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:
 


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)
 


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)
 


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)
 


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)
 


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)
 

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