain businesses, however, are exempt from this requirement. Exemptions cover specific types of organizations, including banks, credit unions, large corporations, and insurance companies. In total, there are 23 exemptions, so companies unsure of their status should review this list to determine if they need to file.
 



Filing Deadlines and Requirements
As with all compliance filing requirements, meeting deadlines is crucial to avoid penalties. Filing requirements differ based on when a business was established:

   • Existing Businesses: If your company was created before January 1, 2024, your BOI report must be submitted by January 1, 2025.
   • New Businesses: Companies formed in 2024 have a go-day window from the time they receive public notice of their official formation.
   • Future Entities: For businesses formed after January 1, 2025, the BOI report is due within 30 days of registration.

Once filed, businesses are generally not required to update the report annually. However, if there are significant changes in beneficial ownership or if corrections are needed, the company must submit an updated BOI report. There is no requirement to report the termination or dissolution of a company.
 



Required Information for the BOI Report
The BOI report gathers essential information about beneficial owners to create a transparent ownership profile. Required details include:

   • Full legal name
   • Date of birth
   • Current residential address
   • A unique identification number (e.g. passport or driver's license number)

This information ensures the government has accurate and up-to-date records of individuals who control business entities within the United States.
 



How to File
Filing the BOI report is straightforward and cost-free. The process can be completed electronically via FinCEN's secure website: www.fincen.gov/boi.

 

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Content for this post was sourced from the following articles: Navigate the Corporate Transparency Act and Beneficial Ownership Reporting by Shauna Huntington for ForConstructionPros.com / Fortiviti; Update: Appeals Court Reverses CTA Decision, Stay Back in Effect by Kim Slowey for The Construction Broadsheet; and Corporate Transparency Act Update: Filing Not Required for Now by BLD Connection.

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