We're reading the headlines so you don't have to.
From the Dodge Momentum Index rising in August to Rosemount's proposed sustainable aviation fuel facility and Embassy Suites in Bloomington plans for an upcoming $9-million upgrade to the U W-Madison's $75-million gift for an engineering center, here's what was buzzing in the building world the week of September 9-13, 2024:
SEPTEMBER 9
Construction industry adds 34,000 jobs in August
The construction industry added 34,000 jobs in August and the sector unemployment rate fell to its lowest this month. That's according to a report by the Associated General Contractors drawing from government data. The construction unemployment rate fell to 3.2%, which is the lowest rate in August since the association tracked data 25 year ago. Despite the historical data, AGC officials said more firms would have hired workers if they could find qualified people. There were 8.28-million people working in construction in August, data showed. That was an increase of 34,000 from July, and the sector added 228,000 jobs (or 2.8%) during the past 12 months. It's nearly double the 1.5% increase for total nonfarm employment. (Finance & Commerce)
Denver developer proposes major data center project in Farmington
Tract, a prolific Denver-based data center developer, wants to bring roughly 2.5-million-square-feet of cloud infrastructure to a Farmington site that includes the Fountain Valley Golf Course and existing school district property. Site plans for the proposed Farmington Technology Park show up to 12 data center buildings and two administrative buildings on a 342-acress site south of 220th Street and east of Chippendale Avenue. Included in the plans are 1.6-million-square-feet of data center space on a "northern campus" and 933,800-square-feet on a "southern campus," according to a city staff report. The Farmington Planning Commission will review preliminary plat, planned unit development and rezoning requests from the developer. (Finance & Commerce)
Dodge Momentum Index rises 3% in August
Commercial planning saw another month of broad-based improvements. After slowing down in recent years, warehouse projects have gained momentum over the last three months. Hotels and retail planning have been steadily expanding as well. Data centers continued to dominate large project activity, but the rate at which planning projects entered the queue in August moderated after several months of very strong growth. On the institutional side, healthcare was the primary driver of the past month's expansion, followed by recreational planning. In August, the DMI was 31% higher than in August of 2023. The commercial segment was up 42% from year-ago levels, while the institutional segment was up 8% over the same period. (Dodge Construction Network)
Edina considers affordable town homes, apartments at fire station site
Affordable town homes and apartments --- or a mix of the two --- are among the possible uses for land adjacent to Edina's new Fire Station 2. The 8-acre site is located at 4401 West 76th Street, which the city of Edina bought for over $15-million in 2022. So far, the city has completed utilities and foundation work on the new station, with walls now going up, according to city of Edina spokesperson Jennifer Bennerotte. One concept envisions five sets of four-unit, two-story townhomes, which would be owner-occupied, while another imagines a four-story apartment building with up to 50 units and three sets of four-unit, two-story townhomes. The last option suggests the densest concept, with two apartment buildings on the site, according to the city's September newsletter. Edina Housing Foundation hired architecture firm LHB Inc., which is based in Duluth but has a Minneapolis office, to create the concepts. (Minneapolis - St. Paul Business Journal)
SEPTEMBER 10
Artspace begins Northrup King Building arts complex redevelopment
The plan by Artspace Projects Inc., a Minneapolis-based nonprofit developer of space for artists, includes remodeling two vacant buildings on the property, located at 1500 Northeast Jackson Street, for 84 housing units. The developer has plans to add over 8,100-square-feet of future art gallery-exhibit space at another nearby building. The project's general contractor, St. Louis Park-based Watson-Forsberg Co., secured a permit to begin the remodeling work late last month. The permit, issued August 26th, shows construction work valued at $39.5-million. (Minneapolis - St. Paul Business Journal)
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of August 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted August 20 - September 5. The reading is down 1.0 months from August 2023. Only the infrastructure category experienced a monthly increase in backlog among the three major segments, reflecting strength in public construction spending. Nonetheless, over the past year, backlog has declined in all three segments. ABC's Construction Confidence Index readings for sales, profit margins, and staff levels fell in August as well. (Building Design + Construction)
Data center developer Tract eyes Farmington golf course
A Colorado builder of data centers wants to redevelop a 342-acre site in Farmington into a tech campus that could include more than a dozen buildings and 2.5-million-squar3e-feet of data center space. Finance & Commerce reports on the propose from Denver-based Tract, which will take a preliminary plat and rezoning plan for the Farmington Technology Park before the city's Planning Commission on September 10th. The site currently consists of the Foundation Valley Golf Course and land owned by Independent School District 192. Tract, which already has the properties under contract, according to a city staff report, wants to rezone the parcels as mixed-use commercial / industrial, which would allow the construction of data centers. (Minneapolis - St. Paul Business Journal)
Delta Air Lines, Koch subsidiary to build sustainable aviation fuel facility in Rosemount
The facility is anticipated to be operational in 2025 and will be the fist of its kind in the Midwest. The new facility is expected to produce around 60-million-gallons of blended sustainable aviation fuel (SAF), which will be made up of 50% SAF and 50% conventional jet fuel. The blended fuel will then be delivered to the Minneapolis-St. Paul International Airport via Flint Hill's existing pipeline. The design and scope of the facility is still being finalized, but it will be fully integrated and largely indistinguishable from the current refinery, which is located 17-miles southeast of Minneapolis and spans more than 350-acres, making it the state's largest refinery. (Minneapolis - St. Paul Business Journal)
St. Paul multi-family construction dives
Builders aren't building in St. Paul this year, and the city is seeing its slowest residential construction outlook in more than a decade. The Pioneer Press reports that building permits for new multi-family buildings in St. Paul accounted for just 140 housing units in the first six months of 2024, compared to more than 1,000 for the same period a year ago. At this rate, total construction for multi-famly housing could be at 2010-2011 levels, when the market was still recovering from the housing crisis and Great Recession. (Minneapolis - St. Paul Business Journal)
SEPTEMBER 11
Committee tables recovery facility after opposition
The permit for a 24-bed temporary, supportive care facility proposed at the northeast corner of the intersection of Colfax Avenue South and Lake Street was tabled until the next meeting of the Business, Housing and Zoning Committee on September 24th. The applicant, Lakeshore Care Inc., put forward an interim use permit, which would allow the facility to run at the location for five years, and was recommended for approval by the city staff. Opposition to the facility by neighboring businesses and residents mounted to the point where Ward 3 Council Member Michael Rainville moved to table the permit and encouraged the operators to meet with the neighbors. (Finance & Commerce)
Dane County Jail construction underway, opting for smaller facility
The Dane County Sheriff's Office in March broke ground on the South Tower project, which aims to replace the outdated cell blocks at the Dane County City-County Building Jail. The consolidation project will reduce the number of beds and solitary confinement space and expand medical and mental health spaces. The new structure is being built over a surface parking lot between West Doly Street and West Wilson Street in Madison. The overall project, which includes new construction and renovations, will be completed in May 2027. The $207-million project has been in planning since at least 2014. (Finance & Commerce)
Fridley seeks developer for rare infill site with platting, soil issues
Fridley's Housing and Redevelopment Authority wants a developer to build slab-on-grade homes on the 5.2-acre city-owned site at the southeast quadrant of Mississippi Street and Central Avenue. A "request for qaulifications" is expected to hit the streets on September 23rd and construction could start as soon as next spring. A city staff report reveals that market conditions and a high water table make the site ideal for slab-on-grade products, which as also known as "villa homes, cottages, and patio homes." The site could accommodate 20 or more homes. (Finance & Commerce)
Minneapolis City Council members propose grant to rehab shelter
Agate Housing and Services, a nonprofit shelter that was expected to close permanently may have the chance to be rehabilitated, after three Minneapolis City Council members proposed that a $1.5-million grant be given to the shelter. In a press release, Agate Executive Director Kyle Hanson said the grant means Agate may be able to reopen the shelter if it can secure the other $1.5-million required for the critical repairs to the property before the end of the year. Repairs would require a six- to 12-month timeline. (Finance & Commerce)
SEPTEMBER 12
Embassy Suites in Bloomington gets new management for $9M upgrade
Hilton's Embassy Suites in Bloomington has gone under new management right before it undertakes a large renovation. Hospitality Ventures Management Group will now oversee the 232-suite hotel at 2800 American Boulevard West, the Atlanta-based hotel operator and investor. Hospitality Ventures plans to direct a six-month renovation of the hotel that will cost around $9-million. Upgrades include guest rooms, public spaces, the Iron Rnage Restaurant & Bar, and back-of-house areas. (Minneapolis - St. Paul Business Journal)
Knutson says racial 'discrepancies' found on government forms
Knutson Construction says it has discovered 'discrepensies' in employee demographic information reported by the company, an acknowledgement that follows allegations from current and former employees that the company pressured workers to mispresent their race on government recordkeeping forms. In a recent letter to an unidentified client, a Knutson project manager said an investigation has "confirmed a discrepancy in demographic data" limited to a former employee and three current employees. Current employees, the letter states, have "been given the opportunity to update their voluntary EEO-1 [Equal Employment Opportunity] information." At least four other Knutson workers --- all of whom are white --- were misclassified as Asian or Hispanic while working for Knutson on university projects. (Finance & Commerce)
SEPTEMBER 13
St. Paul school among those investing in ground source heat pumps
When students would come to the nurse's office at Johnson Senior High School in St. Paul, Minnesota, complaining of headaches and feeling too hot, Rebecca Randall was always ready. She would hand out water bottles, apply ice packs and ask the students to remove their hoodies and extra layers. Even the nurse's office didn't guarantee a refuge for students, sometimes reaching 85-degrees Fahrenheit. But that was then./ Last fall the school installed a heat pump cooling system, a type that makes use of the cooler temperatures underground. Now the school is no longer counted among the roughly 36,000 in the U,.S. that the Government Accountability Office said need their heating and cooling systems updated. (Finance & Commerce)
UW-Madison gets $75M gift for engineering center
Two brothers donated $75-million to the University of Wisconsin - Madison in hopes of jumpstarting construction of a new engineering building. The university wants to build a 395,000-square-foot facility as the "centerpiece" of its seven-building engineering campus. The project has been in planning for years and comes with a $347-million price tag; that sum is split between $197-million in recently approved state funding and a goal for $150-million in private donations. The eight-story building will be named the Phillip A Levy Engineering Center and will allow the College of Engineering to expand its enrollment, officials aid. There will be seven stories above ground and another below. (Finance & Commerce)