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:
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)
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)
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)
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)