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From projects in development and under construction, economic outlooks for 2024, and new federal rulings on independent contractor classifications, here's what was buzzing in the building world from the week of January 8-12, 2024:

Construction outlook for 2024 a mixed bag as contractors struggle to attract, retain labor
Labor has been consistently cited as a top challenge for general contractors, an issue that long predates the Covid-19 pandemic. The construction industry added 17,000 net jobs in December, part of what was a stronger-than-expected jobs report released late last week by the U.S. Bureau of Labor Statistics. Between December 2022 and December 2023, industry employment grew 2.5%, to 197,000 new jobs, according to an analysis of BLS data by industry trade group the Associated Builders and Contractors. Still, the unemployment rate in construction continues to outpace the national unemployment rate, at 4.4% in December compared to 3.7%. (1-8-2024  |  Minneapolis-St. Paul Business Journal)
 

Labor crunch will continue to squeeze contractors
Nearly 8 out of 10 respondents to a new Associated General Contractors of America survey said they have a hard time filling salaried or hourly craftworker positions, but 69% still said they anticipate a "total increase" in headcount. A fifth of respondents said it will get harder to hire in 2024. Nonetheless, contractors will need those workers. In 14 of 17 sectors, respondents anticipated the dollar value of project they compete for to increase this year compared to 2023. (1-8-2024  |  Construction Dive)
 

Plan for 255 new homes advances in Lakeville
TEG Land Holdings LLC, an entity related to Twin Cities Land Development, wants to develop 255 new homes, including 127 attached townhome lots, 99 detached "villa" lots, and 29 single-family home lots, on a site north of 205th Street and west of Interstate 35. The Lakeville Planning Commission unanimously recommended approval of a revised preliminary plat for the development, known as Ritter Meadows. The plans will be up for review at the January 16th City Council meeting. (1-8-2024  |  Finance & Commerce)
 

Costco plans a store in Ostego along I-94
Costco Wholesale Corp. wants to build a store on a vacant property on the edge of Albertville and Ostego near Interstate 94. The retailer submitted a development application to the city of Ostego, according to City Administrator Adam Flaherty. City Planner D. Daniel Licht said the application will be tentatively considered at the February 5th Planning Commission meeting. The site is north of 60th Street Northeast between Interstate 94 and Maciver Avenue North. The development application shows the building will be about 164,000-square-feet and includes a parking lot with 938 stalls. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

LGBTQ+ workers expect more inclusivity from employers
Every year, more and more companies seem to recognize Pride Month. But a recent analysis shows that LGBTQ+ workers expect more than this once-a-year acknowledgement from their employers. In fact, some employees actually criticize such behavior as mere pinkwashing. So, what do LGBTQ+ workers want? In 2023, the jobs website Indeed conducted a survey of LGBTQ+ full-time workers from across the U.S., and the results provide a clear picture of their needs. (1-9-2024  |  Finance & Commerce and The Conversation website)
 

Met Council hikes Southwest Light Rail budget to $2.86B
Officials leading the Southwest Light Rail project said that the cost to build a 14-mile train link between downtown Minneapolis and Eden Prairie has risen to $2.86-billion. The rail line's price tag has steadily increased over the years as its timeline has stretched out. What was once pitched as a $1.3-billion project, to be completed by 2018, is now expected to take until 2027. The ballooning budget has drawn scrutiny from legislators and auditors. A report last year criticized the Council for not holding contractors accountable for overruns. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

Minneapolis called a model for housing development
Other cities take heed of Mineapolos and its zoning regulations. At least that's what researchers at the Pew Charitable Trust are saying in a report published last week. The report by the nonprofit's housing team says Minneapolis' zoning code adjustments have helped it better tackle housing issues while other major U.S. cities have fallen behind. (1-9-2024  |  Finance & Commerce)
 

New federal rule on independent contractors could trigger wave of lawsuits against businesses
Companies will potentially have a harder time classifying millions of workers as independent contractors under a new Department of Labor final rule. The new rule expands the so-called "economic reality" test so that employers have to weigh a wider variety of factors when classifying workers, including how much control the worker has over their schedule and their employment, how permanent their employment is, and how integral their work is to the work of the company, among the six factors employees must consider. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

New labor rule tightens worker classification standards
The Biden administation entacted a new labor rule that aims to prevent the misclassification of workers as "independent contractors," a step that could bolster both legal protections and compensation for millions in the U.S. workforce. The Labor Department rule, which the administration proposed 15 months ago, replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors. Such workers neither receive federal minimum wage protections nor qualify for employee benefits, such as health coverage and paid sick days. (1-9-2024  |  Finance & Commerce)
 

Construction planning numbers end 2023 on a high note
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, closed out the year with a 3% jump in December, buoyed by data center growth, according to the Dodge Construction Network. Over the month, both commercial and institutional planning improved 1.0% and 6.1% respectively. The gain reversed the 1.4% drop in November, when a slowdown in commercial planning pushed the index down, accroding to Dodge. That indicates support for construction activity this year, said Sarah Martin, associate director of forecasting for Dodge Construction Network. (1-10-2024  |  Construction Dive)
 

Duluth hotel development site sold in $2.7M deal
In a deal worth more than $2.7-million, Kinseth Hospitality Cos. has sold land in Duluth to D & D Real Estate Holdings, according to public documents. According to the documents from the Duluth Planning Commission, the land is for a four-story, 100-room TownPlace Suites by Marriott on Sundby Road north of West Page Street. The tract of land that has been traded is one that's been highly contested throughout the years. Neighbors and environmentalists are worried about the harm the development may cause to a creek near the land. The Duluth Planning Commission opted to require an Environmental Assessment Worksheet, or EAW, for the property. (1-10-2024  |  Finance & Commerce)
 

Eagle Brook gets green light for megachurch in Plymouth
After a divided vote from the Plymouth City Council, Eagle Brook has a clear path forward to construct a 64,000-square-foot church on a 53-acre site at 17910 Chankahda Trail. The megachurch threatened to sue the city if the council rejected the plans. The Council's 3-3 vote on a resolution opposing the project means the project can advance. Residents opposed to the project cite concerns about traffic, the size and scale of the building, and more. City staff recommended denial of the church's request for rezoning, preliminary plat, site plan, and other approvals. (1-10-2024  |  Finance & Commerce)
 

New Northtown owner plans more improvements at Blaine shopping mall
Felix Reznick, principal at 4th Dimension Properties, is adding an Imagination Station play area for children to the former D'Moxi space across from the food hall. The Imagination Station has a climbing area and other topys to keep kids busy. It doesn't pull a profit but could help attract more shoppers.  (1-10-2024  |  Minneapols-St.Paul Business Journal)
 

New St. Cloud mall owner: 'The dinosauers are dying'
The new owner of the 1980s-vintage Midtown Square mall in St. Cloud has big plans to turn the half-empty retail center into a multipurpose hub for everything from indoor sports to flex light industrial uses. An entity related to Brait Capital of Edina paid $8-million for the mall property at 3333 Division Street West, according to a certificate of real estate value made public. Lighthouse Management Group Inc. of St. Cloud is the seller. (1-10-2024  |  Finance & Commerce)
 

Biden awards $623M to states, tribes to build EV charging network
The Biden administration is awarding $623-million in grants to help build an electric vehicle charging network across the nation. Grants will fund 47 EV charging stations and related projects in 22 states and Puerto Rico, including 7,500 EV charging ports, officials said. Congress approved $7.5-billion in the 2021 infrastructure law to meet President Biden's goal of building out a national network of 500,000 publicly available chargers by 2030. The charging ports are a key part of Biden's efforts to encourage drivers to move away from gasoline-powered cars and trucks that contribute to global warming. (1-11-2024  |  Finance & Commerce)
 

Downtown Rochester luxury apartment fetches $37M
A luxury apartment building in downtown Rochester has a new owner in Northland Investment Corp., according to public documents. The Maven on Broadway, a six-story, 154-unit multifamily complex was purchased by the Newton, Massachusetts-based firm for $37.7-million. The seller is another Massachusetts group, Berkshire Resiential Investments, which is based in Boston. (1-11-2024  |  Finance & Commerce)
 

Milwaukee could finally take control of and redevelop Northridge Mall
The city of Milwaukee could take control of the abandoned Northridge Mall by the end of January and demolish the building in the summer. If the city acquires the vacant property through foreclosure, it would be an end to years-long litigation between the city and mall owner U.S. Black Spruce Enterprises. After the city issued a raze order in 2019, the mall has been the subject of city and state court cases, and incidents of both trespassing and arson. (1-11-2024  |  Finance & Commerce)
 

Lawsuit between Doran Special Projects, St. Paul apartment complex ends
A lawsuit between Bloomington-based developer Doran Special Projects LLC and Marshall Lofts LLC, the Hopkins-based business behind a St. Paul apartment complex, is over. Court records show that Doran moved to dismiss the lawsuit on December 12, 2023, after the case was referred to mediation on August 7, 2023. Doran first filed the lawsuit in June alleging Marshall Lofts never paid Doran for $812,798 worth of contracting work done at 2105 Marshall Avenue and 250 Finn Street in St. Paul. Those addresses are the locations of an apartment complex, also called Marshall Lofts, as well as an adjacent residential rental building called The Finn.  (1-12-2024  |  Minneapolis-St Paul Business Journal)