Welcome back to Building Buzz, your roundup of the latest developments shaping our built environment.

From affordable housing projects popping up in Cottage Grove and St. Cloud to a potential shake-up for a major mixed-use site in Cottage Grove, there's a lot happening across the region. Developers are reacting to new state utility line regulations, pickleball facilities are expanding in Lakeville, and environmental concerns take center stage in Wisconsin.

We’re also tracking a range of infrastructure updates, legal disputes, and a big boost to industrial real estate in the Midwest. Whether you're focused on housing, highway work, or high temps on the jobsite, there's something in here for you.

Dive in below and stay in the know on what’s next in construction across our region.
 

JUNE 23

Cottage Grove Approves $55M Affordable Housing Project to Address Rental Shortage
Affordable Housing  |  Athletic Facility  |  Multi-Family  |  Playground
Last week, Cottage Grove approved a plan by developer Real Estate Equities to construct a $55-milklion affordable apartment project --- as well as some local funding to help get it built. The 164-unit building, which would be located at 10015 Hamlet Avenue, is aimed at easing a tight market for affordable housing in the east-metro suburb. The plan for the four-story building includes 35 one-bedroom units at 663-square-feet each; 86 two-bedroom units at 939- to 1,149-square-feet each; and 43 three-bedroom units at 1,326- to 1,359-square-feet each. Each unit will have granite countertops, vinyl plank flooring, stainless steel appliances, and in-unit laundry. An outdoor recreational space, a playground, a dog run, clubhouse, a fitness center, and a clubroom with connected outdoor patio are planned for the property. The building will be 242,116-square-feet in total. (Minneapolis - St. Paul Business Journal)
 

Minnesota Becomes the Latest State to Require Developers to Pay the Cost of Relocating Utility Lines
Legal Matters - Developer Litigation  |  Relocation Costs  |  Utility Lines
If you have ever viewed a property survey, you know just how detailed and technical they can be. This is particularly true in urban and suburban areas, where years of development have resulted in parcels being chopped, divided, combined, and rearranged any number of times. The properties will often be crisscrossed with water, electrical, and communication lines and dotted with boxes, vaults, meters, hydrants, and other pieces of equipment, usually placed in the public right-of-way lining adjacent streets and highways. Whenever a developer seeks to build on a property, or a municipality seeks to expand or move a road, these utility lines and equipment must often be relocated. This can be an expensive process, adding hundreds of thousands, if not millions, of dollars to construction budgets. (Finance & Commerce)
 

Wayzata Fights Back Against Lawsuit Over TCF Site Redevelopment, Seeks Dismissal
In Development - Redevelopment Dispute
The city of Wayzata is pushing back against a lawsuit filed last month over plans to redevelop the former TCF Financial Corp. headquarters in the city's downtown. According to a May lawsuit, the city improperly imposed conditions when it approved plans by Lake West Development to build a three-story, 99,000-square-foot building at 200 Lake Street East, and that the city unjustly denied plans for a different, four-story design for the building. In its filing, Wayzata denied the allegations and maintained its decisions were lawful in all respects. It is asking the court to dismiss the lawsuit, saying it lacked a valid legal claim. The city approved plans for a three-story redevelopment proposal on May 6th, but required the building to have a pedestrian walkway through the property that extends through all floors, effectively splitting it into two separate buildings. Lake West argued the mandate was unlawful because it is not included in the city's code. (Minneapolis - St. Paul Business Journal)
 

JUNE 24

Affordable Senior Housing Planned in St. Cloud
Affordable Housing  |  Community & Assisted Living  |  Parking Structure  |  Storage
The Central Minnesota Housing Partnership (CMHP) wants to build a 58-unit affordable senior housing project on city-owned property at 1618 Pinecone Road. The nonprofit developer has an agreement to buy the site from the St. Cloud HRA for $1. Construction could begin in 2026 or 2027, but that timeline hinges on a successful funding application. The project will be presented to the Minnesota Housing Finance Agency for funding consideration on July 10th, with a decision expected in December. To make the project more competitive for funding, the CMHP is adding amenities that "make the project beneficial to the tenants that live there," while offering affordability levels ranging from 30% of the area's median income to 60% AMI. Amenities include attached garages, designated storage facilities, in-unit washers and dryers, community rooms, and controlled entrances. (Finance & Commerce)
 

Wisconsin Supreme Court Backs PFAS Pollution Cleanup
Environmental Awareness - Contamination Clean-Up  |  "Forever Chemicals"  |  Hazardous Substances  |  PFAS
The Wisconsin Supreme Court delivered a victory for environmentalists in the fight over "forever chemicals" known as PFAS, issuing a ruling that advocates said will hold polluters accountable. The court rules that state regulators can force landowners to clean up emerging pollutants such as PFAS before they are officially designated as hazardous substances. The Wisconsin Supreme Court rules in a case brought by the state's largest business group, Wisconsin Manufacturers & Commerce, which sued the DNR in 2021 on behalf of Leather Rich, a dry cleaning business in Oconomowoc. Leather Rich became aware of PFAS contamination in 2018 and was working on cleaning it up when the DNR posted a message online in 2019 saying it now considered PFAS chemicals a hazardous substance. The agency ordered the dry cleaner to test its groundwater for PFAS but didn't tell the business which compounds it needed to test for or what levels it would be considered dangerous. They argued the DNR can't force business to test and clean up contamination from emerging pollutants like PFAS without first designating them as hazardous substances. (Finance & Commerce)
 

JUNE 25

67-Unit Infill Project Planned in Mendota Heights
Multi-Family
Condor Corporation recently submitted a "concept plan" to the city of Mendota Heights for a new four-story, 67-unit apartment building project on the northwest side of the Lexington Heights complex, which is at 2320 Lexington Avenue. The existing residential complex includes three buildings with a combined 225-units. The new building would occupy an underused part of the campus between a parking lot and Interstate 35E. The expansion, which requires an amendment to the "planned unit development" approved in 1983, would increase the density at the site from 13.9-units per acre to 18.1 per acre. Plans submitted to the city show 23 one-bedroom (663-squre-feet), 23 one-bedroom-plus-den (884-square-feet), and 21 two-bedroom units (up to 1,037-square-feet). A project narrative reveals that the applicant plans to increase the one-bedroom size units to 700-square-feet. (Finance & Commerce)
 

Greater Minnesota Water Projects Will Flow From Legislature's Bonding Package
Public Infrastructure  |  Wastewater  |  Water Treatment
Three-hundred miles separate Appleton from Aurora, but big water infrastructure needs contrasted against limited tax bases put them in the same boat among Greater Minnesota communities. Appleton, in the western part of the state, has about 1,400 people. Far to the northeast, Aurora's population is slightly higher at around 1,700. They share similar median household incomes in the $40,000 range. When cities are working with those numbers, building a new treatment plant for drinking or wastewater becomes a pipe dream without outside assistance. That's where state and federal funding comes in. Minnesota's Water Infrastructure Fund (WIF) is a critical source of help for the two cities, plus dozens of others farther down the alphabetical order on the state's project priority lists. The program's funding will keep flowing, mostly to Greater Minnesota, after legislators allocated $87-million during a special session completed earlier this month. (MinnPost)
 

Heat Safety Top Priority for Construction Crews
Jobsite Safety - Heat Safety  |  OSHA  |  Water, Rest & Shade
Last weekend in Wisconsin and Minnesota saw heat indexes in the high 90s and low 100s with heavy humidity. Following the warmest weekend so far, construction safety experts offered some tips for dealing with heat on a job site. While there's no standard heat rule right now, OSHA's "Water, Rest and Shade" campaign has set a working example for employers. According to OSHA guidelines, workers who return from an extended absence should start their first day working around 20% at full intensity in the heat and build up another 20% each day to get acclimated. Those workers should hydrate often and drink at least one cup of water or similar hydration every 20 minutes, especially when the heat is in the 90s. Different job sites call for different solutions for break and shade areas. If a construction site is at grading or excavation stages, workers might want to seek out a tent or a job trailer to take cover from the sun, for example. (Finance & Commerce)
 

Hempel, TPG Angelo Gordon Launch $300M Industrial Joint Venture Targeting Midwest Growth
Industrial  |  Parking Structure 
Hempel Real Estate has teamed up with an out-of-state investment firm to deploy $300-million to build and acquire industrial properties in the Midwest over the next five years. The commercial real estate firm has formed a joint venture with TPG Angelo Gordon, a diversified credit and real estate investment platform of TPG Inc. The joint venture's first use of the capital is in the Brockton Business Park, which Hempel is developing in Corcoran. The company has broken ground on the first phase of the project, which includes a 286,120-square-foot industrial building. The site includes trailer and car parking, direct access to County Road 101 and proximity to Interstate 94. Completion of the shell of the building is slated for the second quarter of 2026. Hempel also plans to pursue a second phase with 252,120-square-feet of industrial space. (Minneapolis - St. Paul Business Journal)
 

Lunda Construction Wins $101.2M Minnesota Highway Project
Bridges  |  Roadwork
Lunda Construction will break the pavements on two Minnesota highways. Lunda was awarded a $34-million project to work on Highway 169 in Jordan, Minn., according to Tutor Perini, Lunda's parent company. In early June, the company won a $67.2-million bid from the Minnesota Department of Transportation to work on the Interstates 94 and 394 interchange in Minneapolis. Lunda will build four bridges and 14 cast-in-place retaining walls along Highway 169, Tutor Perini officials said. Crews will also build 34 bridges and ramps along I-394 and I-94 between downtown Minneapolis and Highway 100, officials said. The project also calls for maintenance work on the Dunwoody Boulevard ramp and replacing the deck for the Penn Avenue Bridge that crosses over I-394 and other improvements along I-394 between downtown Minneapolis and Highway 100, officials added. Work on I-94 and I-394 is expected to begin in July and substantial completion is expected in Summer 2027. (The Daily Reporter)
 

JUNE 26

Cottage Grove Mixed-Use Project Faces Uncertainty as Developer May Exit
Commercial & Retail  |  Mixed-Use  |  Multi-Family  |  Recreation & Entertainment  |  Residential  |  Restaurant
A major commercial project in Cottage Grove may soon need a new developer. The city has been working to redevelop a 74-acre site along Highway 61 since 2012, when a drive-in theater shut down. The proposed mixed-use project, the Shoppes at Cottage View, is one of the largest of its kind in Cottage Grove, with a concept plan including more than 473,000-square-feet of residential, retail, and entertainment space. However, the company with a development option for the site, River Caddis Development, has not submitted development plans, a city administrator said. And city officials are skeptical they'll see anything from River Caddis before its option expires at the end of the year, though they're optimistic another developer will be found to take over, according to a third-party report commissioned by the city. Current concept plans calls for six retail and entertainment businesses, four mixed-use buildings, two restaurants, four apartment buildings, and 48 townhomes. Those plans could change if a new developer steps in. (Minneapolis - St. Paul Business Journal)
 

Pickle in the Middle Proposes 24/7 Pickleball Facility in Lakeville
Athletic Facility  |  Facility  |  Security Systems
The pickleball courts operator, which has locations in Brooklyn Park and Lake Elmo, seeks to open a 42,000-square-foot indoor facility within a larger industrial building under construction at 21300 Juniper way. This could the Pickle in the Middle's third location. The facility would be open 24-hours per day, seven days per week, similar to their other locations. Guests would need to enter a code to access the facility according to city documents. It would be monitored by security cameras and a facility manager who would visit the site daily at various times. The facility would have 15 pickleball courts, storage lockers, a lobby and a meeting room. No food or beverage options will be available on-site. Pickle in the Middle is seeking a conditional use permit for the facility. If approved, the company expects to open the facility in Winter 2026. The company is working with Lampert Architects on the project. (Minneapolis - St. Paul Business Journal)
 

JUNE 27

Crystal Halts Development in Town Center to Craft 25-Year Vision for Suburban Downtown
Development Opportunities
Crystal City Council is blocking new developments in its main commercial district as it drafts a vision for the area. Crystal's Town Center, a 220-acre area around Bass Lake Road and West Broadway Avenue, has been heating up with investor interest --- but a moratorium will block any new development for the next year while city leaders create a strategic plan for the neighborhood. The vision is expected to be completed by the end of the year and set the stage for the area's next 25 years, essentially creating a downtown for the inner-ring suburb. Crystal Town Center is a classic postwar retail area with strip malls and large parking lots. It has a mix of uses, including retail, light industrial, residential and the recently revamped 12-acre Becker Park. (Minneapolis - St. Paul Business Journal)
 

Developer Plans 54-Unit Affordable Apartment Project for Minneapolis' East Lake Street
Affordable Housing  |  Mixed-Use  |  Multi-Family  |  Parking Structure
A new mixed-use development on East Lake Street in Minneapolis with 54 affordable apartments and commercial space is one step closer to construction. LUL Bros Properties plans to build an 8-story building that will include 4,444-square-feet of commercial space. The property is in the Midtown Phillips neighborhood, at 1200 and 1204 Lake Street East. That location is across the street from another apartment project LUL Bros. intends to build. The city's Business, Housing & Zoning Commission voted to the support the project last week. The 54 affordable apartments will be made up of 6 studio units; 6 one-bedroom units; 36 two-bedrooms units; and 6 three-bedroom units. LUL Bros plans to construct 21 underground parking spaces as well. The project is expected to go before the Minneapolis City Council next month when affordability levels for the building are expected to be established. (Minneapolis - St. Paul Business Journal)
 

How the 'Big Beautiful Bill' Could Impact Affordable Housing Construction
Government Affairs - Affordable Housing  |  Low-Income Housing Tax Credit  |  One Big Beautiful Bill Act
The Trump administration's sprawling tax and spending bill, the One Big Beautiful Bill Act, could have major impacts on affordable housing. The legislation would expand the Low-Income Housing Tax Credit program, considered the primary funding mechanism for affordable housing construction in the U.S. It would also extend and make key reforms to opportunity zones, a federal tool that provides tax benefits to developers that invest in distressed, low-income areas of the country. Analysis from accounting firm Novogradac & Co. estimates the low-income housing tax credit provisions in the House's version of the bill, which passed last month, could produce 500,000 additional housing units over the next decade. Another version, introduced by the Senate Finance Committee earlier this month, includes low-income housing tax credit provisions that could produce more than 1-million affordable rental units during that time. (Smart Cities Dive)