MBEX Has the Scoop

Building Buzz: July 8 - 12

We're reading the headlines so you don't have to.

From North Dakota's largest in the world greenhouse project to DEED announcing $1M for contamination clean-ups to Mortenson's selection to build the Tampa Bay Rays baseball stadium, here's what was buzzing in the building world the week of July 8 - 12, 2024 (plus a few more):
 

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JULY 5

Former YMCA sit in West St Paul could become housing
Developers are pursuing a plan to build hundreds of housing units on the former YMCA site in West St. Paul, a parcel the city has been looking to repurpose for years. Greco Properties and Swervo Development are envisioning as ,any as 461 market rate apartment units, public amenities and a new restaurant (located at the former AutoZone site) on the site of 150 Thompson Avenue East, along with adjacent city-owned properties. The developers are seeking tax-increment financing assistance from the city. They expect to make a formal proposal late this year or in early 2025. (Minneapolis - St. Paul Business Journal)
 

National construction job openings flat since April
The industry is still dealing with labor shortages despite unfilled positions falling over the past year. There were 339,000 construction job openings in May, a slight rise from April's total of 337,000, data from the U.S. Bureau of Labor Statistics showed. That's 28,000 less job openings compared to May 2023. More than half of contractors who responded to ABC's Construction Confidence Index want to add to their staff over the next six months. (Finance & Commerce)
 

Wisconsin schools awarded grants for training students for careers in trades
A $408,123 grants for technical education equipment is coming for 17 high school districts across Wisconsin. The money comes from a round of Wisconsin Fast Forward Grants and will compensate schools for buying and installing equipment for vocational training, as schools look to train students for career paths involving robotics, welding, plasma cutting, 3D printing, drones and more, officials said. (Finance & Commerce)
 

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JULY 7

Energy company plans $621M South Dakota wind farm
Deuel Harvest Wind Energy South LLC has filed an application with the South Dakota Public Utilities Commission for the permits necessary to build and operate a $621-million wind farm in the state's Deuel County. The project, spanning multiple townships, would be built on private land, according to the company's almost 4350-page application document, and would include: (1) up to 68 wind turbines; (2) a 34.5 kilovolt (kv) to 345 kv collector substation with transformer containment area, control enclosure, overhead bus and related items, circuit breakers, disconnect switches, relay panels, surge arresters, battery banks and grounding system, as well as relaying, metering and communication equipment; (3) an approximately six-mile long 345 kv generator transmission tie line, which will carry the electricity of the wind farm from the collector substation to an interconnection switchyard; (4) up to three, self-supporting meteorological towers (MET) no higher than the hub height of the turbines; (5) up to two aircraft detection lighting system (SLS towers) as high as 200-feet and equipped with red lights and other equipment that will provide nighttime visibility to pilots; and much more. (The Construction Broadsheet)
 

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JULY 8

Change of plans: Converting office buildings into other uses
Larger companies' office needs have been changing for a while and have been significantly impacted by the pandemic. Other factors are driving conversions of office spaces as well. There is higher demand for residential, hospitality, and mixed-use spaces driven by population growth and changing urban lifestyles. The need for sustainability has certainly influenced office building conversions, too, as well as market forces rewarding developers adding to a city's housing supply. (Finance & Commerce)
 

Data-center debate
The data-center boom isn't new, but the rate at which these projects are being planned, proposed and built is quickly escalating. And while data centers once were concentrated in a few key markets, they're now fanning out to metro areas all over the country. Data centers are booming in large part because of how digitally interconnected the world has become. The advancement of generative artificial intelligence also is ramping up data requirements. (Minneapolis - St. Paul Business Journal)
 

GSA adopts new accessibility guidelines for federal properties
The rule establishes that pedestrian facilities in the public right-of-way are readily accessible to and usable by people with disabilities. U.S. General Services Administration's (GSA) action creates a uniform federal standard that aims to ensure all new and modified pedestrian facilities, such as sidewalks and crosswalks, are accessible and meet the Architectural Barriers Act of 1968, as amended. The new rule requires enhanced accessibility features, including pedestrian signals and alternate access routes. (Building Design + Construction)
 

North Dakota Tribe's greenhouse project to be among largest in world
A Native American tribe in North Dakota will soon grow lettuce in a giant greenhouse complex that when fully completed will be among the country's largest, enabling the tribe to grow much of its own food decades after a federal dam flooded the land where they had cultivated corn, beans and other crops for millennia. Work is ongoing on the Mandan, Hidatsa, and Arikara Nation's 3.3-acre greenhouse that will make up most of the Native Green Grow operation's initial phase. The tribe will spend roughly $76-million on the initial phase, which also includes a warehouse and other facilities near the tine town of Parshall. It plans to add to the growing space in the coming years, eventually totaling about 14.5-acres, which officials say would make it one of the world's largest facilities of its type. (Finance & Commerce)
 

Opus to build industrial facility in Dayton, lands tenant
The development arm of Minnetonka-based Opus Group purchased the site of what will house the new 132,200-square-foot distribution and light manufacturing warehouse, called Dayton Parkway Business Center. The building will have a clear height of 28-feet, 19 dock doors, four drive-in doors, 136 parking stalls and 14 trailer parking stalls, according to a news release. Amenities include natural light and motion-activated occupancy sensors. (Minneapolis - St. Paul Business Journal)
 

Solar manufacturer considers vacant building in Rogers
Canada-based Heliene, a designer and builder of solar modules, is interested in leasing the entire 227,000-square-foot building at 13225 Brockton Lane as part of its expansion in Minnesota, according to city officials. The company has an existing facility in Mountain Iron. Heliene would lease the Rogers building and invest $16-million in the facility, including about $12-million in machinery and equipment and $4-million in building and site improvements, the city said. (Finance & Commerce)
 

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JULY 9

ABC's Construction Backlog Indicator inched higher in June
Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.4 months in June, according to an ABC member survey conducted June 20 to July 13. The reading is down 0.5 months from June 2023. The entire decline in backlog observed over the past calendar year is attributable to the Middle States and Northeast. Backlog in the South and West regions was unchanged between June 2023 and June 2024. Readings for sales and staffing levels fell slightly in June, while the reading for profit margins improved. All three readings remain above the threshold of 50, indicating expectations for growth over the next six months. (Contractor Mag)
 

DEED announces nearly $1M in contamination cleanup grants
DEED's Contamination Cleanup Grants cover up to 75% of the costs of removing contamination at approved polluted sites. The remaining costs are covered by cities and counties, other units of local government and private landowners and developers. This grant round will lead to the investigation or clean up of more than 12-acres of contaminated land and is expected to create 67 jobs, add more than $1-million to the local tax bases and create 353 housing units. More than $84-million in private investment is expected to be leveraged from the six projects. The six projects are as follows:

(1) City of Bloomington - $550,692
For cleanup funding for a 7.06-acre site contaminated with asbestos. The site will be redeveloped into a 4-story, 208-unit apartment building and an 11,000-square-foot commercial building to be operated as a daycare.

(2) City of Dundas - $19,125
Investigation funding for a 1.5-acre site likely contaminated by agrichemicals. This site may be redeveloped as multi-family housing or as mixed-use commercial and residential.

(3) City of Mankato - $76,770
Cleanup funding for a 0.33-acre site contaminated with petroleum and other contaminants. This site will be redeveloped into a 4-story mixed-use building with 26 market-rate apartments and 1,400-square-feet of commercial space.

(4) City of St Paul - $138,944
Cleanup funding for a 2.2-acre site contaminated with petroleum and other contaminants. This site will be redeveloped into a mixed-use site which includes 40,000-square-feet of commercial space with 60 affordable housing units.

(5) City of Wabasha - $16,650
Investigation funding for a 0.54-acre site. The site will be redeveloped into an apartment building with 50 units.

(6) City of White Bear Lake - $175,200
Cleanup funding for a 0.67-acre site contaminated with petroleum and other contaminants. This site will be redeveloped into two townhome buildings, consisting of nine residential units. (Press Release - Minnesota Department of Employment and Economic Development)
 

Wisconsin projects get $26M in RAISE grants
Two Wisconsin projects will get federal transportation grants with nearly 150 other winners across the country. A $25-million grant will go to reconstruct the Valley Transit Center in Appleton starting in 2026. Additionally, more than $1.1-million will go to planning and designing two bike and pedestrian bridges over highways around Waukesha. The money comes from a $1.8-billion investment from the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program, the U.S. Department of Transportation announced in June. The competitive program awarded funding to 148 projects across the U.S. (Finance & Commerce)
 

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JULY 10

Aki's Breadhaus to move, expand in northeast Minneapolis
The German-style bakery is staying in northeast Minneapolis but moving a couple of miles away to 1712 Marshall Street Northeast, where it'll share a building with Broken Clock Brewing Cooperative and Curioso Coffee Bar. The new spot will be about five times bigger than its current location on Central Avenue at more than 6,000-square-feet. The Marshall Street location will have just over 60 seats and ample parking. Aki's is also adding a wine bar. Minneapolis-based Shea is helping with design. The infrastructure will be built to allow further expansion in the space, too. (Minneapolis - St Paul Business Journal)
 

Chase Bank, city at odds over plans for new Minneapolis branch
JPMorgan Chase & Co asked the city of Minneapolis and its Planning Commission for a zoning variance to allow it to build a 1-story, 3,885-square-foot branch on a 16,510-square-foot site on a site located along 26th Avenue South just north of East Lake Street. At a June 10th Planning Commission meeting, the city said it would consider adopting the variance request because the branch would be an asset to the community. However, the Planning Commission has ultimately rejected the variance request, siding with a staff report saying the building does not meet density requirements for the area. (Minneapolis - St. Paul Business Journal)
 

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JULY 12

Rays select builder for $1B stadium project
The Tampa Bay Rays have picked a company to build their new billion-dollar ballpark, and the team selected is Minneapolis-based company Mortenson Construction. The $1.3-billion project would see St. Petersburg contribute $287-million, while Pinellas County and the Rays would put in $312-million and $770-million, respectively. The project is expected to be completed by Opening Day in 2028. (Spectrum News - Bay News 9)
 

Building Buzz: April 29 - May 3

We're reading the headlines so you don't have to.

From Nordic Ware's solar facade to Minnesota's $980-million bonding bill and 'fab lab' grants in Wisconsin to expanding prevailing wage mandates, here's what was buzzing in the building world the week of April 29 - May 3, 2024:
 

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APRIL 29

Minnetonka assisted-living facility plans 81-unit expansion
Stonecrest Living, the Minnetonka-based operator behind The Landings of Minnetonka, is proposing to expand its existing facility with a 4-story, 81-unit addition. Stonecrest is expected to present a sketch plan to the city's Planning Commission. Units in the new addition would include studios and one-bedroom units, according to the concept plan. The building addition would replace an existing 5-stall garage on the property. (Minneapolis - St Paul Business Journal)
 

Nordic Ware's headquarters features solar façade
Blaine-based Cedar Creek Energy partnered with Nordic Ware on the array, which generates about 450,000-kilowatts of electricity for the kitchenware company's energy-intensive manufacturing building at 5005 Highway 7. In an unusual twist, the solar project team installed the panels on the façade instead of the roof --- an approach that made sense in part because multiple building expansions had created a "patchwork" of roof lines, according to Cedar Creek, a Blaine-based designer and installer of sun-powered energy systems. (Finance & Commerce)
 

Single-family housing starts up, multi-family down in April
Momentum continues to build for single-family housing starts in the Twin Cities as April brought another big jump in local building activity. But the slump for apartment construction continues. During the past month, cities in the 13-county metro area permitted 656 new housing units overall (up 5% from April 2023), including 541 new single-family homes (up 40%) and 115 new multi-family units (down 51%), according to the Keystone Report, which tracks permits in the 13-county metro area. The combined value of permits is $208.9-million (up 28%). (Finance & Commerce)
 

'Workforce Hub' designation to boost Milwaukee's efforts to replace lead pipes
The White House announced Milwaukee as one of four new Workforce Hubs under the Bipartisan Infrastructure Law to reduce its timeline for replacing 100% of its lead pipes from 60 years to 10 years in the latest proposed U.S. Environmental Protection Agency rule, federal officials said. The EPA and Department of Transportation will help train workers and scale up the workforce for lateral replacements, but it's not clear yet how much money is included. The White House named upstate New York, Michigan, and Philadelphia as three other hubs. (Finance & Commerce)
 

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APRIL 30

MAC names new director of governmental affairs
The Metropolitan Airports Commission, which oversees Minneapolis-St Paul International Airport and other Twin Cities airports, selected Dana Nelson to serve as director of governmental affairs. She will act as an intergovernmental liaison with federal, state and local governments on behalf of MAC. (Minneapolis - St Paul Business Journal)
 

Panel says future of CRE is mixed-use, conversions
During a panel discussion hosted by MNCAR about the revitalization of commercial real estate after the pandemic, panelists discussed how the industry can tackle the problems presented by the exodus of office workers to the hybrid work-from-home model. Most solutions revolve around redevelopment and use-conversion. Dan Salzer, the director of development for Scannell's Twin Cities office and a panelist, talked through how many suburban office campuses no longer have a demand for the space they currently have and have been downsizing. The result, Salzer said, is that these sprawling campuses are rezoned to mixed-use and become sites for industrial development and new housing. (Finance & Commerce)
 

Testifiers offer mixed reviews for $980M bonding bill
Testifiers of at the meeting of the House Capital Investment Committee took turns at the lectern to praise the $980-million bill for funding their projects --- or, in many cases, to complain that the measure doesn't go far enough to address needs such as deferred maintenance. The committee was expected to take a vote the morning of May 1st. Requiring a three-fifths majority for passage, bonding needs to get buy-in from both sides of the aisle. (Finance & Commerce)
 

Xcel sells land in Minnesota for $1B data center
Elk River Technologies LLC, previously identified as the mystery company behind a plan to build the data center at Xcel's Sherco site, purchased the 348-acres for &7.97-million, according to a public filing with the Minnesota Department of Revenue. Plans for the sale --- as well as the potential dollar value of the project --- were disclosed in 2022. In a statement, Xcel reiterated the scope of the development, issuing a statement calling it "a $1-billion capital investment in the Becker community." Xcel confirmed the sale, adding that Elk River Technologies' data center project would create 100 high-paying permanent jobs and more than 1,200 construction jobs. (Minneapolis - St Paul Business Journal)
 

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MAY 1

Artist apartment project bonds move to council
The Minneapolis Business, Housing and Zoning Committee approved up to $31-million of tax-exempt multi-family housing revenue bonds for the Northrup King Residential project at 1460 and 1464 Van Buren Street Northeast. The income-restricted, affordable housing project will have 84 units and 8,100-square-feet of commercial space. The reconstruction is on the Northrup King Campus and will span three of the buildings. Public documents say 23 of the units will have one bedroom, 35 will have two bedrooms and the remaining 26 will have three bedrooms. (Finance & Commerce)
 

Despite numerous challenges, electric air taxis could arrive by early 2025
Imagine a future with nearly silent air taxis flying above traffic jams and navigating between skyscrapers and suburban drone ports. Transportation arrives at the touch of your smartphone and with minimal environmental impact. This isn't just science fiction. United Airlines has plans for these futuristic electric air taxis in Chicago and New York. The U.S. military is already experimenting with them. And one company has a contract to launch an air tax service in Dubai as early as 2025. Another company hopes to defy expectation and fly participants at the 2024 Paris Olympics. Electric aviation promises to alleviate urban congestion, open up rural areas to emergency deliveries, slash carbon emissions and offer a quieter, more accessible form of short-distance air travel. (Finance & Commerce)
 

Half a million in 'fab lab' grants for Wisconsin STEAM students
Governor Tony Evers and Missy Hughes, secretary of the Wisconsin Economic Development Corporation (WEDC) announced nearly $500,000 in "fab lab" grants to 18 school districts statewide for student training for science, technology, engineering, arts and mathematics (STEAM) skills. A fab lab, short for fabrication laboratory, is a workshop equipped with computer-controlled manufacturing elements such as 3D printers and laser engravers. In 2016, WEDC started the Fab Labs Grant Program to support equipment purchases to educate K-12 students. (Finance & Commerce)
 

Historical society faces uphill fight to preserve Richfield's oldest home
From the uneven wood floors and buckling walls to the badly deteriorated roof, Riley Bartholomew's former home needs extensive work. But finding money to make those repairs --- or to even get a detailed cost estimate --- is a heavy lift for the Richfield Historical Society, which functions on the efforts of one part-time employee and a handful of volunteers. Bartholomew, a founding father of Richfield and public servant who chaired the committee charged with naming the city, probably had no idea that people would still be talking about his modest little home more than 170 years after it was built --- and fighting desperately for its future. (Finance & Commerce)
 

House panel approves bonding bill
The House Capital Investment Committee approved the $980-million bonding bill, which will no go before the House Ways and Means Committee. The committee also signed off on House File 5162, which offers $38.7-million in general fund money for various projects. Heavy on asset preservation, the bonding bill supports projects ranging from upkeep of higher education buildings to bridge improvements across the state. (Finance & Commerce)
 

Panel urges city financial support for retail development
The panel, presented by the Minnesota Shopping Center Association, discussed how the interest rate environment became so difficult so quickly that building became a difficult choice for many assets. However, commercial retail developments are not receiving the local tax increment financing or other financial help that a multi-family asset might see. (Finance & Commerce)
 

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MAY 2

House OKs bill that expands prevailing wage requirements
House File 5242, approved by a 60 to 60 vote on the House floor, allocates nearly $79-million in trunk highway funds to a variety of transportation projects, much of which would go to "high-priority" bridges ($40-million) and facilities improvements ($20.1 million). But union leaders and contractor representatives are paying particular attention to the bill's labor provisions, including language that would expand prevailing wage mandates to certain multi-family housing projects receiving Low-Income House Tax Credits (LIHTC) or Tax Increment Financing. (Finance & Commerce)
 

Wisconsin groups support next generation of STEM workers
Contractors, utilities and public officials had something to offer to local students interested in construction and science, technology, engineering and mathematics (STEM). Different groups awarded scholarships, recognition and partnerships to schools and students interested in construction and STEM fields. One partnership between contactors and a school will create a new learning laboratory at a Wauwatosa high school, officials said. Here's what groups did the week of April 29-May 3 to support the next generation. (Finance & Commerce)
 

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MAY 3

Dunn Bros. Coffee plans franchising expansion to 250 locations
Twin Cities coffeehouse chain Dunn Bros. is planning a major franchise expansion, with a goal of reaching 250 stores in the next five years. Trade publication QSR has a report on the effort by Minneapolis-based Dunn Bros. Coffee, which currently has about 50 stores in seven states. About half of those locations are in Minnesota. The chain would likely building out its presence in its existing markets like Texas, the Dakotas, Iowa, Missouri and Wisconsin. Because coffee is so baked into peoples' morning routines, drive-thrus are "going to be essential for the growth pattern moving forward, because consumers want to grab their stuff and go in the morning." (Minneapolis - St Paul Business Journal)
 

Nearly 300 apartments planned for Shoreview brownfield site
Enclave Properties is going before the City Council with its plans to develop 295 affordable and market-rate apartments and 4,500-square-feet of commercial space on the city-owned brownfield site at 3377 Rice Street, the former home of a Ramsey County public works facility. The 11-acre site needs about $1-million worth of additional cleanup to bring it to residential standards. The developer hopes to begin construction as soon as this fall. (Finance & Commerce)
 

Building Buzz: April 22 - 26

We're reading the headlines so you don't have to.

From the FTC banning noncompete agreements to Blaine's $750M downtown development project near the National Sports Center and Nestle Purina's expansion in Wisconsin to Minnesota receiving federal grants to support more residential solar power, here's what was buzzing in the building world the week of April 22 - 26, 2024:
 

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APRIL 22

Effort to revive Minneapolis 2040 plan moves forward in Minnesota House
A version of the bill that would exempt cities' comprehensive plans from certain lawsuits under the Minnesota Environmental Review Act has made its way into the state and local government supplemental budget bill. This policy would exempt comprehensive plans from being sued under MERA for creating dense housing and would be retroactive to March 2018. The policy was amended into the supplemental budget bill on April 18th with a unanimous voice vote by the State and Local Government Finance and Policy Committee. The retroactive nature of the policy would create protection for the city of Minneapolis' 2040 Comprehensive Plan, a plan that removed single-family-only zoning and has been cited by researchers as being a reason for Minneapolis keeping its rent increases lower than the rest of the nation. However, a lawsuit against the plan, under MERA, brought its implementation to a halt. (Finance & Commerce)
 

Minnesota among states receiving federal grants to support residential solar power
Federal grants of $7-billion are being awarded by the Environmental Protection Agency, which unveiled the 60 recipients on April 22nd. The projects are expected to eventually reduce emissions by the equivalent of 30-million metric tons of carbon dioxide and save households $350-million annually, according to senior administration officials. The Minnesota Department of Commerce is set to receive $63.45-million to support residential solar installations for low- and middle-income communities across the state, including Tribal communities. (Finance & Commerce)
 

Ryan envisions industrial, housing for Thomson Reuters site in Eagan
Minneapolis-based Ryan Cos. US Inc. is unveiling preliminary plans to potentially bring hundreds of new housing units and more than a million square feet of industrial uses to a big chunk of the former Thomas Reuters office campus in Eagan. An Eagan city staff report reveals that the developer's proposed land uses for the 179-acre redevelopment site includes 1.2-million to 1.5-million-square-feet of industrial uses in three to seven buildings on the eastern part of the site. No specific users have been identified. Also proposed are 70 to 140 single0family homes on the southwest, and 80 to 180 townhome units on the northwest. The site if off Dodd Road / Highway 149 near the Interstate 494 and Interstate 35E interchange. (Finance & Commerce)
 

Ryan plans housing, industrial space at Thomson Reuters campus in Eagan
Ryan Cos. US Inc. is proposing up to 320 residential units and light-industrial uses in its plan to redevelop a significant portion of the former Thomson Reuters campus in Eagan. The Minneapolis-based developer, which announced earlier this year its intent to purchase 179-acres of Thomson Reuters' 263-acre campus, is expected to present its newly unveiled plans to the city's Advisory Planning Commission. (Minneapolis-St Paul Business Journal)
 

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APRIL 23

FTC announces rule banning non-competes
The Federal Trade Commission (FTC) has issued a final rule banning non-competes nationwide, protecting the fundamental freedom of workers to change jobs. The final rule is expected to result in higher earnings for workers, with estimated earnings increasing for the average worker by an additional $524 per year, and it is expected to lower health care costs by up to $194-billion over the next decade. (Contractor Mag)
 

Palermo's Pizza plans 200,000-square-foot production facility in West Milwaukee
The pizza production facility at 3900 West Lincoln Avenue will provide 50 new skilled labor positions, officials said. The site was home to the former Froedtert Malt / Malteurop plant. The facility will be developed and constructed by Milwaukee-based The Dickman Company, Brookfield-based Briohn Builders and Fond du Lac-based Excel Engineering, officials said. Plans must be approved by West Milwaukee's Plan Commission, Community Development Authority and the Village Board. Palermo expects to break ground in August and have the building completed in June 2025. (Finance & Commerce)
 

PPL seeks rezoning for $5M mixed-use project in St Paul
St. Paul's affordable housing stock is poised to grow as a local development team pushes ahead with plans for a 60-plus unit apartment building with commercial space on a long-vacant site at the northeast corner of East Seventh Street and Minnehaha Avenue. Project for Pride in Living of Minneapolis is going before the City Council with a request to rezone the property at 892 East Seventh Street from "general business" to "traditional neighborhood," a key box to check in the entitlement process. The new building would be 55-feet high and the existing zoning limits structures to 30-feet, said Chris Hong, a St. Paul city planner. (Finance & Commerce)
 

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APRIL 24

Biden administration finalizes rule to grant overtime pay for millions more salaried workers
The move marks the largest expansion in federal overtime eligibility seen in decades. Starting July 1, employers will be required to pay overtime to salaried workers who make less than $43,888 per year in certain executive, administrative and professional roles, the Labor Department said. That cap will then rise to $58,656 by the start of 2025. (Finance & Commerce)
 

Blaine looking to seize opportunities for ambitious redevelopment
A development team led by Elevage and Bader is expected to break ground in July on the first phase of a 40-acre mixed-use development planned for parcels east of Blaine's National Sports Center complex and west of the intersection of 105th Avenue and Radisson Road, Blaine community development director Erik Thorvig said in an interview. The three-phase project, which will feature a pedestrian-friendly core with restaurants, hotels, and entertainment uses, could be complete by 2030. (Finance & Commerce)
 

DOL will raise overtime salary threshold to $44K in July, $59K next year
The U.S. Department of Labor said it will publish a final rule raising the Fair Labor Standards Act's minimum annual salary threshold for overtime pay eligibility in a two-step process. Starting July 1, the threshold will increase from $35,568 to $43,888 per year. It will then increase to $58,656 on January 1, 2025. The changes will expand overtime pay eligibility to millions of U.S. workers, the agency said. DOL's 2025 threshold represents a jump of about 65% from the Trump administration's 2019 rule and is slightly higher than the $55,068 mark that DOL proposed in 2023. (Construction Dive)
 

March's Architecture Billings Index reports significant drop from previous month
In a large drop from February, the AIA's Architecture Billings Index for March has reported a decline in billings for the 14th consecutive month. The score for March was a low 43.6, down from 49.5 --- a 5.6 difference. Any score below 50 marks a decline in billings from the previous month. In February, the AIA was optimistic, saying the slightly improved index suggested "the recent slowdown may be receding." March's number spoke otherwise, however. White inflation and supply chain issues have eased since 2023 and 2022, the AIA noted in the March index they may still be affecting economic conditions in the architecture industry. (The Architect's Newspaper)
 

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APRIL 25

Blaine starting $750M downtown development near National Sports Center
The City of Blaine published a master plan outlining the new, $750-million redevelopment project located west of the intersection of 105th Avenue and Radisson Road. After two years of planning, the city expected the redevelopment to start mid-20204. Blaine-based Elevage Development Group and St. Louis-based Bader Development are leading the project. (Minneapolis - St Paul Business Journal)
 

Developer plans commercial, multi-family and single-family at Shakopee gravel pit site
The development, which is at the southwest corner of Mystic Lake Drive and 17th Avenue East, will be split into two phases of development over six years, consisting of potentially 534 apartment units, 98 townhomes, 223 single-family homes, as well as 174,300-square-feet of mixed-use commercial sites. Twenty-four acres will be reserved for open space. Also housed on the property will be a 97,000-sqyuare-foot water treatment plant that will be owned and operated by the Shakopee Public Utilities Commission. (Finance & Commerce)
 

Element Indoor Golf, Mulligans plan new Minneapolis / St Paul locations
In Burnsville, the Planning Commission recommended the full City Council approve a 13,000-square-foot Element Indoor Golf facility in a vacant space within Burnside Plaza at 14314 Burnhaven Drive. If approved, the facility would include 12 golf simulator bays, a full bar and kitchen and other activities like pull tabs. Currently, Element as one location in Vadnais Heights that opened in 2019. Bradley Wohlers with Element cited the growing interest in golf simulators as the main reason for expansion. According to a 2023 survey from the National Golf Foundation, an estimated 6.2 million American used a golfing simulator in 2023, compared to just under 4-million in 2019. (Minneapolis - St Paul Business Journal)
 

Falling CRE values may bring challenges for redevelopment efforts
According to the Minneapolis Foundation's Downtown Next report, the 29 most valuable parcels lost 14.7% of their tax-assessed value between 2019 and 2023. Those properties alone provide 4% of Hennepin County property tax receipts./ Downtown Minneapolis' remaining commercial parcels deliver another 7% to county coffers. The four-year decline in tax-assessed values likely understates the problem. Last summer, Minneapolis' LaSalle Plaza (800 Lasalle Avenue) fetched less then $50-million at auction, a sharp discount to its $87.3-million tax assessment. In February, the Kickernick building (416 First Avenue North) sold for $3.8-million, undershooting a recent $7-million tax assessment. In downtown St. Paul, the Cosmopolitan Apartments (250 6th Street East) sold for $33.9-million earlier this year, according to a certificate of real estate value --- well under its $45-million tax valuation. (Finance & Commerce)
 

How U.S. changes to 'noncompete' agreements and overtime pay could affect workers
In one move, the Federal Trade Commission voted to ban noncompete agreements, which bar millions of workers from leaving their employers to join a competitor or start a rival business for a specific period of time. The FTC's move, which is already being challenged in court, would mean that such employees could apply for jobs they weren't previously eligible to seek. In a second move, the Biden administration finalized a rule that will make millions more salaried workers eligible for overtime pay. The rule significantly raises the salary level that workers could earn and still qualify for overtime. (Finance & Commerce)
 

North Minneapolis food hall Swank Eatery could revamp troubled 4th Street Saloon site
The vision is still early in the process --- Teto Wilson is hoping to close on the roughly 13,000-square-foot building within the month. The timeline is still unclear, but he hopes to open the doors next summer or in early 2026. Wilson is buying the troubled 4th Street Saloon on West Broadway Avenue with plans to renovate it into a food hall called Swank Eatery, which he hopes will bring new offerings to a food desert, create jobs and bring wealth-building opportunities to the neighborhood. (Minneapolis - St Paul Business Journal)
 

Project for Pride in Living plans affordable housing in St. Paul's Dayton's Bluff
PPL petitioned the city to rezone a commercially zoned vacant property at 892 East 7th Street from B3 general business to T3 traditional neighborhood. The St. Paul City Council voted to approve the rezoning request. PPL is partnering with Minneapolis-based developer Soul Community Development on the project. According to city documents, the developers are planning a mixed-use apartment build that would include at least 60 units of affordable housing and 40,000-square-feet of ground floor commercial space. The commercial space would provide community services such as childcare, a clinic and a food hall incubator. (Minneapolis - St Paul Business Journal)
 

Ryan pitches Woodbury warehouse, design suggests Amazon as user
The Minneapolis-based real estate developer has submitted plans for what it's calling "Project Wrangler," a proposed 225,550-square-foot delivery station / warehouse on an over 46-acre site near the intersection of Settlers Ridge Parkway and Hudson Road in Woodbury. The site, which runs along Interstate-94, is located near an existing sorting center for Seattle-based Amazon.com Inc. and is adjacent to the 3M Co. spinoff Kindeva Drug Delivery facility. Both Amazon and Kindeva's facilities were developed by Ryan. (Minneapolis - St Paul Business Journal)
 

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APRIL 26

Multi-family market showing signs of recovering
Since the first quartter of 2023, transactions on multi-family assets have increased 37.5%, according to a 2024 report by Michel Commercial Real Estate. Michel Vice President Heidi Addo said because interest rates were rising throughout 2023, there was uncertainty, but now, despite no decline in interest rates, investors are more confident because rates have held steady. (Finance & Commerce)
 

Nestle Purina plans $195M expansion in Wisconsin
The pet food maker Nestle Purina PetCare Company will invest $195-million to expand its factory in Jefferson, Wisc. by 35,000-square-feet to increase its wet door production by 50%. The expansion is expected to bring 100 jobs. The project is supported by the Wisconsin Economic Development Corporation, which authorized up to $1.7-million performance-based tax credits over the next five years, governor's officials said. But the actual amount of tax credits Purina will receive depends on how many jobs are created and the amount of capital investment during that period. (Finance & Commerce)
 

Building Buzz: March 18 - 22

We're reading the headlines so you don't have to.

From the EPA banning the last form of asbestos in the United States to a $40M senior project in Lake Elmo to a bipartisan bill in Wisconsin boosting EV infrastructure across the state, here's what was buzzing in the building world the week of March 18 - 22, 2024:

 

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MARCH 18

Advocates win planning grant to redesign Olson Memorial Highway
The federal government awarded $1.6-million to a Minneapolis advocacy group to study redeveloping Olson Memorial Highway as a transit-and-pedestrian-oriented boulevard. Highway 55 is currently one of Minneapolis' deadliest streets. Advocates want to address that and restore a long-lost commercial district that the highway paved over. MnDOT is already making plans to narrow the highway, which the 1990s construction of I-394 made redundant. (Axios Twin Cities)
 

Biden signs strong budget for inland waterways construction
The fiscal year 2024 budget for the U.S. Army Corps of Engineers was included in a funding package for six federal agencies that was signed by Biden on March 8th, providing a health infusion of funds to continue maintenance and modernization of the inland waterway system. Overall, the bill provides $8.7-billion for the Corps through September 30th, an increase of $1.27-billion over what the Biden Administration had proposed for FY24. (Work Boat)
 

Business Confidence Gaining Momentum Among CEOs
According to a new report out from California-based advisory group Vistage, business confidence among small- and mid-sized business owners is gaining momentum. Vistage surveyed a number of CEOs from a variety of industries, including construction. When it comes to construction, 16% of business owners said they expect the economy to improve in the year ahead, while 47% expect it to remain about the same, 36% expect it to worsen, and 1% don't know/don't have an opinion. (For Construction Pros)
 

Dollar General plans 800 stores this year as rival Dollar Tree pulls back
One month after opening its 20,000th store, Dollar General said during an earnings call that it plans to open 800 more new stores, remodel 1,500 locations and relocate 85 stores this year --- 2,385 real estate projects overall. The news comes one day after chief rival Dollar Tree Inc. said it plans to close about 600 of its Family Dollar locations this year and an additional 400 stores under both banners in the coming years as leases expire. (Construction Dive)
 

EPA bans last form of asbestos used in United States
The US Environmental Protection Agency said that it is taking a "historic" step by banning ongoing uses of asbestos, which has long been linked to multiple types of cancer. The agency's announcement of the final rule applies to chrysotile asbestos, the only form of asbestos currently being used in or imported to the United States. It is the most common type of asbestos used in the world, used in car parts such as aftermarket automotive brakes and linings and other vehicle friction products and gaskets. It's been banned in 50 other counties. (CNN Health)
 

Golf center planned near Mystic Lake Casino
A new golf driving range and entertainment center in Prior Lake is expected to begin construction this spring, according to a press release from the Shakopee Mdewakanton Sioux Community. The center will be the first in the United States for Launchpad Golf, a Canadian company that has established golfing facilities in that country. The facility will be a two-story, 25,000-square-foot building with the ability to serve over 500 people. It will include 40 heated golf suites, a restaurant and two bars. (Finance & Commerce)
 

LaunchPad Gold to open large attraction at Mystic Lake in Prior Lake
The facility will feature a 160,000-square-foot driving range anchored by a 25,000-square-foot building featuring 40 heated golf suites, two bars and a full-service restaurant. The idea is comparable to the indoor/outdoor concept of Topgolf, where golfers can socialize and play golf games year round. According a new release announcing the partnership, it will be the first LaunchPad Golf facility to open in the United States. Construction will begin as early as this spring and the facility is expected to open in mid-2025. (Minneapolis - St Paul Business Journal)
 

Milwaukee Plan Commission to review 32-story mass timber project
Madison-based The Neutral Project introduced plans for The Edison, a 381-unit apartment tower with street-facing retail at 1005 North Edison Street. The developer wants to break ground in September and complete construction in 2027, but they must get approval from the Milwaukee Plan Commission first. Chicago-based Hartshorned Plunkard Architecture submitted plans to the city with renderings, details about the design and sustainability features. According to the plans, The Edison will be built where a historic timber yard once was. (Finance & Commerce)
 

Research explores safer work zones for flaggers
Flaggers directing traffic in work zones have an especially dangerous job, since they are charged with stopping distracted or aggressive drivers from entering work zones. Working directory with maintenance workers to ensure their needs and expectation were met, researchers developed and test two smart sign systems: both a Stop/Slow paddles, similar to what flaggers traditionally use, and a portable traffic signal prototype were modified to include vehicle trajectory tracking and audiovisual warning capabilities. (Finance & Commerce)
 

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MARCH 19

EPA asbestos ban is '30 years in the making'
The final rules marks a major expansion of EPA regulation under a landmark 2016 law that overhauled regulations governing tens of thousands of toxic chemicals in everyday products, from household cleaners to clothing and furniture. The new rule would ban chrysotile asbestos, the only ongoing use of asbestos in the United States. The substance is found in products such as brake linings and gaskets and is used to manufacture chlorine bleach and sodium hydroxide, also known as caustic soda, including some that is used for water purification. (Finance & Commerce)
 

Fight over Midtown Greenway on-ramp will go before Minneapolis park board
Minneapolis park board members will meet to consider a plan to pave an on-ramp to the Midtown Greenway through a community garden. From I-35 to almost Bde Maka Ska, there are no access points to the greenway that comply with the Americans with Disabilities Act. This on-ramp would change that. Hennepin County planners disputed that construction would rob the garden of plantable square footage, the Star Tribune reported. (Axios Twin Cities)
 

Grant programs helps states build and connect trails across U.S.
The Biden administration was set to open applications for a new grant program that for the first time prioritizes not just building trails but connecting the existing ones. The 2021 bipartisan infrastructure law allowed for as much as $1-billion over five years for the program, but Congress has authorized less than $45-million so far. Still, trail activities say the commitment is almost as important as the dollar figure. (Finance & Commerce)
 

Milwaukee's Baird Center expansion exceeds minority business goal
When the project started, it had goals to assign 25% of its contracts to minority-owned businesses, 5% to women-owned businesses and 1% to disabled veteran-owned businesses. To date, the project engaged 25.3% minority-owned businesses, 16.5% women-owned businesses and 1% disabled veteran-owned businesses, reported James Methu, the community affairs and inclusion specialist at Gilbane Building Co., to the Wisconsin Center District board. (Finance & Commerce)
 

The Once and Future Shopping Mall
In the many decades since we started going to shopping malls, we have rarely stopped to ask what larger purpose, if any, they are supposed to serve. They are seen almost entirely as commercial enterprises designed to make a profit and respond to, and often create, consumer demand. Very littler has been written about malls as a social institution. But social values were very much on the mind of Victor Gruen, the Austrian-born designer who created the first enclosed mall in the United States, Southdale Center in suburban Minneapolis, in 1956. (Governing)
 

STUDY: Conversions could help revitalize downtown St Paul
Looking in part at the past to create a roadmap for the future, downtown St Paul boosters are counting on office-to-housing conversions like the Pioneer Endicott project to create a more vibrant central business district. In 2011, PAK Properties and Halverson and Blaiser Group Ltd. paid $1.1-million for the 1889-vintage, 350,000-square-foot Pioneer Endicott complex at 141 East Fourth Street in downtown St Paul and spent to $42-million turn the former offices into 234 apartments. With office building owners struggling to find tenants in the post-pandemic era, conversions are fashionable again --- and downtown St Paul is in a good place to capitalize on that trend, according to a new report from the Downtown Saint Paul Alliance. (Finance & Commerce)
 

Tennant rolls out compact floor-scrubbing robot
The X4 ROVR is a more compact robotic scrubber designed for smaller spaces, which can be monitored with a mobile application, email reports and an online portal. It's much smaller and self-guided needing less intervention from human hands (note the absence of the steering wheel included in older models of autonomous Tennant cleaners). It's equipped with a 10-gallon solution tank and can clean at a rate of up to 20,000-square-feet on a single full tank.  (Minneapolis - St Paul Business Journal)
 

United Properties plans $40M senior project in Lake Elmo
Minneapolis-based United Properties hopes to start pushing dirt soon on a $40-million, 147-unit senior housing community in Lake Elmo, the developer's fourth Amira-branded project in the Twin Cities. Amira Lake Elmo LLC, an entity related to United Properties, paid $756,000 in cash for the nearly 12-acre development site at 8695 Eagle Point Boulevard as part of an internal sale, according to a newly released certificate of real estate value. United Land LLC was the seller. (Finance & Commerce)
 

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MARCH 20

Anoka County, MnDOT launch review of Highway 10 expansion plan
The project, overseen by Anoka County and the Minnesota Department of Transportation, will expand Highway 10 from four lanes to six lanes on a 3.2-mile stretch between Round Lake Boulevard and Creek Meadow Drive in Coon Rapids. Additional work includes widening of shoulders, construction of wet ponds and infiltration basics, mill and overlay of existing pavement, wetland and floor plain mitigation, lighting and culvert improvements, and noise wall construction. The project is designed to relieve backups on stretches of highway that see up to two hours of congestion in peak hours. (Finance & Commerce)
 

Bipartisan bills boost EV charging network across Wisconsin
The new laws free up nearly $80-million in federal construction air and make it easier for gas stations, convenience stores and other businesses to operate the electric vehicle charging stations. The measures were backed by businesses and environmentalists alike and cheered as a way for Wisconsin to expand its electric vehicle charging network. (Finance & Commerce)
 

Judge throws out lawsuit against Minneapolis church redevelopment
Hennepin County District Court Judge Lois Conroy ruled in favor of the city of Minneapolis and the project's developers --- an entity called Beard Manager LLC --- after neighboring property owner Dan Murphy alleged the city erred in granting approvals for the project. The project is located at the site of the former Lake Harriet Christian Church, at 5009 Beard Avenue, a few blocks east of the 50th & France shopping district. The project seeks to replace the church with a 5-story, 63-unit apartment building and 1,500-square-feet of commercial space. (Minneapolis - St Paul Business Journal)
 

Rachel acquires golf course site, faces lawsuit to stop development
St. Michael-based Rachel Development Inc. paid $4.7-million for the old Mississippi Dunes Golf Course site, where it plans to create 377 single-family housing lots, according to a certificate of real estate value made public. The City Council approved the project in February, despite pushback from residents. During a contentious City Council meeting, residents raised concerns about potential impacts to bee populations, mussels, endangered species, birds, trees and more. (Finance & Commerce)
 

United Properties plans Amira senior housing project in Lake Elmo
Finance & Commerce talks with the Minneapolis-based developer about its plans for a $40-million, 147-unit senior housing community called Amira Lake Elmo. Construction is set to begin this spring, with an opening possibly by mid-2025. (Minneapolis - St Paul Business Journal)
 

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MARCH 21

Permitting reform bills introduced to Minnesota Legislature
Efforts to streamline environmental permitting in Minnesota are getting attention of state lawmakers on the heels of a recent study that links permitting reform to economic growth. The Minnesota Chamber of Commerce and other organizations are backing two newly introduced bills designed to simply the time-consuming process of obtaining air, water, and wetland permits for projects. (Finance & Commerce)
 

Wisconsin school referendums seek $1.3B in repairs and operating costs
Wisconsin schools in April will ask voters to approve more than $1.3-billion for building repairs, maintenance and operating costs. This includes a quarter-billion-dollar revenue increase for Milwaukee Public Schools, which has received different responses from the city business community and its leadership. In April 2023, there were 83 referendums that sought to increase local property taxes for K-12 schools; 46 were approved, or over $600-million of the nearly $1.2-billion districts asked for that year. There will be 91 referendums on the April 2nd ballot, according to data from the Wisconsin Department of Public Instruction. (Finance & Commerce)
 

Building Buzz: March 11 - 15

We're reading the headlines so you don't have to.

From how the upcoming solar eclipse on April 8th might interrupt solar power generation to a proposed 48-unit apartment in Burnsville to tree ordinances in Edina, here's what was buzzing in the building world the week of March 11 - 15, 2024:
 

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FLASH FROM THE PAST

A Glassy Office Tower Project is Being Marketed for Downtown Minneapolis
The site of the former Wells Fargo operations center in downtown Minneapolis could look like this, if Sherman Associates has its way. Sherman and JLL have begun marketing the project, called Washington Yards, to prospective tenants so they can eventually break ground on what would be a full city block redevelopment. The project would include two residential towers to complement the office building, which would stand 16-stories and have 400,000-square-feet. (2-5-2024 | Axios Twin Cities)
 

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MARCH 11

April's eclipse could interrupt solar power generation, strain electrical grids
During the most recent total eclipse visible in the U.S., on August 21, 2017, the skies darkened as the Moon crossed in front of the sun. It blocked out all sunlight --- except for that from a golden ring visible around the Moon's shape, called the corona. Not surprisingly, solar power generation across North America plummets for several hours, from the first moment the Moon began to obscure the sun to when the sun's disk was clear again. On April 8, 2024, another total eclipse will track across the U.S., causing perhaps an even greater loss of solar power generation. Although this will be the second total solar eclipse visible in the U.S. in under seven years, these events are a rare occurrence. Nevertheless, they present a unique challenge to power grid operations. (Finance & Commerce)
 

Playwrights' Center will spend $18M on move to St Paul
Playwrights' Center has been in the Deward neighborhood of Minneapolis for about 45 years serving storytellers and audiences. It's soon set to move to St. Paul to usher in a new era for the building at 710 Raymond Avenue, a property with a history of family and horses. The site was most recently home to Viking Industrial Center, a retailer for contractors. It's not a likely match --- and the move is going to cost Playwrights' Center (PWC) about $18-million in public and private funds. (Minneapolis / St Paul Business Journal)
 

Power co-ops receive $87M in USDA loans
The United States Department of Agriculture announced an $87.6-million investment in Greater Minnesota electricity cooperatives, which will go toward line repairs, grid technology updating and connecting further consumers to reliable electricity, according to a press release. The funds are part of the Electric Infrastructure Loan and Guarantee Program, which announced $2.2-billion worth of investment throughout the country. The loan will cover the costs of construction for about four or five years, Runestone Electric Association CEO Al Haman said. Runestone, based in Alexandria, regularly applies for and receives these loans, Haman said, and this year was awarded $25-million. (Finance & Commerce)
 

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MARCH 12

Buried Risks: Protecting Underground Utilities During Construction
A potential disaster is lurking under American streets and soil, and it only takes one misstep for lives to be on the line. Every few minutes, an underground utility line is damaged by excavation activity, putting public safety at risk, disconnecting communities and businesses from vital services, and impacting the economy to the tune of $30-billion annually. (For Construction Pros)
 

More Construction Projects are Being Delayed or Abandoned Entirely
The number of U.S. construction projects that are being abandoned, paused or seeing a delayed bid date was up 1.7% over the last month for the week ending March 2, according to ConstructConnect. Fourteen percent more public projects, which includes infrastructure work, are on hold compared to the same week in 2023, ConstructConnect reports. On the private side, 9% more projects are on hold. Perhaps most alarmingly, the number of abandoned public projects jumped 70% compared to the same week in 2023. (BisNow National)
 

REPORT: Inefficient permitting delays clean energy projects
Slow and inefficient permitting is creating headwinds for the development of new wind, solar and transmission projects in Minnesota and making it harder to achieve clean energy goals. So says a new report from North Star Policy Action, which describes itself as an independent research and communications institute. The report finds that Minnesota has fallen behind Iowa and the Dakotas in clean energy production --- even though those neighboring states don't share Minnesota's aggressive goals for carbon-free energy. (Finance & Commerce)
 

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MARCH 13

DEED seeks applications for broadband grants
The Minnesota Department of Employment and Economic Development is accepting applications for $50-million in broadband development grants. DEED Commissioner Mark Varilek said in a statement that the grants will benefit "thousands of Minnesotans" who don't have broadband service. DEED announced funding for 24 broadband projects in early March. (Finance & Commerce)
 

Minnesota gets $7M from Feds for infrastructure
The funding, announced by the White House, includes $3.6-million for a Hennepin County-led Highway 55 project, $1.8-million for Interstate 35 in Duluth, and $1.6-million for the Sixth Avenue North corridor in Minneapolis. The money is "aimed at reconnecting communities that were cut off by transportation infrastructure decades ago, leaving entire neighborhoods without direct access to opportunity, like schools, jobs, medical offices, and places of worship," according to a White House press release. (Finance & Commerce)
 

Infrastructure Bids Exceed Estimate at The Heights
Nearly $30-million worth of infrastructure work for The Heights --- an ambitious redevelopment of the former Hillcrest Golf Course in St. Paul --- has a higher-than-expected price, as construction bids are about $4-million above the engineer's estimates. The Saint Paul Authority recently opened four contractor bids for the work, including East Bethel-based Designing Earth Contracting's apparent low of $28.85-million. The estimate range was $22-million to $24.5-million, according to Port Authority documents. Also bidding was Forest Lake Contracting ($33.1-million), Meyer Contracting ($33.38-million), and RL Larson Excavation ($35.67-million). (Finance & Commerce)
 

MWF plans 48-unit apartment in Burnsville
The project will be developed by MWF Properties and is located at 180 Pillsbury Avenue South. It will be four stories tall and have a mix of one-, two-, and three-bedroom units. The building, dubbed Pillsbury Ridge Apartments, will also include a "tot lot" or a surface play area for children. The property will include an underground garage with 48 stalls and 20 surface lot stalls. (Finance & Commerce)
 

New Construction Technology Releases: March 2024
As spring construction season begins, staying on top of new tech trends is important to builders looking to maximize output and slash costs. Here are five recent announcements from software makers and other tech providers about new offerings or updates to existing products that are designed to smooth out construction for contractors. These five announcements include Leica Geosystems, digital twin creator Matterport, Cintoo and its new "teleport camera," IDS GeoRadar, and autonomous heavy equipment retrofitter SafeAI. (Construction Dive)
 

Redevelopment of riot-stricken Wells Fargo site in Minneapolis to begin this spring
The project, led by a partnership between Minneapolis-based Project for Pride in Living Inc. and San Francisco's Wells Fargo & Co., is poised to build 110 affordable housing units with 14,400-square-feet of ground-floor commercial space, including a new Wells Fargo bank branch and space for businesses owned by people of color. The site is located at 3030 Nicollet Avenue, just off of West Lake Street. A $61-million plan, the now-leveled Wells Fargo branch was damaged during a riot after the murder of George Floyd and construction is expected to begin this spring. (Minneapolis - St Paul Business Journal)
 

REPORT: Office-to-apartment projects are key to St. Paul downtown revival
A group of St. Paul business leaders say the city must refocus downtown on pedestrian life and step up redevelopment projects --- especially office-to-apartment conversions --- if it wants to revitalize Minnesota's capital city. The recommendations from the St. Paul Downtown Alliance came as part of a 126-page report, titled "Downtown Investment Strategy." (Minneapolis - St Paul Business Journal)
 

Upgrades coming to Hennepin and First Avenues
With help from mild weather, crews will begin pre-construction activities this month, according to the county. Workers will "remove some trees along the sidewalks, and install temporary signal poles to prepare for upgraded pedestrian crossings," the county said. Scheduled for completion this fall, the project will improve Hennepin and First avenues from Main Street to Eighth Street in northeast Minneapolis. The improvements will benefit people who "walk, bike, roll, use transit, ride, and drive," the county said. (Finance & Commerce)
 

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MARCH 14

Developer plans affordable rentals, grocery west of downtown Minneapolis
Real estate investor James Archer of Matrix Development is planning to build an 86-unit affordable apartment building in Northwest Minneapolis, possibly with a grocery store. In a released memo, Minneapolis public documents identified Matrix Development as the "emerging" developer that was given exclusive rights to develop the city-owned vacant property at 2113 Glenwood Avenue. The project is still in the early phases, but the plan is to build 86-units at or below 50% of the area's median income. There will be 14 one-bedroom, 39 two-bedroom, 18 three-bedroom, and 10 four-bedroom units. (Minneapolis - St Paul Business Journal)
 

Edina Planning Commission pushes back on France Avenue Redevelopment Plan
Southdale Office Partners, which owns the 22-acre site at 6600 to 6800 France Avenue South, wants the city to rezone the property from Planned Unit Development to Planned Commercial District to allow for the 107,000-square-foot medical building, along with an 8,000-square-foot restaurant and a parking deck. By a 6-2 vote, Edina's Planning Commission recommended denial of the request amid concerns about bicycle and pedestrian access and tree removal to make way for a parking structure on the site. (Finance & Commerce)
 

Johnson Bros. Pulls Out of Plan for Eagan's Blue Cross Blue Shield Site
The city of Eagan received a notice from the St. Paul-based wine and spirits distributor (Johnson Bros. Liquor Co.) that it was withdrawing its application for redevelopment and a comprehensive guide amendment for the site, which would have been the firm's new corporate headquarters. The company determined the site isn't the best fit for its expected future needs, Johnson Bros. said in a statement provided to the Pioneer Press. It's now exploring other options in the metro, including St. Paul. (Minneapolis-St Paul Business Journal)
 

Legislative Auditor Report Calls for More Coordination to Prevent Worker Misclassification
A new report from the Minnesota Office of the Legislative Auditor finds that the state lacks a "coordinated approach" to preventing employers from misclassifying workers as independent contractors. Worker misclassification, which is prohibited by state law, allows employers to reduce labor costs and gain an unfair competitive advantage in the marketplace, according to the OLA report. Misclassification rates in Minnesota are unknown, the report says. (Finance & Commerce)
 

Mortenson to Build $800M Meta Data Center in Rosemount
Golden Valley-based Mortenson has been tapped to build the 715,000-square-foot project on a 280-acre site at UMore Park in Rosemount, a former WWII gunpowder production site that was later owned by the University of Minnesota. Governor Walz and other state leaders confirmed the mega project, and the announcement comes after months of media reports and speculation about a mystery company's plans to build a large data center at UMore Park. (Finance & Commerce)
 

Storm Washes Away $600K of Sand Meant to Protect Nearby Infrastructure
A Massachusetts beach community is scrambling after a weekend storm washed away $600,000 in sand that was trucked in to protect homes, roads and other infrastructure. The project, which brought 14,000-tons of sand into Salisbury over several weeks, was completed just three days before Sunday's storm clobbered southern New England with strong winds, heavy rainfall and coastal flooding. (Finance & Commerce)
 

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MARCH 15

Michael Foods Buys Gaylord Apartments
When Hopkins-based Michael Foods Inc. had trouble finding and keeping workers at its plant in Gaylord, the problem was that some of those workers couldn't find affordable housing. So Michael paid $2-million to buy the 48-unit Gaylord Villas at 10 Eighth Street. Depot 1881 LLC, an entity of Michael Foods, bought the property from Gaylord Villa LLC, an entity of Babinski Properties in Sioux Falls, South Dakota. (Finance & Commerce)
 

Tree Ordinances in Edina, Minnetonka Raising Ire of Developers, Homebuilders
When homebuilder Rebecca Remick was recently finalizing plans to construct a new house in Edina, she and her client were slapped with an unexpected fee from the city: a $19,000 deposit for permission to tear down a 35-foot tree in the way of the project. Remick, owner of Edina-based City Homes, was "stunned" by that dollar amount, she told the Edina City Council at a meeting last month. The homeowner had just become financially secure enough to make living in Edina a reality, but the newly discovered requirement made the dream of a perfect home more difficult to achieve. (Minneapolis - St Paul Business Journal)
 

Building Buzz: March 4 - 8

We're reading the headlines so you don't have to.

From the Chanhassen Cinema Redevelopment project to a new CEO named at Kraus-Anderson to the approval of the I-94 expansion in Milwaukee, here's what was buzzing in the building world the week of March 4-8, 2024:

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Builder JE Dunn Marks 100 Years
JE Dunn Construction plans a "year-long campaign" to celebrate its 100 years in business and nearly 80 years in Minneapolis, according to a press release from the construction group. JE Dunn is a construction company that is family- and employee-owned, according to the press release. It has 26 offices throughout the nation. It is the eighth-largest domestic general building contractor in the United States. (3-6-2024 | Finance & Commerce)
 

Chanhassen Cinema Redevelopment Project Up for Review
An estimated $125-million redevelopment project would bring hundreds of apartment units and retail uses to the former Chanhassen Cinema site in Chanhassen --- as well as a new artwork dedicated to Minnesota music royalty. Roers Cos., which will go before the City Council for project approvals, wants to redevelop the four-acre site near West 78th Street and Market Boulevard with a 310-unit, market-rate apartment building and 14,000-square-feet of retail space. (3-6-2024 | Finance & Commerce)
 

MnDOT Schedules Meeting About Stone Arch Bridge
The Stone Arch Bridge restoration is the subject of a March 19th virtual public meeting hosted by the Minnesota Department of Transportation. Construction begins this spring. As part of the project, crews will repair the historic bridge over the Mississippi River on the edge of downtown Minneapolis. Repairs and mortar replacement will improve the bridge's condition and stonework. (3-6-2024 | Finance & Commerce)
 

$300M Ryan Cos. Redevelopment of Greensboro Berkshire Hathaway Site is Shelved
Ryan Cos. is no longer pursuing a $300-million redevelopment of the former News & Record site in downtown Greensboro, NC., a spokesperson from the Minneapolis developer confirmed to Triad Business Journal. The mixed-use project the Ryan Co. and TH3 Partners LLC were planning included two, 250,000-square-feet commercial buildings with around 300 to 400 apartment units that would have been built after the current 158,000-square-foot building is demolished. (3-7-2024 | Minneapolis / St Paul Business Journal)
 

A Government Business Reporting Mandate Loses in Court. Here's What Happens Next.
The Corporate Transparency Act, which kicked in January 1st, requires businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners. It's part of a larger effort by the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) to crack down on money laundering and other financial crimes. On March 1st, a U.S. District Court judge in Huntsville, Alabama, ruled the government overstepped and the legislation exceeds the powers granted to its by the Constitution. The National Small Business Association brought the lawsuit alongside small-business owner Isaac Winkles. (3-7-2024 | Minneapolis-St Paul Business Journal)
 

Construction Job Openings Surge 41% Year Over Year
The construction industry counted 413,000 open jobs on the last day of January, a 41% increase year over year, or 120,000 more unfilled positions, according to Bureau of Labor Statistics data released. At the end of January, 4.4% of construction jobs went unfilled, down slightly from 4.7% in December and 5% a year prior. Quits hardly changed from December, and were down 19.6% year over year. Meanwhile the industry counted about 40% more layoffs in January 2024 than in the same month in 2023. (3-7-2024 | Construction Dive)
 

Luxury Apartment Tower 4th & Park in Minneapolis' Downtown East Opens in April
The 350-unit, 25-story high-rise, known as 4th & Park, is gearing up for move-ins starting April 1st. The mixed-use tower is currently pre-leasing for the apartments, owner and property manager Kirkland, Washington-based Weidner Apartment Homes announced. The 265,000-square-foot tower offers studios, one-, and two-bedroom units and three-bedroom penthouses. Units feature quartz countertops, stainless steel appliances, oversized vanity mirrors, walk-in closets and wood-plank flooring. (3-7-2024 | Minneapolis-St Paul Business Journal)
 

New CEO Named at Kraus-Anderson After Engelsma Steps Down
Bruce Engelsma, longtime leader of Kraus-Anderson Cos., is stepping back from this role as CEO, and Chief Operating Officer Peter Diessner is the new top boss at the construction group, according to a press release. Diessner has been the COO of Kraus-Anderson since March 2023 and held various leadership positions at its subsidiaries since May 2018. Before that he was a real estate attorney at Fredrickson & Byron and then Speeter & Johnson. (3-7-2024 | Finance & Commerce)
 

Rise in Project Abandonments Signals Continued Industry Turmoil
The Project Stress Index --- a measure of construction projects with a delayed bid date, or that have been paused or abandoned --- rose 1.7% in the last 30 days, according to a March report from ConstructConnect. Work put on hold increased 11% over the previous 30 days through March 2, said Michael Guckes, senior economist at ConstructConnect. Compared to the same period in 2023, the project stress index remains up 13%, added Guckes, signaling ongoing uncertainty within construction. But public and private sector projects continue to show different patterns. While both face increasing delays and cancellations, public projects, due to their funding mechanisms, remain in a comparatively stronger position to push work forward. (3-7-2024 | Construction Dive)
 

The High Cost of Maintaining Affordable Housing
Michael Howard was a Richfield City Council member when, in 2015, nearly 670 residents were displaced from Crossroads at Penn, a large Richfield apartment complex that was home to low-income residents. A Twin Cities developer had purchased the building, renovated it, and rebranded it as the Concierge, offering market-rate units that the current residents could not afford. Two years later, Seasons Park Apartments, another affordable housing complex in Richfield, was at risk of being turned into market-rate units just as Crossroads was. Instead, Howard and his city council colleagues worked with Aeon, a developer and operator of affordable housing, which ultimately took ownership of the complex and preserved 422-units of affordable housing. (3-7-2024 | Finance & Commerce) 
 

ASHRAE Commercial Building Code Standard Now Requires On-Site Renewables
The U.S. Department of Energy has issued ASHRAE a determination affirming that ANSI / ASHRAE / IES Standard 90.1-2022, which incorporates a renewable energy mandate for the first time, will improve energy efficiency in commercial buildings governed by the code. The DOE's technical analysis estimates that implementing Standard 90.1-2022, the Energy Standard for Sites and Buildings Except Low-Rise Residential Buildings, would provide commercial buildings site energy savings of 9.8%, source energy savings of 9.4%, and carbon emissions reductions of 9.3% on a weighted national average. When factoring renewable energy into these results, those improvements increase to site energy savings of 14%, source energy savings of 14.7%, and carbon emission cuts of 14.7%, the analysis suggests. (3-8-2024 | Smart Cities Dive)
 

I-94 Expansion in Milwaukee Receives Federal Approval
The Wisconsin Department of Transportation announced that the plan received an OK from the Federal Highway Administration. The state DOT will now move on to final design and construction. The project will widen I-94 from six to eight lanes along a 3.5-mile stretch between 16th and 70th streets on the city's west side. Along with adding lanes, the project includes road modifications that will eliminate left-hand exit and entrance ramps and "right-sizing" the Stadium Interchange. (3-8-2024 | Wisconsin Public Radio)
 

Lead from old paint and pipes remain deadly hazard in millions of U.S. homes
Widely used in products such as paint and gasoline until the late 1970s, lead continues to contaminate environments and harm the health of people around the world. The World Health Organization estimates that more than 1-million deaths each year are attributable to lead poisoning, with the highest exposures in developing nations. Lead continues leaching from old paint, pipes and industrial sources into soils, homes and waterways across the globe. (3-8-2024 | Finance & Commerce)
 

Overhaul of Middleton's zoning code includes bird-safe glass requirements
According to the new ordinance, buildings 10,000-square-feet or larger, facades 60-feet from the ground and sky bridges must be treated with a pattern of quarter-inch dots to prevent birds from colliding into buildings mid-flight. The new comprehensive plan also calls for promotion of biodiversity; officials said creating a rule to deter bird collisions is a step toward its ecological goal. (3-8-2024 | Finance & Commerce)
 

Women in Construction Date Report Released
Only 10% of women comprise the construction workforce, with 4% working onsite. While 67% of the women surveyed reported that they integrated into the industry somewhat smoothly and 72% revealed there were plenty of opportunities for them to advance, 67% of the women raised concerns about the lack of gender-friendly and maternity-friendly safety equipment. This poses a major problem when keeping women feeling safe and wanting to continue working in the industry. (3-9-2024 | For Construction Pros)