Building Buzz: December 2 - 6
This week’s Building Buzz showcases a construction industry bustling with activity and optimism.
From decarbonizing designs to meet sustainability goals, as discussed at the AIA Minnesota conference, to ambitious redevelopment projects like Eagan’s transformation of a former middle school into a vibrant residential hub, the region is paving the way for innovation. Meanwhile, bold plans like Life Time’s luxury housing and fitness project in Maple Grove highlight a growing trend of integrated, high-end developments. With the Minneapolis Fed’s survey revealing a brighter outlook for 2025, fueled by moderated inflation and decreasing interest rates, the industry is poised for an exciting year ahead.
Dive into the full articles to explore how these projects and trends are reshaping the local and national construction landscapes.
DECEMBER 2
Sustainable: A blueprint for cutting carbon in construction
Every material in the construction process involves carbon in its creation. Building anything generates carbon emissions, from trucks driving materials to a site to the power consumed to create those materials. Yet architects have been working on approaches using a mix of tools that help find suppliers and monitor outcomes, making decarbonization more achievable. In November, the Minnesota chapter of the American Institute of Architects' annual conference featured a session on best practices for decarbonization projects. Speakers broke down their approach and the challenges they had to overcome to get near-net zero projects. (Finance & Commerce)
DECEMBER 3
Eagan school site redevelopment would bring apartments, townhomes
Pulte Homes, Enclave and Lifestyle Communities have a development plan for the former Metcalf Middle School site at 2250 Diffley Road that would bring an apartment building with 245-units, another multi-family complex that would serve as a 66-unit senior cooperative, 97 townhomes and 42 twin homes. Metcalf Park, as the development has been dubbed, was put forward for a rezoning and preliminary planned development vote at the November 26th meeting of the Eagan Advisory Planning Commission, which voted 7-0 to recommend approval. (Finance & Commerce)
Enclave to develop stalled 50th & France luxury apartment project
Enclave Cos. confirmed it is partnering with the former developer of the project tied to Eden Prairie-based Quadriga Ventures, to soon start building a 5-story, mixed-used development at 4901 France Avenue South. The site is located on the north end of the 50th & France district that straddles the Edina-Minneapolis border. Enclave said it's planning 47 luxury apartment units and about 7,500-square-feet of first-floor retail space, which differs only slightly from what was previously approved by the city in early 2022. At the time, the project was approved despite objections from more than 100 neighbors. (Minneapolis - St. Paul Business Journal)
Kenosha gives early approval for data center site
The Kenosha City Plan Commission approved the city annexing land at the northeast corner of 136th Avenue and Burlington Road from the town of Paris, Wisconsin Public Radio reported. The site is northwest of the intersection between Interstate 94 and Wisconsin Highway 142, where Uline and Amazon warehouses stand. The owners want to rezone the land to a heavy manufacturing district and build four 250,000-square-foot data center buildings and a utility substation, a city agenda showed. They must get final approval from the Kenosha Common Council before construction starts. Crews will connect the site to Kenosha water and sewer utilities and pave several access drives in the first phase of construction. The next phase will involve construction of data center buildings. The project is expected to take multiple years. (Finance & Commerce)
Madison dedicates nearly $10M to affordable housing
The city of Madison Community Development Division on November 26th approved using $9.85-million from the city affordable housing fund to fill financial gaps for four developers who are looking to build affordable housing. The developers were selected through a request for proposals process and will build a combined total of 267-units, of which 167 will be affordable. The Common Council also approved a $10-million commitment to support the first phase of the Triangle redevelopment project to replace public housing near the city's west side. (Finance & Commerce)
Minneapolis Fed: Construction outlook is 'optimistic'
With inflation moderating and interest rates trending down, local construction companies have a rosier outlook for the coming year than they did at this time in 2023 and 2022, according to a new survey from the Federal Reserve Bank of Minneapolis. The survey reveals that businesses have lingering concerns about labor availability, material costs, interest rates and more, but the mood is clearly better compared to a year ago. (Finance & Commerce)
Pentair acquires G&F Manufacturing for $108M
Pentair, a water-treatment company legally based in London with headquarters in Golden Valley, Minnesota, said it would purchase North Fort Myers, Florida-based G&F Manufacturing Inc. for $108-million in cash. G&F produces GulfStream Heat Pumps, a brand that specializes in high-efficiency, sustainable heat pumps. GulfStream has four distribution centers and a 25,000-square-foot manufacturing facility in Florida. Pentair offers several products in the pool sector including heat pumps, lighting, pool maintenance and parts. With this acquisition, Pentair will expand its pool equipment offerings to include the GulfStream brand. (Minneapolis - St. Paul Business Journal)
DECEMBER 4
Milwaukee developers pitch 300-unit apartment in Wauwatosa
Cobalt Partners and John Vassallo submitted plans for the "Tosa Lofts," a five-story, 357-unit apartment building at 11811 West Bluemound Road, a city agenda showed. The Wauwatosa Design Review Board will review the plans, and the site is currently home to the Wisconsin International Academy. The developers plan to demolish the school building in the first quarter of 2025. They will start construction in the second quarter of 2025 and construction will carry on for 20 months. Amenities include a covered patio, spin rooms, golf simulators, outdoor yoga area, outdoor terrace, a pool with cabanas, a courtyard pavilion and a club room. The club room and pavilion will have green roofs, plans showed. (Finance & Commerce)
Multi-family housing starts down again in November
During the month, cities in the 13-county metro area permitted 856 new housing units overall, down 13% from November 2023, according to the Keystone Report. That includes 660 single-family homes, up 15% and 196 multi-family units, down 52%. On the multi-family side, the biggest project permitted in November was a 172-unit affordable apartment building in Burnsville. Overall, multi-family construction took another step back in November after a brief sign of life in October, when planned multi-family units increased for the first time in nearly a year. (Finance & Commerce)
PPL promotes Karla Henderson to president, CEO
Minneapolis-based affordable housing provider Project for Pride in Living (PPL) has appointed Karla Henderson as the organization's preident and chief of executive officer. Henderson, who starts her new job duties on January 6th, joined PPL as senior vice president of housing stability in March 2024. She oversees housing operations, including real estate development, resident services, and property and asset management. (Finance & Commerce)
DECEMBER 5
Life Time pitches luxury housing-fitness mix in Maple Grove
Chanhassen-based Life Time is seeking city approvals for the proposed development, which includes a 90,000- to 120,000-square-foot high-end health and wellness facility and 200-385 luxury apartments within the 100-acre Minnesota Health Village development site near Interstate 94 and Highway 610. The fitness building and apartments would rise on 17.5-acres at the northeast corner of the Minnesota Health Village site. Ryan Cos. US Inc. is the master developer of Minnesota Health Village. Life Time still has some hurdles to clear in city entitlement process, but it's off to a good start. The Maple City Council swiftly approved a planned unit development concept stage plan, and preliminary and final plat. (Finance & Commerce)
DECEMBER 6
Dodge Momentum Index slides 2% in November
The Dodge Momentum Index (DMI) decreased 2.3% in November to 191.5 from the revised October ready of 196.0. Over the month, commercial planning fell 4.6% while institutional planning improved 2.5%. On the commercial side, slower data center, office, warehouse and retail planning drove much of the month's decline, while strong growth in education planning informed much of the growth on the institutional side. The institutional portion of the DMI has grown 5 of the last 6 months. (Dodge Construction Network)
Eagan OKs 104-unit townhome development
Lennar Corp. pitched a development on the northwest section of the Thomson Reuters' Eagan Campus redevelopment site, east of the intersection of Yankee Doodle Road and Elrene Road. The move by the City Council to approve the preliminary subdivision comes on the heels of the body giving Ryan Cos. the OK for the comprehensive guide plan amendment and other approvals for the property at its November 19th meeting. The 104 townhomes will sit on 22-acres and is part of Lennar's "coordinated effort" with Ryan, according to planning notes. It will feature four to six units per building, with 24 buildings overall. (Finance & Commerce)
Lilly invest $3B to expand Wisconsin plant as obesity drug demand soars
Eli Lilly said it will invest $3-billion to expand the manufacturing plant it bought in Pleasant Prairie, Wisc., earlier this year, as it scrambles to meet soaring demand for its weight-loss and diabetes drugs. The acquisition, expansion, and additional purchases of land and the adjacent warehouse in Wisconsin bring Lilly's total planned investment in the site to $4-billion, it said. (Reuters)
Mortenson's incoming CEO Derek Cunz optimistic about 2025
"There's a little bit of a wait and see to see how many more interest-rate cuts happen. It's a little but of, how much better will it get before you close on deals? It's going to take a little time for the markets to totally loosen up. People are thinking about deals, and we're optimistic about the future with rate cuts on the macro side. The electrification of the global economy, the on-shoring of manufacturing and the data center business are place that we're well-positioned and have had longtime businesses focused on it." (Minneapolis - St. Paul Business Journal)
Supreme Court could limit scope of federal environmental reviews
On December 10th, the Supreme Court heard oral argument in Seven County Infrastructure Coalition v. Eagle County, Colorado, the first major National Environmental Policy Act (NEPA) dispute before the court in 20 years. The Supreme Court's ruling could significantly affect how NEPA applies going forward, especially with the respect to climate change. Under NEPA, federal agencies considering major actions must prepare an environmental impact statement --- a detailed analysis of the "reasonably forseeable environmental effects" of the proposed activity. (Finance & Commerce)