Building Buzz: Growth, Grants and Groundbreakings from Eagan to Rochester
Welcome to the latest edition of Building Buzz, where we bring you the freshest updates shaking up Minnesota's commercial construction scene.
This month, we're tracking a surge of projects that span everything from major housing developments and retail revitalizations to industrial expansions and cultural milestones. Eagan and Rochester are especially hot, with housing units, hotel plans, and even a potential Ecolab expansion making waves. Minneapolis is seeing impactful mixed-use projects rise from past challenges, while transit funding is fueling new affordable housing across Hennepin County. Meanwhile, big names like Amazon and Home Depot are navigating shifting economic landscapes with bold moves and steady strategies.
From legislative departments in St. Paul to a groundbreaking new arts center in Milwaukee, there's a lot to unpack --- so let's dive in.
MAY 9
Eagan Approves 450-Unit Metcalf Redevelopment
Community & Assisted Living | Multi-Family
A redevelopment of the former Metcalf Middle School site has received the final stamp of approval from the Eagan City Council. The project was approved unanimously by the council at their May 6th meeting. The redevelopment will bring 450-units of housing spread across an apartment building, a senior cooperative, townhomes, and twin homes. Located at 2250 Diffley Road, the redevelopment is dubbed Metcalf Park. It received the green light in late March from the Metropolitan Council, which sent it back to Eagan for final approval. Pulte Homes is the master developer of the site, having first brought a proposal for the site to the city of Eagan in Summer 2023. At that point, Pulte was set to build the 97 townhomes and 42 twin homes; Lifestyle Communities was set to build the 66-unit senior housing cooperative; and Enclave was set to build the 245-unit apartment. Since then, Enclave has left the project. (Finance & Commerce)
MAY 14
Plymouth Plaza Site Eyed for Retail, Workforce Housing
Commercial & Retail | Multi-Family | Parking Structure
Marco McClane Development and Mithun Cos. want to redevelop the Plymouth Plaza site in Plymouth with new uses that include retail and a 200-unit apartment building, a project that promises to enhance the city's "missing middle" housing stock. The Plymouth City Council reviewed a "sketch plan" for the project on May 13th. Though the council didn't take formal action, council members generally liked the idea of bringing more workforce homes to an existing underused site. The council raised concerns about traffic impacts and the height of the new building. The developers said they plan to address these issues and hope to start construction by late fall. A site plan submitted to the city shows a four-story, 200-unit apartment building on the western side of the development site, along with two retail buildings --- a 14,000-square-foot building and a 1,400-square-foot structure --- on the north. The project would require changes to the city's comprehensive plan, would retain 21,750-square-feet of space in the existing commercial building. The site also shows 303 garage and surface parking spaces for the apartments and 158 surface parking spaces for commercial uses. (Finance & Commerce)
MAY 15
Construction, Design Leaders Call for Action on 2025 Bonding Bill
Minnesota Legislature 2025
After failing to pass a bonding bill in 2024, legislative leaders in both the House and the Senate have expressed "strong interest in completing a bonding bill this session, and both chambers have approved vehicles for bills to move forward," according to the Minnesota chapter of the American Instituted of Architects (AIA Minnesota), a member of the pro-bonding Building Jobs Coalition. With only days left in the 2025 regular legislative session, which is scheduled to adjourn Monday, May 19th, lawmakers have yet to move forward on a bill to pay for public works projects. Bonding could be taken up in potential special session, however. Meanwhile, numerous projects are queued up for bonding. The needs are piling up at a time when the construction economy is facing headwinds, including tariff-induced price uncertainties' for steel and aluminum. (Finance & Commerce)
MAY 16
$5M Project Aims to Boost Lake Street Revival with Housing and Retail Spaces
Commercial & Retail | Mixed-Use | Multi-Family
A Rochester-based developer plans to transform a site damaged during the 2020 civil unrest following George Floyd's murder with a $5-million mixed-use development along East Lake Street in Minneapolis. The four-story development would include 16 market-rate housing units and two ground-floor retail spaces at 2815 Lake Street East, according to Kenneth Bush, CEO and owner of Bush Cos. The plan revives a previous 8-unit iteration of the redevelopment sought by another developer in 2021. Bush Cos. has been working on its version of the project since Spring 2024. It has received funding, including from Hennepin County and the Graves Foundation through Lake Street Lift, an initiative in partnership with the Lake Street Council aimed at funding initiatives and organizations that seek to improve Lake Street. The project, called Lola Lofts, is to provide for the "missing middle" of housing, a term that refers to housing that falls between a single-family home and a larger scale apartment building. The two retail spaces, together spanning 2,370-square-feet, are intended to house emerging local businesses. Pending city approvals, the project aims to begin site preparation by this winter. The goal is to be open by August of next year. College Architects is designing the project, while Yellow Tree Development is the general contractor. Platform CRE is a consultant on the project. (Minneapolis / St. Paul Business Journal)
Affordable Housing Funded by Hennepin Transit Grants
Affordable Housing | Commercial & Retail | Mixed-Use
A project that will bring more than 30 new deeply affordable homes to Brooklyn Center is among the recipients of newly awarded "transit-oriented community" grants from Hennepin County. The County Board awarded $2-million in all for six projects --- four in Minneapolis, one each in Hopkins and Brooklyn Center. The funding comes from the county's Transit Oriented Communities program, which advances walkable, mixed-use communities that "leverage high-quality transit service." Leveraging $80-million in total investment value, the funding will support 110 new or retained jobs and create 149 new housing units overall, along with 48,800-square-feet of commercial space, according to Hennepin County. Included in the funding is $400,000 for VY Enterprise LLC's Community Corner, a mixed-use affordable housing development in Brooklyn Center. Offering 31 units of housing for residents at or below 30% of area median income, the $18.1-million project also includes three affordable commercial spaces. (Finance & Commerce)
Amazon to Build New Distribution Center South of Rochester
Facility | Industrial
Amazon has completed the purchase of a 23-acre site just south of Rochester where the online retailer plans to build a "last-mile" distribution facility in Stewartville's Schumann Business Park. Plans call for Amazon to build a nearly 84,000-square-foot facility on the site, which was annexed by the city earlier this year. The Stewartville City Council approved a development plan for the site in February. Amazon did not immediately did not respond to questions about how it plans to invest in the Stewartville facility, code-named "Project Tiger." (Minnesota Star Tribune)
Merchants Capital Provides $32.9M in Financing for 60-Unit Multi-Family Development in St. Paul
Affordable Housing | Athletic Facility | Multi-Family | Playground
East 7th Street includes 17-units designated for individuals earning 30% of area median income (AMI) and 43-units designated for individuals earning up to 60% of AMI. Seven units will be set aside for people with disabilities and seven units will be reserved for high-priority homeless housing via Ramsey County Housing Support Program and Coordinated Entry System. Developed by Project for Pride in Living (PPL), the East 7th Street affordable housing development was designed to accommodate "grandfamilies" with large family-kindship. East 7th Street will offer one- to five-bedroom apartments with washer / dryer, LVT flooring and stainless-steel appliances. Community amenities include a fitness center and wellness room, package lockers, on-site management and maintenance, bike storage, storage units, playground, lounge area, conference room, and an elevator. (RE Journals)
MAY 19
Ecolab Weighs Expansion at 90-Acre Campus in Eagan
Facility | Industrial
Ecolab proposes to renovate and expand its footprint at its 90-acre campus in Eagan. The St. Paul-based chemical and water treatment company plans to seek funding for the project through the Minnesota Department of Employment and Economic Development's Minnesota Forward Fund, according to documents filed with the city of Eagan. While details are slim, the company does have room to grow there. As part of the expansion proposal, Ecolab would renovate the existing facilities on the Allan L. Schuman Campus, which is located at 655 Lone Oak Drive, just south of Viking Lakes development that's home to the Minnesota Vikings' headquarters. The company also plans to expand its research and development facilities, build a new customer experie3nce center, and purchase equipment for the campus, city documents show. The company may submit an application for land-use approvals in the coming months, according to the city documents. Construction would begin in late 2025. (Minneapolis / St. Paul Business Journal)
Empire Hotels Plans Hotels, Apartments at Ex-Post Builletin Site in Downtown Rochester
Commercial & Retail | Hotel | Multi-Family | Parking Structure | Recreation & Entertainment | Restaurant
Empire Hotels seeks to redevelop the vacant site, located at 18 First Avenue Southeast across from the Mayo Civic Center, with a total of 290-rooms and a seven-story, 190-unit residential complex. The plans were first reported by the Post Bulletin. The developer also plans to build a 260-stall parking ramp and nearly 11,000-square-feet of commercial space. The commercial space could include uses like retail, a food hall or entertainment, according to documents submitted to the city in March. One of the hotels, which includes 155-rooms, is anticipated to be an AC Hotels by Marriott, submitted plans show. The 135-room hotel branding is still to be determined. The residential mix would include micro apartments, spanning 380-square-feet each; studio apartments, at 500-square-feet each; and one-, two-, and three-bedroom units. Minneapolis-based ESG Architecture & Design is working on the project. Empire Hotels hopes to start work on the Post Bulletin site project in early 2026. (Minneapolis / St. Paul Business Journal)
MAY 20
$92M Affordable Housing Project to Break Ground in Woodbury
Affordable Housing | Lighting | Multi-Family | Street & Sidewalk Improvements | Trails
A long-planned $92-million affordable housing project is on the cusp of construction in Woodbury. The project, developed by Broadway Street Development, will bring 237 new apartments to a site at 580 Manning Avenue South, which is near a new Amazon light industrial facility and the city of Woodbury's Prairie Ridge Park. The units will be affordable for households at 50% - 70% of the area's medium income, according to Broadway Street Development, which announced the project's closing late on May 19th. The imminent start of the construction comes more than a year after the project was approved. Scheduled for occupancy in Spring 2027, the four-story building will house one-, two-, and three-bedroom apartments. Apartments will feature nine-foot ceilings, quartz countertops, LED lighting, Energy Star-rated appliances, a side-by-side washer and dryer, a balcony, walk-in closets in the primary bedrooms, a reservable conference room, and a pet spa and dog park, among other amenities. The development also includes "public improvements such as public road connection to the site, expansion of public trails and construction of turn lanes for the project on Manning Avenue," the developers said. (Finance & Commerce)
After 10 Years and Millions in State Dollars, Has Rochester's Destination Medical Center Plan Lived up to the Promise?
Project Update - Rochester, Minn.
A coffee talk on the East Coast almost two decades ago forever changed Rochester. Two local businessmen asked questions that helped launch the city's unprecedented economic development project --- Destination Medical Center, the $585-million initiative to turn Rochester into an international medical hub over a 20-year period. Halfway through its lifecycle, DMC --- paid for with city, county and state funding --- is on track to meet its objective to bring $5.6-billion in private investment downtown. DMC remain the largest project ever carried through the Legislature. It wasn't well received at first, in part because lawmakers wanted more financial commitment from the city and Olmsted County, which eventually added $128-miilion and $46.6-million respectively to the state's $410.6-million. It officially launched in 2015 with funding secured through 2035. (Minnesota Star Tribune)
Downtown Rochester to see 340-Unit Development as Reuter Walton Advances Citywalk Project
Athletic Facility | EV Infrastructure | Multi-Family | Parking Structure
Reuter Walton plans to begin construction on a $150-million residential project in downtown Rochester this year after landing key city approvals on May 19th. The city of Rochester's Economic Development Authority gave the St. Louis Park-based developer the green light on a tax increment financing plan to help support the development of a new 13-story, 340-unit residential building, known as Citywalk. The project has gone through previous iterations led by a previous developer, dating back to at least 2022. Reuter Walton got involved in the project in later 2024. One-fourth of the 340-units in the new development will be set aside for short-term housing for those visiting the Mayo Clinic. Building amenities include structured parking, a fitness space, conference room, community room, outdoor pools and spa deck, work-from-home space, electric-vehicle charging stations, outdoor green space and seating, and a package delivery system, according to city documents. Units will have quartz countertops, tile backsplashes, stainless steel appliances, in-unit washers and dryers, roller shades, carpeted bedrooms, and more. Construction on the development is expected to begin by the end of this year and be completed by the end of 2027. (Minneapolis / St. Paul Business Journal)
Home Depot Holds Prices Steady Despite Tariff Pressure
Economic Outlook | Industry News
Home Depot doesn't expect to raise prices because of tariffs, saying it has spent years diversifying the sources for the goods on its shelves. Billy Bastek, executive vice president of merchandising, said during a conference call said that Home Depot's suppliers have shifted sourcing across several countries and that the company doesn't expect any single country outside of the U.S. will represent more than 10% of its purchases 12-months from now. During the first quarter, Home Depot's revenue climbed as customers spent slightly more on smaller home projects. (Finance & Commerce)
Reuter Walton to Build 340 Apartments Near Mayo Clinic
Athletic Facility | EV Infrastructure | Multi-Family | Parking Structure
The Rochester Economic Development Authority approved an economic development plan and authorized a tax increment financing (TIF) district for the roughly $150-million residential development project, which clears the way for construction of the new 13-story, 340-unit Citywalk apartment building at the southwest corner of Second Street Southwest and Sixth Avenue Southwest. The site is across the street from Mayo Clinic's $5-billion campus expansion, according to the development team, which notes that the project will deliver "quality housing for the Mayo Clinic's employees as well as short-term rental housing for patients and guests." Scheduled for completed on December 31, 2027, the project will boast amenities such as structured parking, a fitness room, conference room, community room, club room, outdoor pools and spa deck, work-from-home space, package delivery system, EV charging stations, outdoor green space and seating. As part of the development, the current property owner has agreed to place the two adjacent apartment buildings into Olmsted County's 4D affordable housing program. (Finance & Commerce)
MAY 21
Demolition of Milwaukee DNR Building Paves Way for $55M Arts Center
Demolition | Recreation & Entertainment
A former state agency building will be demolished in Milwaukee, a sign that a long-planned African American arts and culture center project will move forward. The Bronzeville Center for the Arts announced plans to demolish the former Wisconsin Department of Natural Resources office on the northeast corner of North Martin Luther King Jr. Drive and West North Avenue. BCA wants to build a $55-million, 50,000-square-foot museum and events space in the footprint of the old DNR building. Demolition is expected to start in June through December, and the site will be used for a green space. When demolition is completed, there will be an interim period before the new building BCA will undergo, including turning the lot into an activated space for the surrounding community. The group will bring on a landscape architect and gather community input for uses of the green space, including bringing in artists in the planning process. (Finance & Commerce)
Graco Leaving Minneapolis, Opening Riverfront Site for Potential Development
Commercial Development
Graco is closing its Northeast Minneapolis campus and moving hundreds of employees to the northwest metro, setting the stage for one of the Twin Cities' best redevelopment opportunities in years. This is 40-acres of prime Mississippi Riverfront land in what was already a hot area for development. But the decision also underscores an ongoing transition for the city as it moves away from manufacturing. Graco announced on May 21st that it will exist the campus over the next two years and build a new headquarters in either Rogers or Dayton. It remains to be seen how much cleanup is needed to prepare the site for sale and how much interest there is in the land from developers. (Axios Twin Cities)
Milwaukee Office Building Could Undergo Apartment Conversion
Multi-Family | Office-to-Home Renovations
Time Equities Inc. owns 310 West Wisconsin, also called 310W, the multi-tenant downtown Milwaukee office building that could be turned into housing. The Kubala Washatko Architects submitted a request for a commercial alteration permit to add 222 apartments to the 14-story building. Further project details haven't been shared. The conversion of 310W is part of a larger trend of office-to-home renovations planned in the city's business center. Such examples are 100 East office building and J. Jeffers & Co.'s planned renovation of the Mitchell Building. (Finance & Commerce)
Theodore Roosevelt's $400M Mass Timber Library Rises in North Dakota
Project Update - North Dakota
Mercer Mass Timber has completed the first phase of construction on the Theodore Roosevelt Presidential Library in Medora, North Dakota, according to a May 20th press release. The project's construction costs total $400-million, per a funding breakdown by the library. Phase one of construction on the 93,000-square-foot structure began last year, and is centered on the museum building and its roof, according to the news release. JE Dunn is the general contractor on the project, according to Mercer Mass Timber's project page. The roof is designed to echo the rolling topography of the North Dakota Badlands, and requires precisely engineered connections and joints supported by steel wrapped in wood to maintain a seamless timber look. The final mass timber delivery date will be on June 1st, which coincides with the stat date of the second phase of construction. (Construction Dive)
MAY 22
Brookfield Shopping Development Plans Retail, Housing Expansion
Commercial & Retail | Mixed Use | Multi-Family
The Corners of Brookfield announced that it will overhaul its Market Street, located on the east side of the town center, which includes a new slate of retailers and enhancements to public spaces. The 40,000-square-foot project is expected to start in June. Alongside the Market Street makeover, the Corners shared that its effort to create the West End mixed-use development is moving forward. Construction of the West End expansion, which includes retail and housing space, is expected to start in the first half of 2026, officials noted. Milwaukee-area construction, development, and architecture firms will represent IM Properties in both Market Street and West End projects. IM Properties is the master developer and owner of the Corners of Brookfield. The project team includes Mandel Group, who is advising the Corners on development of the West End; RINKA+ was appointed project architect for the West End and Market Street effort; Pepper Construction was hired as general contract on the Market Street initiative; and Hunzinger Construction will remain the landlord contractor delivering new space for retail tenants. (Finance & Commerce)
Mankato Logistics Firm Buys Large Distribution Center From True Value for New HQ, Operations Base
Facility | Industrial | Storage
Logistics company Volk Transfer Co. has acquired a 300,000-square-foot distribution center to become its new corporate headquarters and operations base. The facility, purchased from hardware retailer True Value, is situated on 60-acres of land off Highway 14, according to an announcement released by Volk. The building will undergo a full office renovation, as well as updates to the exterior and dock doors. The large space will give the company more options for storage, safe food certification and RFID scanning technology, ultimately allowing Volk to expand its operation capacity across the country. Volk Transfer currently resides in a 50,000-square-foot space at 2205 Seventh Avenue in Mankato where it has operated since 2011. Volk will maintain ownership of that space. (Minneapolis / St Paul Business Journal)
PSC Approves Natural Gas Power Plants Planned in Oak Creek and Kenosha County
Facility | Industrial | Power Plant
The Public Service Commission of Wisconsin approved We Energies' $1.5-billion plan to build a new natural gas power plan in Oak Creek and a reciprocating internal combustion engine (RICE) natural gas power plant in the Kenosha County town of Paris. The facilities are expected to generate more than 1,200-megawatts of combined energy. Both projects are planned to accommodate a surge in data center development in the area and We Energies' efforts to transition to carbon neutral energy production by 2050. We Energies' new natural gas power plant planned for Oak Creek will be built at the Oak Creek Generating Site west of the existing coal-powered Oak Creek Power Plant and Elm Road Generating Station. The plant will generate and will cost about $1.2-billion. (BizTime - Milwaukee Business News)
