Building Buzz: August 26 - 30
We're reading the headlines so you don't have to.
From Blaine's advancing redevelopment plan to hotel construction hitting its highest level in 16 months and the Rapidan Dam's plan to be torn down to what to expect in the industry come 2030, here's what was buzzing in the building world the week of August 26-30, 2024:
AUGUST 26
Blaine advances redevelopment plan with warehouse purchase
Blaine purchased a warehouse in the area around the 105th Avenue redevelopment project for $3.99-million, according to a certificate of real estate value. The redevelopment, which was first brough forward earlier this spring, aims to create an entertainment hub in Blaine, which would center on a new stadium for a yet-to-be identified professional baseball team. In late May, the Blaine City Council gave preliminary approval for $34-million worth of tax abatement bonds for the stadium. The redevelopment is intended to be constructed in phases, according to the city's webpage on the redevelopment. Phase 1 will be centered on the building of the sports facilities on the property, including the stadium, "golf entertainment" and a year-round pickleball facility, the webpage says. Future phases of the project will bring hotels, housing, restaurants and office space to the property. (Finance & Commerce)
AUGUST 27
Bloomington weighs rezoning to allow rental complex to grow
Attention Bloomington families: New apartment units are potentially coming to the Southgate Apartments. Mid Continent Management Corp., the owner of Southgate, is turning to the Bloomington Planning Commission in hopes of diversifying the options available at the 1969-built apartment complex by constructing 12 new three-bedroom apartments. The complex consists of four apartment buildings located at 1001 and 1101 East 80th Street, as well as 8100 and 8070 12th Avenue South. Spread throughout the four structures are 148 one-bedroom units and 96 two-bedroom units. Should the rezoning happen, the project would bring four three-bedroom units each to the 1001 building and the 8070 building. The remaining four three-bedroom units would then be split evenly between the 8100 and 1101 buildings, according to planning documents. (Finance & Commerce)
Dick's House of Sport planned for Bloomington
Kraus-Anderson is heading to an August 29th Bloomington Planning Commission meeting to propose a 120,000-square-foot Dick's House of Sport and an 18,000-square-foot outdoor athletic field on the north side of Southtown Shopping Center at 7803 Penn Avenue South, just east of a Kohl's store. The development is in the initial phase in a "multi-phase, multi-decade redevelopment of Southtown," according to city documents. Construction could begin this fall. Kraus-Anderson will build a two-story, single-tenant retail building to accommodate the store, taking the spot of Herberger's and Toys 'R' Us, both of which are almost completely demolished. A future development plan includes a four-story medical office building. The developer earlier this year had approached the city with more general plans for Southtown, saying only that the tenant would be a major sports anchor with an adjacent athletic field --- a clue that it would be a House of Sport, which leans into experiential retail. (Minneapolis - St. Paul Business Journal)
Hotel construction hits highest level in 16 months
The volume of hotel rooms currently being built in the United States hit its highest level in 16-months, according to CoStar's latest June 2024 data. While globally, the real estate information and analytics company finds hotel construction has dropped or leveled off, the U.S. has more than 157,000 room sunder construction, and another 600,000 in the planning stages. Even though numbers have not fully rebounded to pre-pandemic levels --- the U.S. peaked at 220,000 new rooms opened in April 2020 --- they demonstrate strong demand despite the headwinds of inflation and high interest rates. (Finance & Commerce)
AUGUST 28
Graham breaks ground on $55M Iowa behavioral hospital
Graham Construction & Engineering broke ground on a new $55-million , 200,000-square-foot behavioral health hospital in Council Bluffs, Iowa, for Methodist Jennie Edmundson Hospital and Acadia Healthcare Company, project officials announced. The project, designed by Stengel Hill Architecture, will serve communities in western Iowa and eastern Nebraska at a time when there is a shortfall of 300 inpatient behavioral health beds in the region. Last month, project officials said the facility is also expected to include large treatment rooms for group therapy sessions; centralized nursing stations that will give staff a line of sight to all common areas; high ceilings and large windows to take advantage of natural light; outdoor spaces; and state-of-the-art and high-tech features. The hospital is scheduled to open in 2026. (The Construction Broadsheet)
Rapidan Dam and bridge to be torn down ahead of yearslong rebuilding process
The Blue Earth County Board of Commissioners voted to remove the Rapidan Dam near the city of Mankato, about 80 miles south of Minneapolis, and replace the County Road 9 Bridge, both of which were at risk of crumbling. The officials jumpstarted what will likely be a yearslong rebuilding process as the structural integrity of the dam and bridge remain uncertain. Studies commissioned by the county in 2021 found repairing the dam would cost $15-million and removing it would cost $84-million, but environmental conditions have changed since then. The next step will be securing funding to finance the repairs, which could come from a combination of state and federal sources. The county is working to develop a plan with federal agencies including the Federal Emergency Management Agency and the Federal Energy Regulatory Commission. (Finance & Commerce)
Sofidel America plans major expansion in Duluth
Solfidel America Corp., the U.S. operation of Italy-based tissue paper manufacturer Sofidel, wants to add nearly 600,000-square-feet of space to its Duluth operations, a project that could bring an additional 160 jobs to the city, company officials say. This week, the city launched an environmental review of the project, which would support "expanded manufacturing, packaging, warehousing, and shipping capabilities" in Duluth and help the company convert tissue rolls and materials into "various commercial products," according to an Environmental Assessment Worksheet. Sofidel America is proposing four new buildings with a combined 588,759-square-feet of space. State law requires environmental reviews for any new construction or expansion project of an industrial facility with 400,000-square-feet of additional space, according to the EAW. The expansion would include a 297,778-square-foot "conversion building" with 42,422-square-feet of conjoining annex, lockers, and officers. Also planned are a 17,743-square-foot corridor, 76,755-swuare-feet of auxiliary material storage, 108,036.6-square-feet of warehousing, 29,932-square-feet of shipping space, and more. The project includes "storm water filtration basins, modification to railroad crossings, installation of new gas and electrical service lines, employee and truck parking, exterior lighting, and pavement." The timeline calls for major construction in 2025 and 2026. (Finance & Commerce)
Woman-owned firm partners with Mortenson to build Milwaukee museum
In an industry where representation is sorely needed, Mortenson and woman-owned ALLCON will work together on a space inside the Milwaukee Public Museum (MPM). The museum started construction in June on a 200,000-square-foot, five-story building on North Sixth Street and West McKinley Avenue. The $420-million structure will replace the museum's former home at 800 West Wells Street as the old facility faces millions worth of deferred maintenance. Construction on the new structure is expected to be complete in 2027. MPM is including minority- and woman-owned businesses in the construction process to ensure the economic benefits of a new building will trickle down to the surrounding community. ALLCON will build a 4,000-square-foot classroom and retail space in the museum's first floor and include as many local subcontractors, suppliers and trades as possible. In partnership with Mortenson, the contractor is offering learning experiences to its partners on the job. (Finance & Commerce)
AUGUST 29
Contractors are all in on hiring. Staffing isn't getting easier.
Contractors are on a quest for more workers, but they're still struggling to find them. A new Associated General Contractors of America survey has shared numbers providing context around the issue. The majority of U.S. contractors have increased their headcount in the last 12 months, according to the survey of AGC members, and more respondents this year are looking for both hourly craftworkers and salaried contractors. More than nine in 10 report they have trouble finding the people they need. Indeed, the report indicates that the lack of workers has created a problem for delivering projects. (Construction Dive)
Major infrastructure investments made in Wisconsin
Gov. Tony Evers recapped transportation projects and investment following visits to local communities over the past several weeks. Both state and federal organizations invested in transportation and infrastructure projects across Wisconsin, from rebuilding bridges and roads to lead service line replacements and electric vehicle charging. The governor also touted fixing 7,000-miles of roads and 1,780 bridges since his administration started in 2019. (Finance & Commerce)
US DOT proposes rule on pedestrian accessibility standards
The U.S. Department of Transportation published a proposed rule on August 22nd to incorporate accessibility guidelines for pedestrian facilities in the public right-of-way, including sidewalks, crosswalks, pedestrian traffic signals, transit stops and on-street parking. The guidelines that DOT looks to incorporate were issued last year by the Architectural and Transportation Barriers Compliance Board. Those guidelines, which became effective September 7, 2023, fall under the American with Disabilities Act, which applies to state and local government facilities among others, and the Architectural Barriers Act, which applies to many federal facilities. (Smart Cities Dive)
What to expect from the construction industry by 2030
By 2030, the construction industry is set to undergo a huge transformation driven by the adoption of emerging technologies and a growing focus on collaboration and sustainability. Innovations like Building Information Modeling (BIM), 3D printing, drones, smart materials, robotics, and artificial intelligence (AI) are set to play a major role in this shift, leading to a more efficient, modern, and environmentally friendly way of building. (AZO Build)
Work begins on police precinct at downtown Minneapolis' Century Plaza
Construction has begun on Minneapolis Police Department's planned First Precinct police station at downtown Minneapolis' Century Plaza site. But the timeline for the planned conversion of a major portion of the property into a hotel is still unclear. Demolition work is largely complete at the location of the planned precinct, which is expected to open by the first quarter of 2025, Barbara O'brien, the city's director of property services, told a Minneapolis City Council committee earlier this month. The First Precinct is currently located in leased space at 10 North Fourth Street. Last month, city officials issued a permit to Minneapolis-based Ryan Cos. US Inc. for the buildout of a police station at the site, located at the corner of South 11th Street and Third Avenue. The Swervo-tied entity in 2022 won city approval to convert part of the property into a 213,000-square-foot hotel with 149 rooms and about 11,000-square-feet of rooftop amenity space. The First Precinct would occupy about 37,000-square-feet in another part of the building. (Minneapolis - St Paul Business Journal)
AUGUST 30
Ancient civilizations offer lessons for today's builders
Modern buildings tend to take electricity and air conditioning for granted. They often have glass facades and windows that can't be opened. And when the power goes out for days in the middle of a heat wave, as the Houston area experienced in July 2024 after Hurricane Beryl, these buildings can become unbearable. Yet, for millennia, civilizations knew how to shelter humans in hot and dry climates. With global temperatures rising, studies show that dangerously hot summers like those in 2023 and 2024 will become increasingly common, and intense storms might result in more power outages. To prepare for an even hotter future, designers today could learn from the past, looking at techniques and methods used by the ancient Sumerians, Egyptians, Puebloans, Muslim caliphates, and Mayans and Teotihuacans. (Finance & Commerce)
Construction firms struggle to find craft workers
National contractors came out with a recent survey that most construction companies are having a hard time finding craft workers and called on the federal government to invest in workforce development to bridge the gap. Currently, contractors across the country are looking for more workers and are having difficulty filling job openings, according to a survey by the Associated General Contractors of America and human resources company Arcoro. The association reported that 94% of respondents to the survey said they have openings for craft workers and 85% have openings for salaried workers. Around a third of contractors working in the building construction, highway, federal and heavy and utility infrastructure subsectors reported fallen headcounts in the past year. (Finance & Commerce)
Labor Department projects 10-year gain for construction employment
Construction employment is projected to climb by 380,100 jobs over the next decade and record a model annual growth rate in that period, the U.S. Bureau of Labor Statistics says in a new forecast. The bureau's annual employment projections report, which was released on August 29th, says construction's compound annual growth in the 2023-2033 period will be 0.5%. That compares with a rate of 0.1% for all industries. The new report also has detailed breakdowns for construction job categories. BLS projects an employment increase of 238,900, or 6.3%, over the 2023-2033 span for construction trades workers. (Engineering News-Record)
What the Twin Cities can learn from Calgary about office conversions
Earlier this month, St. Paul Mayor Melvin Carter stood before constituents, his fellow elected officials and others and proposed a new budget. In it was money designated for facilitating office-to-housing conversion projects in the capital city. Carter said in his speech that the money will be going toward a joint study with the Downtown Alliance and $1-million of it will cover waiving application fees for two projects. One of the most famous and successful examples of a city creating such a program is in the Canadian city of Calgary, Alberta. The program's goal was to convert 6-million-square-feet of office space in the city's downtown over 10 years. In the first three years, the program, called the Downtown Calgary Development Incentive Program, now has 2-million-square-feet of office space in some part of the conversion process, according to Calgary staff. Developers in the city have praised the program and said it has worked so well that the program ran out of money. So, what can Minneapolis, St. Paul, and any other Minnesota city learn from Calgary and its redevelopment efforts? (Finance & Commerce)
