MBEX Has the Scoop

Building Buzz: September 23-27

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

From the Lakeville Lennar development clearing zoning hurdles to a Kentucky District judge partially blocking DOT's DBE program and a Wisconsin co-op pushing community solar panels to a $3.2-billion natural gas conversion plant project okayed in North Dakota, here's what was buzzing in the building world the week of September 23-27, 2024:
 

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SEPTEMBER 23

GN takes over Shutterfly's Shakopee facility, plans renovation
GN, a European company best known for its production of hearing aids announced that it would be moving its North American headquarters from its current Bloomington site to the Shakopee facility that was formerly a Shutterfly production facility. GN will lease 218,437-square-feet, about a quarter of which will be office space, while the remaining space is dedicated to warehouse and production space. The other renovations on the property will include creating an "in-house bistro," an exercise room and gaming room for employees. The transition to the new office will start in spring 2025 and its anticipated to end in fall 2025. (Finance & Commerce)
 

Lakeville Lennar development clears zoning hurdle
The Lakeville Planning Commission voted unanimously for a comprehensive guide plan amendment to allow 88 single-family units and 144 attached townhome units on property at the northeast intersection of 200th Street and Cedar Avenue. The development is being pitched by developer Lennar as Cedar Hills North. (Finance & Commerce)
 

MSP airport finishes runway reconstruction, 2025 runway closures ahead
The $24-million renovation project that began in June finished up over the weekend. The 3-month project, for routine maintenance and safety on the airport's main runways, closed off two of them, limiting the airport's available landing and take-off space. Next year, the airport will close the south parallel runway for reconstruction. Runway 12R-30L will be closed for two periods in 2025 --- April to May and September to October. (Minneapolis - St. Paul Business Journal)
 

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SEPTEMBER 24

Architecture firms Baker Associates acquires Foundation Architects
Baker Associates, an architecture firm that specializes in automotive dealerships, has acquired Foundation Architects, a firm that designs dental and eye care clinics, according to an announcement issues September 20th. The merger of the two Minneapolis-based firms will enable strategic growth for Baker Associates as it broadens its offerings across architectural and interior design services. (Minneapolis - St. Paul Business Journal)
 

Judge partially blocks DOT's DBE program
A federal judge has blocked a key component of the U.S. DOT's Disadvantaged Business Enterprise program in a move that could have widespread implications for workforce participation goals in federal contracts. U.S. District Court Judge Gregory Van Tatenhove granted a limited preliminary injunction against the DOT's DBE program, which sets goals that at least 10% of dollars in federal contracts be warded to women- and minority-owned firms, which are presumed to be disadvantaged under the program. Two road contractors asserted in a lawsuit filed last year that they had suffered reverse discrimination because their firms didn't fall into those categories. Van Totenhove agreed. The preliminary injunction could impact billions of dollars in federal funding. (Construction Dive)
 

Minneapolis eases rules on office-to-apartment conversion projects
The package of measures is meant to streamline or eliminate bureaucratic steps required to approve residential conversion projects --- something Minneapolis is looking to encourage as downtown tries to recover from the effects of the COVID-19 pandemic and the shift to hybrid work. Specifics of the ordinance include: (1) Removing the need for Planning Commission approval and for public hearings on the conversions, which stakeholders say could speed up the process by one to two months; (2) Pausing a 2019 affordable-housing requirement for new residential developments for five years. (The requirement will still apply if a proposed conversion seeks to use public financial assistance such as tax increment financing.); and (3) Dropping the requirement for traffic studies on proposed developments of more than 250-units. (Minneapolis - St. Paul Business Journal)
 

Rochester development could create 900 units
A combined 301 units of single-family homes and townhomes are being pitched at the Rochester Planning Commission's meeting, and the plan leaves room open for quite a bit of expansion. The Prairie Ridge development would contain 250 townhome units along with 51 single-family homes and will have three parcels designated for a future multi-family development intended to hold 600 apartment units, according to Rochester planning documents. City staff have recommended the development for approval, according to documents, with hopes that it will further address the city's shortage of affordable, for-sale housing. (Finance & Commerce)
 

Twin Cities multi-family saw investment jump ion Q2
Led by the $74.3-million sale of Nordhaus and the $53-million sale of the 4Marq apartments, the second quarter of 2024 saw a sharp increase in multi-family sales compared with the first quarter and this time last year, according to a new report by Northmarq. Northmarq's report on the 2024 Q2 multi-family market showed that transaction levels increased two-fold compared with 2023 Q2, and that activity was up 67% from the first quarter of 2024. (Finance & Commerce)
 

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SEPTEMBER 25

Architect: Lino Lakes project on hold for 'nefarious' reasons
The designer of the proposed Madinah Lakes development in Lino Lakes is standing with the project's developers, who allege in a new lawsuit that religious discrimination motivated city leaders to oppose the project. Madinah Lakes, which would bring a mosque and hundreds of new housing units to the city, has been in limbo since June, when the City Council approved a moratorium on new housing within a 980-acre area that includes the project site. The project is "in perfect alignment with the city's comprehensive plan, which calls for mixed residential and commercial development of this property," according to the 88-page complaint filed in U.S. District Court. (Finance & Commerce)
 

EAW released for MN Department of Veterans Affairs campus in Hastings
A planned $221-million overhaul of the Minnesota Department of Veterans Affairs' campus in Hastings is up for environmental review. An Environmental Assessment Worksheet released reveals that the project includes construction of a new facility with 145 resident rooms and support spaces, and demolition of five existing buildings. As part of the project, crews would decommission a water tower and renovate a power plant known as Building 30, according to the EAW. If funding allows, the project could also include geothermal and solar energy systems. Construction is expected to last 30-months, but the start date is "dependent on project funding," according to the EAW. (Finance & Commerce)
 

Minneapolis panel OKs supportive care facility permit
Two weeks after the Business, Housing and Zoning Committee tabled a motion around a 24-bed, temporary supportive care facility in Uptown, the committee approved the interim use permit. Some conditions for approval have been adjusted following the applicants meeting with neighboring businesses, including a commitment to a 1 to 8 ratio for both security and nursing staff and the appointment of a community liaison officer. (Finance & Commerce)
 

Wisconsin co-op pushes community solar projects
Madison-based SolarShare Wisconsin Cooperative won a $200,000 prize from the U.S. Department of Energy's Energizing Rural Communities Prize. This was the second and final round for organizations to claim the prize, which is funded by the Bipartisan Infrastructure Law. SolarShare was picked out of 33 organizations and won $100,000 in the first phase last year. The cooperative works with solar contractors across the state who specialize in community scale solar projects. The contractors find solar projects that need funding and SolarShare assists with capital. The prize money from the second phase will be primarily used for capacity building and hiring staff. The cooperative also has a project for an agrivoltaics curriculum for K-12 students. (Finance & Commerce)
 

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SEPTEMBER 26

Former South Minneapolis Wells Fargo campus applies for historic designation
Wells Fargo has applied for national historic designation for its South Minneapolis Home Mortgage campus, which is being mothballed as the bank consolidates its Twin Cities corporate office footprint. If approved by state officials, the designation would make the property more attractive to developers because it would qualify for significant state and federal tax credits. While it could be re-used as an office campus, the demand for housing is much greater. The state matches a 20% federal tax credit on projects that preserve and renovate old buildings. While the cost of converting the campus to apartments is unknown, if a developer hypothetically spent $100-million on construction, it could qualify for $20-million in federal tax credits plus $20-million in state tax credits. (Axios Twin Cities)
 

Frey says surplus for Agate funding doesn't exist
A week after the Minneapolis City Council passed a resolution putting together $1.5-million using surplus funds from 15 departments to prevent the imminent closure of a 130-bed shelter, the mayor's office claims the surplus money isn't there. According to an email from Deputy City Operations Officer Saray Garnett-Hochuli to t he City Council members, the $1.5-million allocated was made with "no discussion with the Office of Public Service as to the impacts this would have on our departments." The email continues to list 12 cuts made to various spending outlets buy the city, including job advertisement, forgoing continuing education for Assessor's Office staff and cutting funds for North Commons Park by $350,000. (Finance & Commerce)
 

Post-pandemic construction jobs up in Wisconsin, report says
While other industries are struggling to reclaim jobs after the pandemic, the construction workforce successfully bounced back in the last three years. That's according to a report released by the Wisconsin Policy Forum, which measured the state's job recovery after the pandemic. Construction employment was 8.3% higher in 2023 than in 2019, according to the report. State employment averaged over 2.9-million in 2023, which was 1.2% higher than in 2019, the report noted. (Finance & Commerce)
 

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SEPTEMBER 27

Dunwoody president on opportunities in the trades
As the 11th president of Dunwoody College of Technology, Scott Stallman does his part to advance Dunwoody's goal of preparing students to work in high-demand fields, such as the construction trades. The Minneapolis institution has been dedicated to that mission since 1914, when William Hood Dunwoody founded the school. At the time, Stallman said, there wasn't enough skilled labor to meet the high demand for manufacturing jobs. In the following interview, Stallman talks about efforts to improve diversity in the construction trades, the ongoing need for skilled labor, and other topics. (Finance & Commerce)
 

North Dakota PSC okays $3.2B natural gas conversion plant
North Dakota utility regulators approved a Canadian company's large-scale project to convert natural gas into higher-value products such as diesel fuel and lubricants. Cerilon will build the $3.2-billion gas-to-liquids plant near Trenton, west of Williston in Williams County. The North Dakota Public Service Commission is requiring that Cerilon file a construction management plan that would address traffic around the plant. The three-person commission approved the siting application unanimously. (KFGO-AM News)
 

While some Milwaukee projects take off, others hit roadblocks
Some projects such as The Couture get built after years of delay. But for every project without a hitch, some projects such as The Caroline and the Hotel Third Ward hit roadblocks. The latter projects was slated to be an 11-story hotel addition to the historic Hoffco building in the Third Ward. In 2021, Wimmer Properties proposed turning the former warehouse into a 102-room boutique hotel operated as a Marriott Tribute Portfolio. The neighborhood architecture board gave approval, but the Hoofco building currently stands as is. The story is similar for a handful of public and private projects across the city. (Finance & Commerce)
 

Building Buzz: September 9-13

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

From the Dodge Momentum Index rising in August to Rosemount's proposed sustainable aviation fuel facility and Embassy Suites in Bloomington plans for an upcoming $9-million upgrade to the U W-Madison's $75-million gift for an engineering center, here's what was buzzing in the building world the week of September 9-13, 2024:
 

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SEPTEMBER 9

Construction industry adds 34,000 jobs in August
The construction industry added 34,000 jobs in August and the sector unemployment rate fell to its lowest this month. That's according to a report by the Associated General Contractors drawing from government data. The construction unemployment rate fell to 3.2%, which is the lowest rate in August since the association tracked data 25 year ago. Despite the historical data, AGC officials said more firms would have hired workers if they could find qualified people. There were 8.28-million people working in construction in August, data showed. That was an increase of 34,000 from July, and the sector added 228,000 jobs (or 2.8%) during the past 12 months. It's nearly double the 1.5% increase for total nonfarm employment. (Finance & Commerce)
 

Denver developer proposes major data center project in Farmington
Tract, a prolific Denver-based data center developer, wants to bring roughly 2.5-million-square-feet of cloud infrastructure to a Farmington site that includes the Fountain Valley Golf Course and existing school district property. Site plans for the proposed Farmington Technology Park show up to 12 data center buildings and two administrative buildings on a 342-acress site south of 220th Street and east of Chippendale Avenue. Included in the plans are 1.6-million-square-feet of data center space on a "northern campus" and 933,800-square-feet on a "southern campus," according to a city staff report. The Farmington Planning Commission will review preliminary plat, planned unit development and rezoning requests from the developer. (Finance & Commerce)
 

Dodge Momentum Index rises 3% in August
Commercial planning saw another month of broad-based improvements. After slowing down in recent years, warehouse projects have gained momentum over the last three months. Hotels and retail planning have been steadily expanding as well. Data centers continued to dominate large project activity, but the rate at which planning projects entered the queue in August moderated after several months of very strong growth. On the institutional side, healthcare was the primary driver of the past month's expansion, followed by recreational planning. In August, the DMI was 31% higher than in August of 2023. The commercial segment was up 42% from year-ago levels, while the institutional segment was up 8% over the same period. (Dodge Construction Network)
 

Edina considers affordable town homes, apartments at fire station site
Affordable town homes and apartments --- or a mix of the two --- are among the possible uses for land adjacent to Edina's new Fire Station 2. The 8-acre site is located at 4401 West 76th Street, which the city of Edina bought for over $15-million in 2022. So far, the city has completed utilities and foundation work on the new station, with walls now going up, according to city of Edina spokesperson Jennifer Bennerotte. One concept envisions five sets of four-unit, two-story townhomes, which would be owner-occupied, while another imagines a four-story apartment building with up to 50 units and three sets of four-unit, two-story townhomes. The last option suggests the densest concept, with two apartment buildings on the site, according to the city's September newsletter. Edina Housing Foundation hired architecture firm LHB Inc., which is based in Duluth but has a Minneapolis office, to create the concepts. (Minneapolis - St. Paul Business Journal)
 

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SEPTEMBER 10

Artspace begins Northrup King Building arts complex redevelopment
The plan by Artspace Projects Inc., a Minneapolis-based nonprofit developer of space for artists, includes remodeling two vacant buildings on the property, located at 1500 Northeast Jackson Street, for 84 housing units. The developer has plans to add over 8,100-square-feet of future art gallery-exhibit space at another nearby building. The project's general contractor, St. Louis Park-based Watson-Forsberg Co., secured a permit to begin the remodeling work late last month. The permit, issued August 26th, shows construction work valued at $39.5-million. (Minneapolis - St. Paul Business Journal)
 

The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of August 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted August 20 - September 5. The reading is down 1.0 months from August 2023. Only the infrastructure category experienced a monthly increase in backlog among the three major segments, reflecting strength in public construction spending. Nonetheless, over the past year, backlog has declined in all three segments. ABC's Construction Confidence Index readings for sales, profit margins, and staff levels fell in August as well. (Building Design + Construction)
 

Data center developer Tract eyes Farmington golf course
A Colorado builder of data centers wants to redevelop a 342-acre site in Farmington into a tech campus that could include more than a dozen buildings and 2.5-million-squar3e-feet of data center space. Finance & Commerce reports on the propose from Denver-based Tract, which will take a preliminary plat and rezoning plan for the Farmington Technology Park before the city's Planning Commission on September 10th. The site currently consists of the Foundation Valley Golf Course and land owned by Independent School District 192. Tract, which already has the properties under contract, according to a city staff report, wants to rezone the parcels as mixed-use commercial / industrial, which would allow the construction of data centers. (Minneapolis - St. Paul Business Journal)
 

Delta Air Lines, Koch subsidiary to build sustainable aviation fuel facility in Rosemount
The facility is anticipated to be operational in 2025 and will be the fist of its kind in the Midwest. The new facility is expected to produce around 60-million-gallons of blended sustainable aviation fuel (SAF), which will be made up of 50% SAF and 50% conventional jet fuel. The blended fuel will then be delivered to the Minneapolis-St. Paul International Airport via Flint Hill's existing pipeline. The design and scope of the facility is still being finalized, but it will be fully integrated and largely indistinguishable from the current refinery, which is located 17-miles southeast of Minneapolis and spans more than 350-acres, making it the state's largest refinery. (Minneapolis - St. Paul Business Journal)
 

St. Paul multi-family construction dives
Builders aren't building in St. Paul this year, and the city is seeing its slowest residential construction outlook in more than a decade. The Pioneer Press reports that building permits for new multi-family buildings in St. Paul accounted for just 140 housing units in the first six months of 2024, compared to more than 1,000 for the same period a year ago. At this rate, total construction for multi-famly housing could be at 2010-2011 levels, when the market was still recovering from the housing crisis and Great Recession. (Minneapolis - St. Paul Business Journal)
 

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SEPTEMBER 11

Committee tables recovery facility after opposition
The permit for a 24-bed temporary, supportive care facility proposed at the northeast corner of the intersection of Colfax Avenue South and Lake Street was tabled until the next meeting of the Business, Housing and Zoning Committee on September 24th. The applicant, Lakeshore Care Inc., put forward an interim use permit, which would allow the facility to run at the location for five years, and was recommended for approval by the city staff. Opposition to the facility by neighboring businesses and residents mounted to the point where Ward 3 Council Member Michael Rainville moved to table the permit and encouraged the operators to meet with the neighbors. (Finance & Commerce)
 

Dane County Jail construction underway, opting for smaller facility
The Dane County Sheriff's Office in March broke ground on the South Tower project, which aims to replace the outdated cell blocks at the Dane County City-County Building Jail. The consolidation project will reduce the  number of beds and solitary confinement space and expand medical and mental health spaces. The new structure is being built over a surface parking lot between West Doly Street and West Wilson Street in Madison. The overall project, which includes new construction and renovations, will be completed in May 2027. The $207-million project has been in planning since at least 2014. (Finance & Commerce)
 

Fridley seeks developer for rare infill site with platting, soil issues
Fridley's Housing and Redevelopment Authority wants a developer to build slab-on-grade homes on the 5.2-acre city-owned site at the southeast quadrant of Mississippi Street and Central Avenue. A "request for qaulifications" is expected to hit the streets on September 23rd and construction could start as soon as next spring. A city staff report reveals that market conditions and a high water table make the site ideal for slab-on-grade products, which as also known as "villa homes, cottages, and patio homes." The site could accommodate 20 or more homes. (Finance & Commerce)
 

Minneapolis City Council members propose grant to rehab shelter
Agate Housing and Services, a nonprofit shelter that was expected to close permanently may have the chance to be rehabilitated, after three Minneapolis City Council members proposed that a $1.5-million grant be given to the shelter. In a press release, Agate Executive Director Kyle Hanson said the grant means Agate may be able to reopen the shelter if it can secure the other $1.5-million required for the critical repairs to the property before the end of the year. Repairs would require a six- to 12-month timeline. (Finance & Commerce)
 

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SEPTEMBER 12

Embassy Suites in Bloomington gets new management for $9M upgrade
Hilton's Embassy Suites in Bloomington has gone under new management right before it undertakes a large renovation. Hospitality Ventures Management Group will now oversee the 232-suite hotel at 2800 American Boulevard West, the Atlanta-based hotel operator and investor. Hospitality Ventures plans to direct a six-month renovation of the hotel that will cost around $9-million. Upgrades include guest rooms, public spaces, the Iron Rnage Restaurant & Bar, and back-of-house areas. (Minneapolis - St. Paul Business Journal)
 

Knutson says racial 'discrepancies' found on government forms
Knutson Construction says it has discovered 'discrepensies' in employee demographic information reported by the company, an acknowledgement that follows allegations from current and former employees that the company pressured workers to mispresent their race on government recordkeeping forms. In a recent letter to an unidentified client, a Knutson project manager said an investigation has "confirmed a discrepancy in demographic data" limited to a former employee and three current employees. Current employees, the letter states, have "been given the opportunity to update their voluntary EEO-1 [Equal Employment Opportunity] information." At least four other Knutson workers --- all of whom are white --- were misclassified as Asian or Hispanic while working for Knutson on university projects. (Finance & Commerce)
 

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SEPTEMBER 13

St. Paul school among those investing in ground source heat pumps
When students would come to the nurse's office at Johnson Senior High School in St. Paul, Minnesota, complaining of headaches and feeling too hot, Rebecca Randall was always ready. She would hand out water bottles, apply ice packs and ask the students to remove their hoodies and extra layers. Even the nurse's office didn't guarantee a refuge for students, sometimes reaching 85-degrees Fahrenheit. But that was then./ Last fall the school installed a heat pump cooling system, a type that makes use of the cooler temperatures underground. Now the school is no longer counted among the roughly 36,000 in the U,.S. that the Government Accountability Office said need their heating and cooling systems updated. (Finance & Commerce)
 

UW-Madison gets $75M gift for engineering center
Two brothers donated $75-million to the University of Wisconsin - Madison in hopes of jumpstarting construction of a new engineering building. The university wants to build a 395,000-square-foot facility as the "centerpiece" of its seven-building engineering campus. The project has been in planning for years and comes with a $347-million price tag; that sum is split between $197-million in recently approved state funding and a goal for $150-million in private donations. The eight-story building will be named the Phillip A Levy Engineering Center and will allow the College of Engineering to expand its enrollment, officials aid. There will be seven stories above ground and another below. (Finance & Commerce)
 

Building Buzz: September 2 - 6

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

From multiple strong Bloomington development prospects to a proposed reimagining of the I-94 trench and Mortenson's CEO announcing his official retirement later this year to the demolition of a commercial building in Milwauke to make way for a new hotel, here's what was buzzing in the building world the week of September 2-6, 2024:
 

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SEPTEMBER 2

Bloomington has multiple sites with strong development prospects
The International Bureau of Expositions dealt a blow to Bloomington last year when it passed on the south metro city's bid to host the 2027 Expo. Though unwelcome, the outcome wasn't the end of the world for Minnesota's fourth-largest city. The city is left with developable sites near compelling amenities, especially in the South Loop district, the mixed-use area south of Minneapolis-St. Paul International Airport that hosts the Mall of America, several hotels and apartment communities, a number of corporate offices, and dozens of acres of undeveloped and underutilized land. Each of these areas --- and Bloomington's ongoing work to attract new employers amid a prolonged slowdown for the office and retail sectors --- will play a role as the largely built-out city writes its next chapter. (Finance & Commerce)
 

Largest U.S. dam removal project nears completion
For the first time in more than a century, salmon will soon have free passage along the Klamath River and its tributaries --- a major watershed near the California-Oregon border --- as the largest dam removal project in U.S. history nears completion. Crews started using excavators last week to break rock dams that have been diverting water upstream of two dams that were already almost completely removed, Iron Gate and Copco No. 1. The work will allow the river to flow freely in its historic channel, giving salmon a passageway to key swaths of habitat just in time for the fall Chinook, or king salmon, spawning season. (Finance & Commerce)
 

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SEPTEMBER 3

Ex-Knutson employee says company pushed workers to lie about race on forms
A former concrete worker with Knutson Construction has filed a discrimination claim against the Minneapolis-based company, alleging among other things that she was abruptly fired after refusing to lie about her race on an Equal Employment Opportunity form. (Finance ;& Commerce)
 

Lakeville considers rezoning church land to add in twin homes
The Lakeville Planning Commission will consider rezoning a church property at its August 29th meeting to allow a 24-unit twin home project in the northeastern part of the city. Before the commission is an amendment to the comprehensive plan to move from a low-density designation to a low / medium density designation, as well as a rezoning request from a single family resident district to a single and two-family district. The 24-units would be spread out across 12 buildings. The twin homes will be owner-occupied, which is mostly reflective of townhome developments in Lakeville. The homes will be between 1,300-square-feet and 1,600-square-feet, according to planning documents, which includes a two-car garage. (Finance & Commerce)
 

St. Croix National Golf & Event Center undergoes $7M renovation
So far, the club's owner, Kristine Botelho, has completed two out of three phases of the renovation project, located in Somerset, Wisconsin. Phase One included adding a $400,000 mini-golf course, designed by Spicewood, Texas-based Pelz Golf, along with a $5-million renovation and extension of the clubhouse, and the construction of a new $1-million patio. The clubhouse renovation more than quadrupled its space, to 8,000-square-feet, and added a full restaurant, patio, golf simulators, pool and dart boards. Phase Two was the construction of a new year-round $1-million event center, complete with a private courtyard and the capacity for 250 people. Phase Three will introduce two pickleball courts, wintertime bike trails, and ongoing improvements to the golf course. (Minneapolis - St. Paul Business Journal)
 

Sustainable: Proposal reimagines I-94 trench
Our Streets, an advocacy organization best known for once running Open Streets, envisions a new I-94 with a 6-mile trench from downtown St. Paul to Minneapolis removed and filled to create a boulevard for housing, parks, offices, and retail. Other cities, including Oakland, California; Montreal; and Rochester, New York; have embarked on similar projects for portions of their freeways. Nor is I-94 the only highway that could undergo significant change. MnDOT has been rethinking Olson Memorial Highway and making it appealing for pedestrians, bikers, and transit riders. The report showcased the environmental and development potential of transitioning the I-94 corridor to an at-grade boulevard. Developed by Visible City with assistance from Toole Design Group and Smart Mobility, the study suggest a boulevard would open 366-acres of right-of-way and create the potential for housing, parks, and commercial nodes. (Finance & Commerce)
 

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SEPTEMBER 4

700-unit development proposed for ''significantly underhoused' Wisconsin village
Board Companies presented plans for the Inspire Prairie Springs development at 11423 110th Street at a village board meeting. The developer called for tax increment financing assistance from the village and said the project would cost around $184.9-million. The project site is near Interstate-94 by the recently completed Haribo factory, the Uline corporate park and Pleasant Prairie Premium Outlets. The developer showed plans for at least eight buildings across 66-acres which will be built in two phases. Amenities include a clubhouse, pool, pickleball courts, playground, putting ground, dog run and a one-mile walking path. The apartments will be a mix ranging from studios to three-bedroom units. (Finance & Commerce)
 

Alliance Housing announces project groundbreaking
Construction began on the Kyle Square Garden conversion project after a groundbreaking that took place on September 5th, according to a press release from Alliance Housing, which owns the property. The building that is being converted is at 700 10th Avenue South in downtown Minneapolis. Built in 1941, the property will become 28 one-bedroom units and 31 studio apartments for people who have experienced homelessness. The total cost of the project is about $25-million, according to the press release, with funding coming from Minnesota Housing, the Metropolitan Council, Hennepin County, Minneapolis Public Housing Authority, and others. (Finance & Commerce)
 

Eagan considers change to make ay for veteran housing
A comprehensive guide plan amendment that would change land owned by Mount Calvary Lutheran Church in Eagan from quasi-public to medium density residential was considered and eventually approved by the Eagan City Council at its September 4th meeting. The guide plan amendment paves the way for 26-units of residential townhomes across six one-story buildings to be constructed on property at 3920 Rahn Road. The 26-unit development will be reserved for veterans, and the Minnesota Assistance Council for Veterans, or MACV, would provide support services for residents, according to planning commission testimony. (Finance & Commerce)
 

Kraus-Anderson finishes Blooming Prairie school renovation
The construction company announced its Rochester office had wrapped on a $34-million renovation for the Blooming Prairie Public Schools expansion of their elementary and high school buildings. The expansions spans 79,000-square-feet and brings new classrooms on board at the high school, as well as an auditorium, gym additions and further interior renovations, according to a press release from the construction group. The entire timeline of construction took just over two years, having originally started in June 2022. (Finance & Commerce)
 

Kraus-Anderson wraps $28.5-million school construction project in Minnesota
Kraus-Anderson Duluth has completed construction on North Star Elementary, located at 411 South 5th Avenue. in Virginia, Minnesota. Sited on a large city block that formerly housed the district's elementary and high school, North Star Elementary stands at three stories tall, minimizing its building footprint and reclaiming greenspace --- a longstanding desire of the surrounding community. (RE Journals)
 

Milwaukee County seeks federal funds for airport concourse reconstruction
The county wants to demolish Concourse E at Milwaukee Mitchell International Airport, which has been closed since 2017, and replace it with a larger terminal with more passenger capacity. Airport officials said the project would cost around $80-million and solicited a package of bids over the summer. The project has been in planning since 2016 and was shovel ready in 2020 but was delayed due to the COVID-19 pandemic. Construction could start in 2025. Before the pandemic, the airport shared plans for a 50,000-square-foot international concourse split into two phase: one with a two-gate facility and a second with new gate seating space and additional arrival and departure gates. The current international terminal was built in 1975 with around 23,000-swuare-feet of space. Passengers must either shuttle or take a lengthy walk to reach the detached terminal from the main terminal or parking garage. (Finance & Commerce)
 

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SEPTEMBER 5

Biden promotes rural electrification funding for Wisconsin
President Joe Biden planned to visit Westby in southwest Wisconsin to announce $7.3-billion in investments for 16 cooperatives that will provide electricity for rural areas across 23 states. The intent is to bring down the cost of badly needed electricity connections in hard-to-reach areas. (Finance & Commerce)
 

Dakota County CDA pays $6.25M for former Delta site in Eagan
The Dakota County Community Development Agency wants to do its part to bring new housing to a former airline data center site in Eagan, a key property within an area that could eventually hold more than 1,000 new dwelling units and other fresh uses as part of a major redevelopment push. A Dakota County CDA official told Finance & Commerce that the plan is to demolish the data center, clear the site, and eventually build new housing there in line with the city's plans. Based on a redevelopment analysis, the city envisions up to 1,100 new homes and other uses on the data center property and adjacent sites. (Finance & Commerce)
 

Johnson to retire as M.A. Mortenson CEO, Cunz to take over
The company announced September 5th that Dan Johnson's last day as CEO will be December 31st, though he will continue to serve on the company's board of directors. Taking over for Johnson will be current Mortenson President Derek Cunz, who will begin his new duties on January 1, 2025, according to a press release. (Finance & Commerce)
 

M.A. Mortenson CEO Dan Johnson retiring
M.A. Mortenson Co.'s CEO, Dan Johnson is retiring at the end of 2024 after nearly eight years leading the Golden Valley, Minnesota-based construction company. The retirement is part of a long-planned leadership transition at Mortenson. Johnson will be succeeded by current president Derek Cunz, who was promoted to that role in 2022 and, starting in 2025, will serve as president and CEO. (Minneapolis - St. Paul Business Journal)
 

Roseville weighs $77M government campus funded by sales tax
Voters in Roseville will decide this fall on a half-cent sales tax that would go toward construction of a $77-million civic campus for city buildings. The plan, called Invest in Roseville, would add a new public works maintenance facility and a license and passport center at Lexington Avenue and Woodhill Drive. The new facilities would replace current buildings that date back to the 1950s. (Minneapolis - St. Paul Business Journal)
 

Wisconsin groups pitch $133M plan to restore the Mitchell Park Domes
The Friends of the Domes, Milwaukee County Parks and Madison-based The Alexander Company presented plans to restore existing dome structures, expand the gift shop, create a children's learning space, build a new cafe, a new courtyard and construct a nature learning center. The project would also bring improvements to Mitchell Park. The Friends of the Domes' project is split into two phases: The first phase is budgeted at $107.4-million and includes expanding the gift shop, creating the "Little Sprouts Dome" learning center in the fourth dome and building a new cafe. The second phase includes a new courtyard and early plans for a 25,000-square-foot, two-story learning center building. The second phase is budgeted at $26-million. (Finance & Commerce)
 

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SEPTEMBER 6

Bloomington panel recommends approval of Southtown plans
The commission signed off on preliminary development plans and other approvals the evening of September 5th for the proposed 120,000-square-foot sports-themed store, which will anchor a partial redevelopment of the Southtown Shopping Center at Penn Avenue and Interstate-494. Included in the Dick's House of Sport project is an 18,000-square-foot outdoor athletic field on the north side of the shopping center. New development will rise on lots previously occupied by the now-demolished Toys 'R' Us and Herberger's at Southtown. Besides the two-story Dick's House of Sport, future development could bring a medical office building with structured parking and multi-family housing with grade-level retail and restaurant uses, according to a project narrative. (Finance & Commerce)
 

Construction begins on long-sought dog park in downtown Milwaukee
Officials from Milwaukee Downtown Business Improvement District #21 and the Historic Third Ward Business Improvement District #2 broke ground on a nearly 22,000-square-foot first-of-its-kind turf park for large and small canines. Butler-based Berghammer Construction is the general contractor for the $2-million project and officials expect the project to be completed before the end of the year. The park will have fenced areas for big and small dogs, a washing system for the turf, and new lighting at 103 West Clybourn Street underneath the Interstate-794 Freeway. Fromm Family Pet Food is the title sponsor of the dog park and is planning to build a brewery close to the site. (Finance & Commerce)
 

Construction ramps up on new police precinct [Download] 
Construction has begun on Minneapolis Police Department's planned First Precinct police station at downtown Minneapolis' Century Plaza site. However, the timeline for the planned conversion of a major portion of the property into a hotel is still unclear. Demolition work is largely complete at the location of the planned precinct, which is expected to open by the first quarter of 2025. The First Precinct is now located in leased space at 10 North Fourth Street. Last month, city officials issues a permit to Minneapolis-based Ryan Cos. US Inc. for the buildout of a police station at the site, located at the corner of South 11th Street and Third Avenue. Swervo Development Corp. won city approval in 2022 to convert part of the property into a 213,000-square-foot hotel with 149-rooms and about 11,000-square-feet of rooftop amenity space. The First Precinct would occupy about 37,000-square-feet in another part of the building. (Minneapolis - St. Paul Business Journal  |  Revisit article published on August 29, 2024)
 

Dakota County buys former Delta property at fraction of 2013 price
The county paid $6.25-million for 1500 Towerview Road, according to a real estate value published. The site, which includes a 150,000-squre-foot data center building, was last sold by Delta Air Lines to Digital Realty in 2013 for $37-million in a sale-leaseback deal. Delta has since vacated the property, and Dakota County wants the site as part of an effort to stimulate housing construction. Finance & Commerce talked with officials at the county's CDA, who said the building will be demolished to clear the site for eventual housing, (Minneapolis - St. Paul Business Journal)
 

Demolition of commercial building to make way for Milwaukee hotel
Lannon-based HM Brandt applied for a permit to raze a nearly 12,000-square-foot commercial building at 1709 North Farwell Avenue, according to city records. In April, Brookfield-based Klein Development gained approval from the Milwaukee Common Council to rezone for an 11-story, 130-room hotel at 1709-1723 North Farwell Avenue. The hotel, still unnamed, will be the first upscale hotel of its kind in the area and replace the two-story building known as Farwell Point. The hotel will come with aa on-site parking stalls and 59 stalls in a lot off-site, which is required by the zoning change. No building permits have been filed yet for hotel construction. (Finance & Commerce)
 

Ex-MLB pitcher Jim Brower seeks to expand baseball-training business to Plymouth
Former Major League Baseball player and Minnetonka native Jim Brower is seeking to expand his baseball-training business with a 32,000-squre-foot facility in Plymouth, The proposed facility would allow Brower Baseball to serve more players and reach more communities, including Hampel, Maple Grove, Minnetonka, Wayzata, Eden Prairie and Chanhassen. The facility is proposed to be located within Plymouth's Jet 55 Corporate Center, a 564,504-square0foot building at 12755 Highway 55. If everything goes according to plan, Brower hopes to open the facility this winter. (Minneapolis - St. Paul Business Journal)
 

Riverview Corridor rolls to a close with no streetcar, and no bus
After some eight years of debate, Ramsey County officials have canceled planning for the Riverview Corridor, a potential streetcar to connect downtown St. Paul to the Mall of America in Bloomington. The 12-mile corridor had drawn increasingly vocal opposition from property owners along West Seventh Street, including many who raised concerns about crime and public safety or said businesses that had barely re-emerged from the pandemic would not survive two years or more of heavy construction. (Yahoo! News)
 

Building Buzz: August 26 - 30

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

From Blaine's advancing redevelopment plan to hotel construction hitting its highest level in 16 months and the Rapidan Dam's plan to be torn down to what to expect in the industry come 2030, here's what was buzzing in the building world the week of August 26-30, 2024:
 

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AUGUST 26

Blaine advances redevelopment plan with warehouse purchase
Blaine purchased a warehouse in the area around the 105th Avenue redevelopment project for $3.99-million, according to a certificate of real estate value. The redevelopment, which was first brough forward earlier this spring, aims to create an entertainment hub in Blaine, which would center on a new stadium for a yet-to-be identified professional baseball team. In late May, the Blaine City Council gave preliminary approval for $34-million worth of tax abatement bonds for the stadium. The redevelopment is intended to be constructed in phases, according to the city's webpage on the redevelopment. Phase 1 will be centered on the building of the sports facilities on the property, including the stadium, "golf entertainment" and a year-round pickleball facility, the webpage says. Future phases of the project will bring hotels, housing, restaurants and office space to the property. (Finance & Commerce)
 

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AUGUST 27

Bloomington weighs rezoning to allow rental complex to grow
Attention Bloomington families: New apartment units are potentially coming to the Southgate Apartments. Mid Continent Management Corp., the owner of Southgate, is turning to the Bloomington Planning Commission in hopes of diversifying the options available at the 1969-built apartment complex by constructing 12 new three-bedroom apartments. The complex consists of four apartment buildings located at 1001 and 1101 East 80th Street, as well as 8100 and 8070 12th Avenue South. Spread throughout the four structures are 148 one-bedroom units and 96 two-bedroom units. Should the rezoning happen, the project would bring four three-bedroom units each to the 1001 building and the 8070 building. The remaining four three-bedroom units would then be split evenly between the 8100 and 1101 buildings, according to planning documents. (Finance & Commerce)
 

Dick's House of Sport planned for Bloomington
Kraus-Anderson is heading to an August 29th Bloomington Planning Commission meeting to propose a 120,000-square-foot Dick's House of Sport and an 18,000-square-foot outdoor athletic field on the north side of Southtown Shopping Center at 7803 Penn Avenue South, just east of a Kohl's store. The development is in the initial phase in a "multi-phase, multi-decade redevelopment of Southtown," according to city documents. Construction could begin this fall. Kraus-Anderson will build a two-story, single-tenant retail building to accommodate the store, taking the spot of Herberger's and Toys 'R' Us, both of which are almost completely demolished. A future development plan includes a four-story medical office building. The developer earlier this year had approached the city with more general plans for Southtown, saying only that the tenant would be a major sports anchor with an adjacent athletic field --- a clue that it would be a House of Sport, which leans into experiential retail. (Minneapolis - St. Paul Business Journal)
 

Hotel construction hits highest level in 16 months
The volume of hotel rooms currently being built in the United States hit its highest level in 16-months, according to CoStar's latest June 2024 data. While globally, the real estate information and analytics company finds hotel construction has dropped or leveled off, the U.S. has more than 157,000 room sunder construction, and another 600,000 in the planning stages. Even though numbers have not fully rebounded to pre-pandemic levels --- the U.S. peaked at 220,000 new rooms opened in April 2020 --- they demonstrate strong demand despite the headwinds of inflation and high interest rates. (Finance & Commerce)
 

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AUGUST 28

Graham breaks ground on $55M Iowa behavioral hospital
Graham Construction & Engineering broke ground on a new $55-million , 200,000-square-foot behavioral health hospital in Council Bluffs, Iowa, for Methodist Jennie Edmundson Hospital and Acadia Healthcare Company, project officials announced. The project, designed by Stengel Hill Architecture, will serve communities in western Iowa and eastern Nebraska at a time when there is a shortfall of 300 inpatient behavioral health beds in the region. Last month, project officials said the facility is also expected to include large treatment rooms for group therapy sessions; centralized nursing stations that will give staff a line of sight to all common areas; high ceilings and large windows to take advantage of natural light; outdoor spaces; and state-of-the-art and high-tech features. The hospital is scheduled to open in 2026. (The Construction Broadsheet)
 

Rapidan Dam and bridge to be torn down ahead of yearslong rebuilding process
The Blue Earth County Board of Commissioners voted to remove the Rapidan Dam near the city of Mankato, about 80 miles south of Minneapolis, and replace the County Road 9 Bridge, both of which were at risk of crumbling. The officials jumpstarted what will likely be a yearslong rebuilding process as the structural integrity of the dam and bridge remain uncertain. Studies commissioned by the county in 2021 found repairing the dam would cost $15-million and removing it would cost $84-million, but environmental conditions have changed since then. The next step will be securing funding to finance the repairs, which could come from a combination of state and federal sources. The county is working to develop a plan with federal agencies including the Federal Emergency Management Agency and the Federal Energy Regulatory Commission. (Finance & Commerce)
 

Sofidel America plans major expansion in Duluth
Solfidel America Corp., the U.S. operation of Italy-based tissue paper manufacturer Sofidel, wants to add nearly 600,000-square-feet of space to its Duluth operations, a project that could bring an additional 160 jobs to the city, company officials say. This week, the city launched an environmental review of the project, which would support "expanded manufacturing, packaging, warehousing, and shipping capabilities" in Duluth and help the company convert tissue rolls and materials into "various commercial products," according to an Environmental Assessment Worksheet. Sofidel America is proposing four new buildings with a combined 588,759-square-feet of space. State law requires environmental reviews for any new construction or expansion project of an industrial facility with 400,000-square-feet of additional space, according to the EAW. The expansion would include a 297,778-square-foot "conversion building" with 42,422-square-feet of conjoining annex, lockers, and officers. Also planned are a 17,743-square-foot corridor, 76,755-swuare-feet of auxiliary material storage, 108,036.6-square-feet of warehousing, 29,932-square-feet of shipping space, and more. The project includes "storm water filtration basins, modification to railroad crossings, installation of new gas and electrical service lines, employee and truck parking, exterior lighting, and pavement." The timeline calls for major construction in 2025 and 2026. (Finance & Commerce)
 

Woman-owned firm partners with Mortenson to build Milwaukee museum
In an industry where representation is sorely needed, Mortenson and woman-owned ALLCON will work together on a space inside the Milwaukee Public Museum (MPM). The museum started construction in June on a 200,000-square-foot, five-story building on North Sixth Street and West McKinley Avenue. The $420-million structure will replace the museum's former home at 800 West Wells Street as the old facility faces millions worth of deferred maintenance. Construction on the new structure is expected to be complete in 2027. MPM is including minority- and woman-owned businesses in the construction process to ensure the economic benefits of a new building will trickle down to the surrounding community. ALLCON will build a 4,000-square-foot classroom and retail space in the museum's first floor and include as many local subcontractors, suppliers and trades as possible. In partnership with Mortenson, the contractor is offering learning experiences to its partners on the job. (Finance & Commerce)
 

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AUGUST 29

Contractors are all in on hiring. Staffing isn't getting easier.
Contractors are on a quest for more workers, but they're still struggling to find them. A new Associated General Contractors of America survey has shared numbers providing context around the issue. The majority of U.S. contractors have increased their headcount in the last 12 months, according to the survey of AGC members, and more respondents this year are looking for both hourly craftworkers and salaried contractors. More than nine in 10 report they have trouble finding the people they need. Indeed, the report indicates that the lack of workers has created a problem for delivering projects. (Construction Dive)
 

Major infrastructure investments made in Wisconsin
Gov. Tony Evers recapped transportation projects and investment following visits to local communities over the past several weeks. Both state and federal organizations invested in transportation and infrastructure projects across Wisconsin, from rebuilding bridges and roads to lead service line replacements and electric vehicle charging. The governor also touted fixing 7,000-miles of roads and 1,780 bridges since his administration started in 2019. (Finance & Commerce)
 

US DOT proposes rule on pedestrian accessibility standards
The U.S. Department of Transportation published a proposed rule on August 22nd to incorporate accessibility guidelines for pedestrian facilities in the public right-of-way, including sidewalks, crosswalks, pedestrian traffic signals, transit stops and on-street parking. The guidelines that DOT looks to incorporate were issued last year by the Architectural and Transportation Barriers Compliance Board. Those guidelines, which became effective September 7, 2023, fall under the American with Disabilities Act, which applies to state and local government facilities among others, and the Architectural Barriers Act, which applies to many federal facilities. (Smart Cities Dive)
 

What to expect from the construction industry by 2030
By 2030, the construction industry is set to undergo a huge transformation driven by the adoption of emerging technologies and a growing focus on collaboration and sustainability. Innovations like Building Information Modeling (BIM), 3D printing, drones, smart materials, robotics, and artificial intelligence (AI) are set to play a major role in this shift, leading to a more efficient, modern, and environmentally friendly way of building. (AZO Build)
 

Work begins on police precinct at downtown Minneapolis' Century Plaza
Construction has begun on Minneapolis Police Department's planned First Precinct police station at downtown Minneapolis' Century Plaza site. But the timeline for the planned conversion of a major portion of the property into a hotel is still unclear. Demolition work is largely complete at the location of the planned precinct, which is expected to open by the first quarter of 2025, Barbara O'brien, the city's director of property services, told a Minneapolis City Council committee earlier this month. The First Precinct is currently located in leased space at 10 North Fourth Street. Last month, city officials issued a permit to Minneapolis-based Ryan Cos. US Inc. for the buildout of a police station at the site, located at the corner of South 11th Street and Third Avenue. The Swervo-tied entity in 2022 won city approval to convert part of the property into a 213,000-square-foot hotel with 149 rooms and about 11,000-square-feet of rooftop amenity space. The First Precinct would occupy about 37,000-square-feet in another part of the building. (Minneapolis - St Paul Business Journal)
 

AUGUST 30

Ancient civilizations offer lessons for today's builders
Modern buildings tend to take electricity and air conditioning for granted. They often have glass facades and windows that can't be opened. And when the power goes out for days in the middle of a heat wave, as the Houston area experienced in July 2024 after Hurricane Beryl, these buildings can become unbearable. Yet, for millennia, civilizations knew how to shelter humans in hot and dry climates. With global temperatures rising, studies show that dangerously hot summers like those in 2023 and 2024 will become increasingly common, and intense storms might result in more power outages. To prepare for an even hotter future, designers today could learn from the past, looking at techniques and methods used by the ancient Sumerians, Egyptians, Puebloans, Muslim caliphates, and Mayans and Teotihuacans. (Finance & Commerce)
 

Construction firms struggle to find craft workers
National contractors came out with a recent survey that most construction companies are having a hard time finding craft workers and called on the federal government to invest in workforce development to bridge the gap. Currently, contractors across the country are looking for more workers and are having difficulty filling job openings, according to a survey by the Associated General Contractors of America and human resources company Arcoro. The association reported that 94% of respondents to the survey said they have openings for craft workers and 85% have openings for salaried workers. Around a third of contractors working in the building construction, highway, federal and heavy and utility infrastructure subsectors reported fallen headcounts in the past year. (Finance & Commerce)
 

Labor Department projects 10-year gain for construction employment
Construction employment is projected to climb by 380,100 jobs over the next decade and record a model annual growth rate in that period, the U.S. Bureau of Labor Statistics says in a new forecast. The bureau's annual employment projections report, which was released on August 29th, says construction's compound annual growth in the 2023-2033 period will be 0.5%. That compares with a rate of 0.1% for all industries. The new report also has detailed breakdowns for construction job categories. BLS projects an employment increase of 238,900, or 6.3%, over the 2023-2033 span for construction trades workers. (Engineering News-Record)
 

What the Twin Cities can learn from Calgary about office conversions
Earlier this month, St. Paul Mayor Melvin Carter stood before constituents, his fellow elected officials and others and proposed a new budget. In it was money designated for facilitating office-to-housing conversion projects in the capital city. Carter said in his speech that the money will be going toward a joint study with the Downtown Alliance and $1-million of it will cover waiving application fees for two projects. One of the most famous and successful examples of a city creating such a program is in the Canadian city of Calgary, Alberta. The program's goal was to convert 6-million-square-feet of office space in the city's downtown over 10 years. In the first three years, the program, called the Downtown Calgary Development Incentive Program, now has 2-million-square-feet of office space in some part of the conversion process, according to Calgary staff. Developers in the city have praised the program and said it has worked so well that the program ran out of money. So, what can Minneapolis, St. Paul, and any other Minnesota city learn from Calgary and its redevelopment efforts? (Finance & Commerce)
 

Building Buzz: August 5 - 9

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

From Milwaukee's potential I-794 replacement project to an OK'ed warehouse plan in Coon Rapids, and Stearns County's search for a 'greenfield' for a justice center project to a proposed 148-unit apartment building in Apple Valley, here's what was buzzing in the building world the week of August 5-9, 2024:
 

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AUGUST 5

Hundreds of homes proposed for northwest area of Inver Grove Heights
National Land Holdings LLC, a land developer, is floating plans for 524 apartments, 145 townhomes and 83 single-family lots on the 108-acre development site at 6470 and 6680 South Robert Trail and 1401 70th Street East, which is on the east side of South Robert Trail between 70th Street and 65th Street, according to a staff report for the August 7th Inver Grove Heights Planning Commission meeting. The proposed housing mix includes "high-quality, market-rate apartments" for "professionals and senior residents desiring single-level living with substantial amenities," according to the narrative. Also planned are townhomes and villas for "families, seniors and professionals." (Finance & Commerce)
 

Milwaukee's potential I-794 replacement project comes to life
A new interactive map will show the public what a mile stretch of downtown Milwaukee could look like without an existing freeway spur. It's part of a campaign from Rethink 794, a campaign lobbying for the Wisconsin Department of Transportation to remove Interstate 794 from the river to the lakefront. Last year, WisDOT shared alternative concepts ranging from removing ramps to getting rid of the freeway completely and opting for an at-grade boulevard. (Finance & Commerce)
 

Sustainable: 'Hempcrete' offers low-carbon building insulation
Located two hours southwest of the Twin Cities near Morton, the Lower Sioux Indian Community is one of the national leaders in testing and using "hempcrete," a plant-based replacement for typical insulation. A few years ago, tribal leaders wanted to create more employment opportunities for its more than 1,100 members and decided to pursue developing a growing, processing and building system for hempcrete. (Finance & Commerce)
 

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AUGUST 6

ABC of Wisconsin breaks apprenticeship record
The Associated Builders and Contractors of Wisconsin celebrated a record-breaking 2,475 apprentices this year joining its statewide program. In June, there were 286,000 openings in the construction industry, preliminary data from the U.S. Bureau of Labor Statistics showed. However, construction associations report that more positions are needed to keep up with demand in coming years. There were 600 apprentices who enrolled for the first time ever this year, according to ABC officials. This is up nearly 100 from the year before, officials said, and the average apprentice age moved from 28 to 25 and many start at 18, making this year's enrollment younger than previous sessions. (Finance & Commerce)
 

Apartment development site in Minnetonka sells for $5.8M
Greystar's long-planned 269-unit apartment building in Minnetonka is on the cusp of construction following a nearly $6-million property sale. GS-CV Opus Station Owner LLC, an entity related to South Carolina-based Greystar, paid $5.8-million for the property, an existing office building, at 10701 Bren Road East in the Opus Business Park area, according to a newly published certificate of real estate value. A project narrative reveals that Greystar plans to tear down the 1980s-vintage office building at the site to make way for the apartment building. Located near a future Southwest Light Rail station, the development site is accessible to parks, trails, retail attractions and employers that include Boston Scientific, United Health Group and Digital River, according to plans submitted to the city. Designed by ESG Architecture & Design, the largely market-rate project will include 14-units affordable at 40% of the area's median income and 14 at 80%. (Finance & Commerce)
 

Burns & McDonnell signs lease at Bloomington's Norman Pointe II
Engineering, construction and architecture firms Burns & McDonnell will move to a new 67,000-square-foot office space near Normandale Lake in Bloomington. The company is expected to move in 2025. Built in 2007, the 10-story Norman Pointe II spans 331,500-square-feet. Amenities include a cafe, 100-person conference facility, fitness center, daycare, and 1,362 parking spaces, according to the announcement. The company decided on the new office to provide a better working environment for its employees in a space that will be customized to spur collaboration. Burns & McDonnell will also display signage on the building. (Minneapolis - St. Paul Business Journal)
 

Coon Rapids OKs plan for warehouse
Steve Poindexter of JHM Medical Park LLC is proposing the 39,248-square-foot Holly Street Industrial building on a 2.82-acre site at 9255 Holly Street Northwest, according to city documents. The City Council approved a site plan for the project. Next steps include issuance of a building permit. In June, the Coon Rapids Planning Commission requested facade and site improvements for the project. After the developer added nine windows to the building, among other adjustments, the commission recommended approval of the site plan. The building will be about 95% to 98% warehouse space and will also include space for offices, distribution and possibly light assembly, according to a city staff report. (Finance & Commerce)
 

MSP Airport's Terminal 2 could double in size by 2040
The plan for Terminal 2 --- the main hub for Minnesota-based Sun Country Airlines --- is part of a bigger vision to overhaul almost every corner of MSP. Officials want to make room for the 50% increase in passenger traffic that they expect over the next 14 years. The airport announced construction has begun on a $268-million project to add two gates, a larger waiting area, and more restrooms and concessions to the north end of Terminal 2. That project will wrap up in early 2027. Later this year, two new gates will also open on the south end of the terminal. Additional phases promise to add nine more gates to the north end of Terminal 2, for a total of 36 gates by 2040. The plan also calls for an underground "people mover" to connect it with Terminal 1 behind airport security. (Axios Twin Cities)
 

Plymouth delays vote on Doran Cos. multi-family project
The proposed development of a two-building, 352-unit multi-family development, was put forward by Doran Cos. --- a Bloomington company led by Anne Behrendt --- and would redevelop four "fuctionally obsolete" office buildings on the site, located at or near 3131 Fernbrook Lane, according to planning documents. Moments before the council tabled its verdict on the development, it vcoted to amend the comprehensive plan to guide the site as LA-5, which would allow a development like the one Doran is proposing for the site. (Finance & Commerce)
 

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AUGUST 7

Appleton airport continues expansion, aims to open new gates in March
Appleton International Airport continues construction to expand one of their terminals. The expansion will more than double its size, expanding to ten gates in the terminal. Additional amenities will include a sensory support room, a service animal relief area, additional ramps for widespread accessibility as well as a beer garden, bar and restaurant. Solar panels are also expected to be added at a later date which would allow the airport to produce, store and use their own energy. (NBC26 - Northwest Wisconsin)
 

Greystar locks in land at Opus Business Park for long-planned apartments
South Carolina developer Greystar seems ready to move ahead on a 269-unit apartment complex in Minnetonka after buying an office building for sale for $5.8-million. Developers plan to demolish the existing structure and replace it with a mostly market-rate apartment building, with 114-units affordable at 40% of area median income and another 14-units affordable at 80% of median income. Amenities will include a pool, golf simulator, sauna, and remote-work suites. (Minneapolis - St. Paul Business Journal)
 

Stearns County seeks 'greenfield' site for $325M justice center
Stearns County residents will vote up or down this fall on a proposed sales tax to building a new $325-million jail, courthouse and law enforcement center in St. Cloud --- an ambitious "justice center" project that will relieve pressures on existing undersized and aging facilities, including a historic downtown St. Cloud courthouse built more than 100 years ago. Given the needs, the project will go forward no matter how the vote on a 3/8-cent local option sales tax turns out, county officials said. Funding options include the sales tax, which would have a roughly $85-per-year impact on households, or a property tax with a $185 annual impact, according to county documents. Though the county hasn't settled on a specific site, county officials say it will be built on a greenfield location in St. Cloud. Even so, site selection --- and the potential impacts of moving county services out of downtown St. Cloud --- was a hot topic at the latest St. Cloud City Council meeting. (Finance & Commerce)
 

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AUGUST 8

Construction projects reshape Green Bay area and beyond
The Fox Valley, including cities such as Appleton and Green Bay, this year rolled out a dozen projects that are reshaping its urban centers, industrial core and sports stadiums. These projects include renovations at Lambeau Field and recent investment in building Titletown, an entertainment and tech district dedicated to the Parkers stadium --- the latter of which team leadership credits for the NFL Draft coming in 2025. Housing projects persist as the Breem Bay metro area issued more housing permits per capita than before the pandemic, according to research. The Packers are leading projects in and outside of Lambeau Field, including 220-foot by 48-foot video boards on the north and south ends of the field and upgrades to the concourse, according to a team video Neenah-based Miron Construction crews were seen lifting supplies with cranes on different ends of the stadium. The team will also carry out construction of a third locker room, Mark Murphy, president and CEO of the Packers, told The Business News. In Titletown, crews are wrapping up a two-story, 46,048-square-foot Titletown Fit on the Titletown Podium, officials said. The project calls for a large fitness gym with space for a cafe, restaurant or retail use. (Finance & Commerce)
 

DNR urges developer to minimize impacts on Thomson Reuters site
The Minnesota Department of Resources is weighing in on Ryan Cos.' plans to bring new industrial and housing development to part of the Thomson Reuters property in Eagan, urging the city and the developer to take special care to protect local habitats and wetland son the 179-acre site. In a recent comment submitted to the city, the DNR noted that the removal of more than 100-acres of "woods, grasslands and wetlands" from the site would be "extremely impactful to local wildlife, water quality, the urban heat island index, and the aesthetic and recreational quality" of the area, which is framed by Yankee Doodle Road, Elrene Road, and Highway 149. The DNR, which submitted its comments as part of an environmental review process, called for the city to develop a management plan to reduce the amount of chloride released into lakes and streams. Also recommended were the use of native seed mixes in landscaping, and the installation of solar panels on new industrial buildings. (Finance & Commerce)
 

Woodbury considers 'last mile' distribution center
Woodbury may be a full warehouse richer  in a few years, as Ryan Cos. has proposed building a 225,000-square-foot industrial distribution center, according to recent planning documents. A hearing for the development, dubbed with the code name "Project Wrangler," went before the Woodbury City Planning Commission, where it received a recommendation for approval. Wrangler would be located at the southwest corner of Hudson Road and Manning Avenue, according to documents, near other Ryan-built distribution warehouses for Amazon and Kindeva. The warehouse is referred to in documents as a "last mile" facility and "will likely enhance product delivery times for the community." (Finance & Commerce)
 

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AUGUST 9

148-unit affordable apartment building proposed in Apple Valley
The Apple Valley Economic Development, which issued a request for proposals for the site about two months ago, heard pitches from three finalists the afternoon of August 8th. The EDA took an especially strong liking to the pitch from Real Estate Equities, which wants to bring 148 affordable housing units to the 3.1-acre property at 15584 Gaslight Drive. All three proposals were strong, but the Real Estate Equities presentation "rose to the top," Mayor Clint Hooppaw said. The mayor added that the city looks at the "overall package" when considering development proposals, including depth of experience, parking and requests for financial assistance. Real Estate Equities, which has been developing residential properties since 1972, is proposing 148 affordable apartments and 237 parking stalls, including 149 underground and 88 surface spaces. Unit sizes range from one to three bedrooms. Proposed amenities include an outdoor patio, a playground, dog run, fitness center, and a clubroom. (Finance & Commerce)
 

Doran Cos., Inland propose townhomes in Minnetonka off Interstate 394
Doran Cos. and Inland Development Partners have recently submitted the concept plan to redevelop the 1.2-acre property, located at 11800 Wayzata Boulevard right off Interstate 394, to build 26 market-rate rental townhomes in Minnetonka. The site now houses a one-story office building, which would be demolished to make way for the new development. The new three-story townhomes, spread across four separate structures, would each have three bedrooms and span about 1,800-square-feet. Each unit would also have a two-care garage with private access. The project would have 12 guest surface parking stalls, two short-term package delivery stalls and a connection to a walking loop to the Marsh Run II apartments. City documents don't mention a planned start date, but construction is estimated to last 12-months after groundbreaking. (Minneapolis - St. Paul Business Journal)
 

Building Buzz: July 29 - August 2

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

From plummeting construction job openings in June to the city of Richfield asking voters for a large investment in parks and recreation and work underway at both Terminal1 & Terminal 2 at MSP Airport to rock band Metallica supporting students of the trades, here's what was buzzing in the building world the week of July 29-August 2, 2024:
 

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JULY 30

ABC: Construction Job Openings Plummet by 71,000  in June
The construction industry had 295,000 job openings on the last day of June, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics' Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 71,000 in June and are down by 119,000 from the same time last year. The construction industry's job openings plunged to the lowest level since March 2023, according to ABC chief economist Anirban Basu. (Associated Builders & Contractors)
 

Construction company ignored safety standards in deadly hangar collapse, OSHA says
Federal safety investigators cited a construction company on July 29th in the deadly collapse of an Idaho airport hangar, saying it exercised a "blatant disregard" for federal safety standards. OSHA proposed nearly $200,000 in penalties for Big D Builders, KBOI-TV reported. The penalties stem from one willful violation and three serious violations of federal safety regulations. Big D Builders, based in Meridian, Idaho, in an emailed statement said the company had no comment on the report of its findings because of a pending lawsuit filed by the families of two of the construction workers who were killed. Federal inspectors found the company had started building the hangar without sufficient bracing or tensioned wires and that numerous indications that the structure was unstable and bending were ignored. (Finance & Commerce)
 

Industrial construction ramps up at former Deluxe campus
Two entities related to Indianapolis-based Scannell recently completed an internal sale related to the company's makeover of the one-time corporate campus, a multi-phase project that will bring new commercial and industrial space and multi-family housing to the 50-acre site. Scannell broke ground earlier this year on the site at 3660-3680 Victoria Street North, which is just south of Interstate 694 and east of Victoria Street. Deluxe announced plans in 2020 to move on from the site after a decades-long run in Shoreview. Carlisle Fluid Technologies will occupy about 80% of the building, which is on the eastern side of the property. Carlisle manufactures "products and systems for the supply, application and curing of sprayed materials including paints, coatings, powders, mastics and bonding materials," according to its website. Also in the works is a 140,000-square-foot build-to-suit structure for PaR Systems, which is a Pohland-family company, and a 150,000-square-foot building for Fairview Health Services. (Finance & Commerce)
 

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JULY 31

Construction job openings plummet 19%
Construction job openings plummeted by 71,000, or about 19% from May to June, according to the Bureau of Labor Statistics' latest jobs report released on July 30th. The data measures positions for which employers are currently hiring. The 295,000 available jobs on the last day of June marked a 29% decrease from the same month in 2023. In total, 3.5% of all construction jobs went unfilled in June. Experts continue to ascribe recent drops in job openings to slowdowns in residential construction, saying that high interest rates have dragged down home building backlogs, while infrastructure and manufacturing spending continue to anchor commercial work. (Construction Dive)
 

Davis pushes dirt in Lakeville facility
The 14,000-square-foot medical office building project, scheduled for completion in Lakeville within the first quarter of 2025, is for Midwest Ear, Nose and Throat Specialists. Located on a 1.6-acre site at 11020 161st Street West, the new single-tenant facility will compliment Midwest ENT's other locations in the Twin Cities, including specialty centers in Eagan, Woodbury, Vadnais Heights and Hudson. The development team includes Davis, Synergy Architecture Studio, Timco Construction Inc, KOMA, and Loucks. (Finance & Commerce)
 

The Doran Group clears hurdle for senior development in Maple Grove
The proposed development, located at 11751 Arbor Lakes Parkway North, spreads its 124-units across four stories and would be reserved for adults over the age of 55. Though it would be reserved for seniors, it would not provide services to the residents. The project received a recommendation for approval from the Maple Grove Planning Commission at its July 29th meeting. Now the developer --- headed by President Evan Doran --- awaits a final vote at the August 5th meeting of the Maple Grove City Council. (Finance & Commerce)
 

Kraus-Anderson completes projects for Grantsburg schools
The projects, designed by DSGW Architects, include a 26,000-square-foot addition to Grantsburg Elementary. The addition replaced the closed Nelson Elementary School by adding 13 classrooms and a gym, Kraus-Anderson said. Also included in the $14.79-million project are a 34,000-square-foot renovation touching classrooms, restrooms, kitchen, and cafeteria spaces, and an improved bus drop-off area. In addition, Kraus-Anderson completed a 10,000-square-foot addition and a 10,000-square-foot renovation at Grantsburg High School. The project included a new secure entrance, an improved cafeteria / commons area, a new team / flex classroom, and more. (Finance & Commerce)
 

Marsden Services acquires HVAC services company FeldKamp Enterprises
St. Paul-based Marsden Services is expanding its mechanical maintenance division in Ohio with its latest acquisition of FeldKamp Enterprises. Marsden, which offers janitorial, security and other facility services, said that the Ohio company was folded into its subsidiary Marsden Mechanical LLC. Financial terms of the deal were not disclosed. Based in Cincinnati, FeldKamp operates a fabrication plant and specializes in HVAC piping fabrication and service work, among other mechanical and plumbing services for commercial and residential properties. Its subsidiary Metal Craft, which specializes in sheet metal fabrication for decorative hoods in high-end residential properties, will also be joining Marsden. (Minneapolis - St Paul Business Journal)
 

Pourhouse closes in downtown Minneapolis as Hempel plans Lumber Exchange redevelopment
Hempel Real Estate plans to redevelop the historic Lumber Exchange in Minneapolis, a project that could include a residential conversion for at least part of one of downtown's oldest buildings. Some changes are already happening: The Pourhouse nightclub and bar closed last week. Eden Prairie-based Hempel, which took over management of the property earlier this month, announced plans to explore opportunities to reposition the office building, including with a potential residential use. In a statement, the company said, "Hempel plans to honor its historic character while exploring opportunities for a mixed-use development that could include retail, office, and residential spaces." Built in 1885, the 229,211-square-foot office building markets itself as the first skyscraper constructed in Minneapolis. It's located at 10 South Fifth Street. (Minneapolis - St. Paul Business Journal)
 

Richfield may ask voters for big parks and rec investment
On August 14th, the Richfield City Council is expected to approve language for a November 5th ballot initiative asking residents to consider a half-cent sales tax to help pay for a new community center, a new nature center, municipal pool and ice arena improvements, trail upgrades and more. The sales tax would cover about $65-million of the total cost, with an additional $15-million coming from state and federal grants, totaling a proposed $80-million parks and rec investment. Anchoring the city's "Our Legacy, Our Future" plan is a $45-million community center to replace the aging, undersized facility at Augsburg Park. Designed to support more activities for residents, the new community center would offer meeting and gathering spaces, a modern kitchen, gyms and sport courts, an indoor walking track, modern workspaces for staff, and additional areas for "adult, youth and family programming," according to the city. (Finance & Commerce)
 

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AUGUST 1

'Alto Station' Rising: August 2025 eyed as finish date for transit center - apartment complex
The finish line is close for Eau Claire's long-awaiting six-story transit transfer center / apartment complex on the 400 block fo South Farwell Street. If all goes as planned, one year from now not only will Eau Claire Transit passengers be waiting for and boarding buses in new digs, but downtown residents and visitors will also be using two levels of parking while others will be living in the 88 apartments above them. Construction began in June on the residential portion of the development, which ultimately will include 21 studio apartments, 58 one-bedroom apartments, and none two-bedroom units. The two floors below will be for parking, with 81 of the 135 stalls reserved for residents. (The rest will be public parking.) The ground floor will serve as a permanent transfer center for city buses, something Eau Claire has always lacked. (Volume One)
 

Davis starts construction on 14,000-square-foot medical office building in Lakeville
Davis has broken ground on a 14,000-square-foot medical office building development for Midwest Ear, Nose and Throat Specialists at 11020 161st Street West in Lakeville, Minnesota. The new facility, on a 1.6-acre land site, has been designed as a single tenant building. It will complement Midwest ENT's other locations in the Minneapolis / St. Paul area, which include specialty centers in Eagan, Woodbury, Vadnais Heights, and Hudson. The new facility is expected to be completed in the first quarter of 2025. (RE Journals)
 

High interest rates, tight credit conditions stall projects
Nonresidential construction spending ticked down 0.2% in June to a seasonally adjusted annual rate of $1.21-trillion, according to Associated Builders and Contractors' analysis of U.S. Census Bureau data released on August 1st. Spending dropped in almost half of nonresidential subcategories in June. Both public and private spending fell 0.4% and 0.1%, respectively. That decrease stems from higher interest rates, tighter credit conditions and a softening economy, said Anirban Basu, ABC chief economist, in the release. Despite the recent spending tick down, many contractors remain upbeat and expect revenue growth over the next six months, according to ABC. However, with interest rates still elevated, Basu said "many projects are being put on hold, limiting construction starts, suppressing backlog and perhaps eventually eroding current contractor confidence." (Construction Dive)
 

GrandStay Hotel, Marriott and upscale dining slated for Monticello
Monticello, on the northwest edge of the Twin Cities, has a hotel shortage --- and two developments are moving ahead to fill the gap. The Broadway Plaza development includes a 78-key GrandStay Hotel, a 10,000-square-foot event and conference center, a 5,000-square-foot upscale restaurant and a museum just off Interstate-94. That proposal is moving throughout the same time as another proposed for a 98-room Marriott Fairfield Inn with a 130-seat restaurant slated for a mixed-use district in town. The Hospitality Consulting Group completed a study last September finding that lodging demand in the area often pushes people to nearby Albertville, Rogers or Maple Grove, and that several local events have outgrown Monticello's meeting space capacity for conferences. (Minneapolis - St Paul Business Journal)
 

MAC begins Terminal 2 work, has plan for speedier Terminal 1 upgrades
More than half a billion dollars' worth of work at the Minneapolis-St. Paul International Airport is just taking flight or heading for a possible early landing. Specifically, a $263-million expansion of Terminal 2 at the airport is officially underway, a project that comes at a time when the Metropolitan Airports Commission and Delta Air lines are looking to get a head start on the third and final phase of a $242-million, multi-year gate and concourse improvement at Terminal 1. The MAC said that it has started construction on a 168,000-square-foot Terminal 2 north expansion. The project will bring two additional airline gates and more passenger seating to the northern-most gates at the terminal, along with new restrooms, concession spaces, and support areas for airlines and tenants, according to MAC. (Finance & Commerce)
 

New indoor cricket facility proposed for Bloomington
Sanjaya Ranasinghe is looking to bring an indoor youth cricket training facility to Bloomington in an effort to grow the game he has played all of his life. While there are about 10 cricket pitches in the metro area, Ranasinghe noted there is a shortage of spaces dedicated specifically to youth training. According to Bloomington city planning documents, the facility would occupy 7,940-square-feet of a 153,265-square-foot office / warehouse building at 10701 Hampshire Avenue South. The city has approved one conditional use permit for the facility, but there are still multiple other steps that need to be completed before opening. If all goes right, Ranasinghe said, he hopes to open the Bloomington facility this fall. (Minneapolis - St. Paul Business Journal)
 

Rare rental development considered in Hugo
A townhome development that would bring 60-units spread across five buildings was proposed at the July 25th meeting of the Hugo Planning Commission and will face deliberation and final approval at the August 5th meeting of the Hugo City Council. The project is a rare rental and multi-family project to hit the north Washington County city. The Shores of Oneka Lake is a neighborhood development by Fenway Land Co. that was approved in May 2022, according to planning documents, with 219-units that consist of single-family homes, villa homes and twin homes. Should the City Council approve the development, named Oneka Fields, it will bring the total number of residential units in the area up to 279-units. Fenway plans to start construction on Oneka Fields this fall and be finished in 2025. (Finance & Commerce)
 

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AUGUST 2

Housing conversion of former Ecolab tower in downtown St. Paul begins
Construction on a $60-million project to convert the former Ecolab University Center tower in downtown St. Paul into apartments is now underway. The developer on the project, Bloomington-based Kaeding Development Group, recently received a building permit to start the conversion of the 17-story vacant office building into 178 market-rate units, according to President and Founder Carl Kaeding. A joint venture between Oak Brook, Illinois-based Inland Real Estate Group of Cos. and Kaeding Development Group purchased the site, located at 386 Wabasha Street North, for $17.87-million in 2022. The project is called Stella. Some of the conversion work already started on floors 3-5 with the former developer. Kaeding Development Group will soon finish up those floors and begin framing work on the sixth floor, Kaeding said. (Minneapolis - St. Paul Business Journal)
 

MATC trade students get support from Metallica
Milwaukee Area Technical College will again participate in an initiative set up by heavy metal band Metallica to support education for careers such as automotive and diesel, CNC machining, HVAC, trucking and welding. This is the third year in a row MATC has participated in the Metallica Scholars Initiative, an effort led by the band and the American Association of Community Colleges to support workforce development courses in colleges across the nation. The initiative started in 2019 and now reaches 60 colleges across the county and the territory of Guam. MATC was picked in July 2022 to receive $100,000 from Metallica's foundation, All Within My Hands, tech college officials said. (Finance & Commerce)
 

Toastique to enter Minnesota with Wayzata location
Scott and Laura Seabloom, a husband-and-wife team, signed a three-unit deal in October to bring Toastique, a gourmet toast and juice bar, to the Twin Cities, and a Wayzata location is expected this fall at 320 Engel Street, just off the main stretch of Lake Street East. When it opens, it will eb the first Toastique in Minnesota. (Minneapolis - St. Paul Business Journal)