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

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

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

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

JANUARY 2

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

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

JANUARY 3

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

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

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

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

JANUARY 6

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

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

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

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

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

JANUARY 7

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

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

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

JANUARY 8

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

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

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

JANUARY 9

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

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

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

JANUARY 10

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

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