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Building Buzz: March 4 - 8

posted on 03.15.2024

We're reading the headlines so you don't have to.

From the Chanhassen Cinamen Redevelopment project to a new CEO named at Kraus-Anderson to the approval of the I-94 expansion in Milwauke, here's what was buzzing in the building world the week of March 4-8, 2024:

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Builder JE Dunn Marks 100 Years
JE Dunn Construction plans a "year-long campaign" to celebrate its 100 years in business and nearly 80 years in Minneapolis, according to a press release from the construction group. JE Dunn is a construction company that is family- and employee-owned, according to the press release. It has 26 offices throughout the nation. It is the eigth-largest domestic general building contractor in the United States. (3-6-2024 | Finance & Commerce)
 

Chanhassen Cinema Redevelopment Project Up for Review
An estimated $125-million redevelopment project would bring hundreds of apartment units and retail uses to the former Chanhassen Cinema site in Chanhassen --- as well as a new artwork dedicated to Minnesota music royalty. Roers Cos., which will go before the City Council for project approvals, wants to redevelop the four-acre site near West 78th Street and Market Boulevard with a 310-unit, market-rate apartment building and 14,000-square-feet of retail space. (3-6-2024 | Finance & Commerce)
 

MnDOT Schedules Meeting About Stone Arch Bridge
The Stone Arch Bridge restoration is the subject of a March 19th virtual public meeting hosted by the Minnesota Department of Transportation. Construction begins this spring. As part of the project, crews will repair the historic bridge over the Mississippi River on the edge of downtown Minneapolis. Repairs and mortar replacement will improve the bridge's condition and stonework. (3-6-2024 | Finance & Commerce)
 

$300M Ryan Cos. Redevelopment of Greensboro Berkshire Hathaway Site is Shelved
Ryan Cos. is no longer pursuing a $300-million redevelopment of the former News & Record site in downtown Greensboro, NC., a spokesperson from the Minneapolis developer confirmed to Triad Business Journal. The mixed-use project the Ryan Co. and TH3 Partners LLC were planning included two, 250,000-square-feet commercial buildings with around 300 to 400 apartment units that would have been built after the current 158,000-square-foot building is demolished. (3-7-2024 | Minneapolis / St Paul Business Journal)
 

A Government Business Reporting Mandate Loses in Court. Here's What Happens Next.
The Corporate Transparency Act, which kicked in January 1st, requires businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners. It's part of a larger effort by the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) to crack down on money laundering and other financial crimes. On March 1st, a U.S. District Court judge in Huntsville, Alabama, ruled the government overstepped and the legislation exceeds the powers granted to its by the Consistution. The National Small Business Association brought the lawsuite alongside small-business owner Isaac Winkles. (3-7-2024 | Minneapols-St Paul Business Journal)
 

Construction Job Openings Surge 41% Year Over Year
The construction industy counted 413,000 open jobs on the last day of January, a 41% increase year over year, or 120,000 more unfilled positions, according to Bureau of Labor Statistics data released. At the end of January, 4.4% of construction jobs went unfilled, down slightly from 4.7% in December and 5% a year prior. Quits hardly changed from December, and were down 19.6% year over year. Meanwhile the industry counted about 40% more layoffs in January 2024 than in the same month in 2023. (3-7-2024 | Construction Dive)
 

Luxury Apartment Tower 4th & Park in Minneapolis' Downtown East Opens in April
The 350-unit, 25-story high-rise, known as 4th & Park, is gearing up for move-ins starting April 1st. The mixed-use tower is currently pre-leasing for the apartments, owner and property manager Kirkland, Washington-based Weidner Apartment Homes announced. The 265,000-square-foot tower offers studios, one-, and two-bedroom units and three-bedroom penthouses. Units feature quartz countertops, stainless steel appliances, oversized vanity mirrors, walk-in closets and wood-plank flooring. (3-7-2024 | Minneapols-St Paul Business Journal)
 

New CEO Named at Kraus-Anderson After Engelsma Steps Down
Bruce Engelsma, longtime leader of Kraus-Anderson Cos., is stepping back from this role as CEO, and Chief Operating Officer Peter Diessner is the new top boss at the cosntruction group, according to a press release. Diessner has been the COO of Kraus-Anderson since March 2023 and held various leadership positions at its subsidaries since May 2018. Before that he was a real estate attorney at Fredrickson & Byron and then Speeter & Johnson. (3-7-2024 | Finance & Commerce)
 

Rise in Project Abandonments Signals Continued Industry Turmoil
The Project Stress Index --- a measure of constructin projects with a delayed bid date, or that have been paused or abandoned --- rose 1.7% in the last 30 days, according to a March report from ConstructConnect. Work put on hold increased 11% over the previous 30 days through March 2, said Michael Guckes, senior economist at ConstructConnect. Compared to the same period in 2023, the project stress index remains up 13%, added Guckes, signaling ongoing uncertainty within construction. But public and private sector projects continue to show different patterns. While both face increasing delays and cancellations, public projects, due to their funding mechanisms, remain in a comparitively stronger position to push work forward. (3-7-2024 | Construction Dive)
 

The High Cost of Maintaining Affordable Housing
Michael Howard was a Richfield City Council member when, in 2015, nearly 670 residents were displaced from Crossroads at Penn, a large Richfield apartment complex that was home to low-income residents. A Twin Cities developer had purchased the building, renovated it, and rebranded it as the Concierge, offering market-rate units that the current residents could not afford. Two years later, Seasons Park Apartments, another affordable housing complex in Richifield, was at risk of being turned into market-rate units just as Crossroads was. Instead, Howard and his city council colleagues worked with Aeon, a developer and operator of affordable housing, which ultimately took ownership of the complex and preserved 422-units of affordable housing. (3-7-2024 | Finance & Commerce) 
 

ASHRAE Commercial Building Code Standard Now Requires On-Site Renewables
The U.S. Department of Energy has issued ASHRAE a determination affirming that ANSI / ASHRAE / IES Standard 90.1-2022, which incorporates a renewable energy mandate for the first time, will improve energy efficiency in commercial buildings governed by the code. The DOE's technial analysis estimates that implementing Standard 90.1-2022, the Energy Standard for Sites and Buildings Except Low-Rise Residential Buildings, would provide commercial buildings site energy savings of 9.8%, source energy savings of 9.4%, and carbon emissions reductions of 9.3% on a weighted national average. When facroting renewable energy into these results, those improvements increase to site energy savings of 14%, source energy savings of 14.7%, and carbon emission cuts of 14.7%, the analysis suggests. (3-8-2024 | Smart Cities Dive)
 

I-94 Expansion in Milwaukee Receives Federal Approval
The Wisconsin Department of Transportation announced that the plan received an OK from the Federal Highway Administration. The state DOT will now move on to final design and construction. The project will widen I-94 from six to eight lanes along a 3.5-mile stretch between 16th and 70th streets on teh city's west side. Along with adding lanes, the project includes road modifications that will eliminate lef-hand exit and entrance ramps and "right-sizing" the Stadium Interchange. (3-8-2024 | Wisconsin Public Radio)
 

Lead from old paint and pipes remain deadly hazard in millions of U.S. homes
Widely used in products such as paint and gasoline until the late 1970s, lead continues to contaminate environments and harm the health of people around the world. The World Health Organization estimates that more than 1-million deaths each year are attributable to lead poisoning, with the highest exposures in developing nations. Lead continues leaching from old paoint, pipes and industrial sources into soils, homes and waterways across the globe. (3-8-2024 | Finance & Commerce)
 

Overhaul of Middleton's zoning code includes bird-safe glass requirements
According to the new ordinance, buildings 10,000-square-feet or larger, facades 60-feet from the ground and sky bridges must be treated with a pattern of quarter-inch dots to rpevent birds from colliding into buildings mid-flght. The new comprehensive plan also calls for promotion of biodiversity; officials said creating a rule to deter bird collisions is a step toward its ecological goal. (3-8-2024 | Finance & Commerce)
 

Women in Construction Date Report Released
Only 10% of women comprise the construction workforce, with 4% working onsite. While 67% of the women surveyed reported that they integrated into the industry somewhat smoothly and 72% revealed there were plenty of opportunities for them to advance, 67% of the women raised concerns about the lack of gender-friendly and maternity-feriendly safety equipment. This poses a major problem when keeping women feeling safe and wanting to continue working in the industry. (3-9-2024 | For Construction Pros)
 

Projects to Watch

Building Buzz: February 12 - 16

posted on 02.14.2024

We're reading the headlines so you don't have to.

From switching from hard hats to safety helmet, a 1,300-unit development in Duluth, and MSP among 114 airports receiving federal grant money for terminal improvements, here's what was buzzing in the building world the week of February 12 - 16, 2024:

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Construction Leaders Recognizing & Responding to the Opioid Crisis
The National Association of Home Builders (NAHB) began expressing concern about opioids to its members in 2015-2016. The Association of Union Constructors (TAUC) Spring 2018 edition of TAUC's Construction User magazine was devoted to the opioid issue with the theme "Confronting the Opioid Crisis: What Contractors Can do Today." The industry leaders highlighted in this article were among the earliest to recognize the need to address opioids in the commercial and industrial sectors of the commercial industry. (2-12-2024 | For Construction Pros)
 

Developer revises Edina affordable-housing project after community pushback
The revisions reduced the height of the apartment building, added townhome units and removed a second phase of the project --- moves that cut the total number of units in the project from 141 to 89, according to city documents. The Minneapolis developer, Solhem Cos., will seek city feedback in a review this week. (2-12-2024 | Minneapolis / St Paul Business Journal)
 

First stone-built temple in Middle East avoid modern architecture
Pink sandstone spires decorated with deities and the pious soar above what was once a barren patch of desert between Abu Dhabi and Dubai --- now the site of the first stone-constructed Hindu temple in the Middle East. The soon-to-be open BAPS Hindu Mandir signals how far the United Arab Emirates has come in acknowledging the different faiths of its expatriate community, long dominated by Indians across construction sites and boardrooms. The temple nods back in its seven spires, the number of sheikdoms in this autocratic federation on the Arabian Peninsula. (2-12-2024 | Finance & Commerce)
 

FPC Live will break ground on Milwaukee music venue in the spring
In November, the Common Council unanimously approved plans for the 4,500-person venue at 1051 North Vel R. Phillips Avenue. FPC Live, an affiliate of Live Nation, originally had plans for two separate venues for $50-million but amended to make one instead. Miron Construction is the general contractor for the project, having recently submitted requests to construct the foundation and footings for $33.9-million, according to an application. The parcel area is around 252,666-square-feet and crews will build a three-story building, city records showed. The project work area will be around 83,750-square-feet. (2-12-2024 | The Daily Reporter)
 

Health care, housing drive development in Maple Grove
The year ahead looks bright for development in Plymouth, with a major redevelopment of the former Prudential office campus on Bass Lake Road set to break ground this spring and several mixed-use projects proposed or under construction along Highways 55 and 169. (2-12-2024 | Finance & Commerce)
 

To address traumatic brain injuries, Boldt switches from hard hats to helmets
According to the U.S. Centers for Disease Control and Prevention, deaths related to brain injuries made up 25% of construction fatalities from 2003 to 2010. Construction has the greatest number of both fatal and nonfatal work-related TBIs in the U.S., federal officials added. (2-12-2024 | Finance & Commerce)
 

ADUs increasingly allowed but infrequently built
Edina could soon become the latest Twin Cities suburb to allow accessory dwelling units, or ADUs. The Edina Planning Commission and City Council will hold public hearings on the matter early this year, with a possible City Council vote to follow. Despite the apparent popularity, ADUs remain relatively uncommon in to the metro area. Eagan, one of the first metro cities to legalize ADUs in 2014, has just three. Richfield, which legalized ADUs in 2017, likely has fewer than 10. Minneapolis has by far the most of any metro city, but its number is still comparatively low: 232 as of early last year, representing fewer than 1% of eligible properties. The region has relatively few ADUs because they're expensive to build and because many municipal ADU ordinances restrict their size, features, building materials, and permitted uses. (2-13-2024 | Finance & Commerce)
 

Delayed by COVID, Milwaukee affordable housing development breaks ground
The project is a five-story, 55-unit building with 7,500-square-feet of retail space on the first floor at North Dr. Martin Luther King Drive between West Concordia and West Keefe avenues. Milwaukee-based Martin Luther King Economic Development Corp. (MLKEDC) and Wauwatosa-based KG Development together unveiled and launched the project, with the help of federal and local funding. Crews from The Sigma Group will perform site work and Catalyst Construction will be responsible for construction management. (2-13-2024 | Finance & Commerce)
 

Duluth Council grants TIF to first phase of 1,300-unit development
The TIF district that received a nod of approval was for the first phase of the development. This phase, said ICS Managing Partner Jeff Schiltz, will be made up of two 60-unit condominium buildings, as well as a market rate 220-unit apartment building. The multi-phase development, the proposed Incline Village, will be developed on a former Duluth high school site at 802 East Central Entrance and it could significantly boost the available housing in the city. (2-13-2024 | Finance & Commerce)
 

Greiner Construction gets new CEO, becomes largest minority-owned business in metro
Greiner Construction has a new CEO and majority owner, and that change makes it the largest minority-owned business in the Twin Cities. Josh Helegesen took over the helm of the Minneapolis-based construction company earlier this year, after serving in various positions with the firm since 2001. Helgesen replaces Hans Siefker, who served as the company's second CEO for over 10 years. (2-13-2024 | Minneapolis - St Paul Business Journal)
 

Revised Milwaukee music venue to begin construction in April
In November, the Common Council unanimously approved plans for the venue at 1051 North Vel R. Phillips Avenue. FPC Live, an affiliate of Live Nation, originally had plans for two separate venues for $50-million but amended to make one instead. Promoters said the original project was hit by rising construction costs and interest rates; the amended project will cost around $60-million. Now, the promoter is on a timeline to break ground in April and launch full construction in May. Previously, officials said construction will take place on a 18-month timeline and wrap up in 2025. (2-13-2024 | Finance & Commerce)
 

Bloomington looks to spur more deeply affordable units
Bloomington Housing Development Specialist Kenny Niemeyer said the intention of the Opportunity Housing Ordinance, or OHO, is to meet or exceed the Metropolitan Council's affordable housing goals for Bloomington. He said the goal has been exceeded for number of needed 60% AMI units. For 50% AMI units, the city is about halfway to its goal. For 30% AMI, Bloomington needs 445 units by 2030 but currently only has 32 units under construction. (2-14-2024 | Finance & Commerce)
 

Highway 10 expansion up for comment
The project will address deficiencies and accommodate future development and redevelopment in the area, according to an Environmental Assessment Worksheet released by MnDOT. The meeting is set for March 14 and will discuss the highway's expansion in Wadena and Otter Tail counties. (2-14-2024 | Finance & Commerce)
 

Mayo Clinic's Rochester expansion so big, even building permits cost $22 million
The Post Bulletin has a report on how Mayo's "Bold. Forward. Unbound. in Rochester" initiative is already impacting the city even though the project has barely left the ground. With a project this size --- the health care giant's plans will include 2.4--million-square-feet of space and stretch over years --- pretty much all the impacts are big. (2-14-2024 | Minneapolis / St Paul Business Journal)
 

Minnetonka rejects plans for single-family homes, condos
Minnetonka-based Lake West Development had put forward revised proposals for different parts of the city; one of them for two 20-unit condominium buildings and another for 14 single-family home lots. Both of the proposals were shut down after the council largely argued that the developments did not meet the requirements for rezoning or variance approvals, including for tree removal. (2-14-2024 | Minneapolis / St Paul Business Journal)
 

Project receives environmental OK in Hastings
The city recently determined that Land REquity Development's proposed 511-unit Walden at Hastings project does not need an Environmental Impact Statement. An EIS is required when a project is deemed to have significant adverse impacts on the environment. The 71.1-acre development site is just east of Highway 316 and Michael Avenue in Hastings. Included in the plans are single family, twin home, townhome, apartments and senior housing. About 17.5-acres of natural areas will be reserved. (2-14-2024 | Finance & Commerce)
 

Vintage Duluth school reopens as apartments
Saturday Properties, working with Kraus-Anderson on construction and AWH Architects on design, developed the $34.9-million adaptive reuse project, which created 122 apartments within the well-preserved bones of Historic Old Central High School. Construction began in May 2022 and wrapped up in January. Now known as Zenith DCHS, the building is about 50% leased. (2-14-2024 | Finance & Commerce)
 

Wisconsin lawmakers want parking structure inspections after collapse
Lawmakers are making a bipartisan proposal to require owners to inspect parking structures every five years or else face fines, following a parking garage's partial collapse at the Bayshore Town Center in Glendale one year ago. The drafted rules would require parking structure owners to work with engineers and inspect their garages every five years; bridges across the state are inspected every two to four years. They hope to have the proposal numbered and voted on before the end of the legislative session next month. (2-14-2024 | Finance & Commerce)
 

Asset preservation takes early bonding spotlight
Up for review at the meeting was Gov. Tim Walz's $982-million bonding recommendation, also known as the 2024 Infrastructure Plan, which includes $441-million for asset preservation --- 45% of the total package. The asset preservation line item addresses needs at state buildings and college campuses throughout Minnesota. Most of it would go to the University of Minnesota and the Minnesota State University systems ($103-million each) and state agencies ($224-million). (2-15-2024 | Finance & Commerce)
 

Minneapolis-St Paul International Airport adding gates to Terminal 2 with $20M federal grant
The $20-million grant was part of President Biden's 2021 bipartisan infrastructure deal, which awarded $5-billion to the Federal Aviation Administration's Airport Terminals Program. The two new gates, which will become H15 and H16, will be located on the terminal's northern side, just past gates currently served by Southwest Airlines. Terminal 2 is MSP's smaller terminal and primarily services airlines such as Sun Country, Allegiant, Condor, Frontier, Icelandair, JetBlue and Southwest. (2-15-2024 | Minneapolis/St Paul Business Journal)
 

MSP among 114 airports receiving federal grants for terminal improvements
The Biden administration said it is providing $970-million for improvements at 114 airports around the country, with work ranging from wider concourses and new baggage-handling systems to new terminals at some small airfields. Administration officials said the money comes from a $5-billion grant program to modernize airport terminals. Four airports in Minnesota are set to receive funding this year to improve terminals. Bemidji Regional Airport will get $261,250; Two Harbors Municipal Airport will receive $1.14-million; Duluth International Airport will get $10-million; and Minneapolis-St. Paul International Airport will receive $20-million. (2-15-2024 | Finance & Commerce)
 

Microsoft buys land for data center in Becker
This week, the technology giant with headquarters in Redmond, Washington, closed on a deal to pay $17.7-million in cash for the data center development site, a multi-parcel, 295-acre property at 125th Avenue and Southeast River Road in Becker, according to a certificate of real estate value made public. Xcel Energy, doing business as United Power and Land Co., is the seller. The property is adjacent to Xcel Energy's Sherco Coal Plant, which will be decommissioned by 2030. Project detail and a construction timeline remain somewhat of a mystery. (2-16-2024 | Finance & Commerce)
 

Report suggests industrial market bouncing back
The two reports, one on the national performance of the industrial market and one on the local Twin Cities performance, indicated that the market showed the beginnings of a bounce-back after three quarters hampered by high interest rates. The Minneapolis report highlights the Eagle Realty Group's purchase of a four-building portfolio, a recapitalization deal made alongside Capital Partners in late October. It also points to the $33-million price tag for an Arden Hills warehouse that was bought by Altus. (2-16-2024 | Finance & Commerce)
 

Projects to Watch

Building Buzz: February 5 - 9

posted on 02.07.2024

We're reading the headlines so you don't have to.

From buildings undergoing adaptive reuse transformations and mass timber to modernizing U.S. electricity transmissions to a music venue breaking ground in Milwaukee, here's what was buzzing in the building world from the week of February 5 - 9, 2024:

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Church-to-treatment cent project up for approval in St. Cloud
Nelson Construction and Development, working with Ascension Recovery Services, wants to rehab the 15,303-square-foot church at 302 Fifth Avenue South and turn it into a 48-bed inpatient and outpatient center for treatment of substance abuse, anxiety, and depression. Built in the 1960s, the building has been vacant since 2013, when the First United Methodist Church relocated after 50 years of holding services there. The building has an assessed value of $208,000, according to Stearns County property records. (2-5-2024 | Finance & Commerce)
 

Comcast Minnesota broadband expansion includes Corcoran, Cologne, Nowthen
Philadelphia-based Comcast said it is expanding service in Corcoran, Cologne, Nowthen and parts of Grant, Hugo, Rogers, and Stillwater Township. The expansion is part of Comcast's broader statewide initiative that has seen about $473-million investment across Minnesota over the past three years. The latest expansion is receiving funding from Border-to-Border Broadband, Minnesota's grant program that funds internet expansion to unserved or underserved areas in the state. According to Corcoran's city website, the program gave Comcast $1.2-million for its expansion into Corcoran last fall. (2-5-2024 | Minneapolis-St. Paul Business Journal)
 

Engineers redesign California's piers to withstand bigger storms
More storms, rising seas and huge waves are taking their toll on California's iconic piers that have dotted the Pacific coast since the Gold Rush, posing the biggest threat yet to the beach landmarks that have become a quintessential part of the landscape. At least a half dozen public piers are closed after being damaged repeatedly by storms with multiple atmosphere rivers hitting the state over the past year. Repair costs have climbed into the millions of dollars. (2-5-2024 | Finance & Commerce)
 

Metro council receives request for hyperloop study, connecting Twin Cities and Rochester
The non-profit Global Wellness Connections is petitioning for $2.5-million to conduct a study on the feasibility of a "hyperloop" project between Rochester and Bloomington. The project would exist nearly entirely underground, keeping farms and rural communities unburdened by the hypothetical infrastructure. (2-5-2024 | KAALTV - ABC 6 News)
 

Redevelopment of former Minneapolis church stalls in face of lawsuit, 2040 plan uncertainty
The city of Minneapolis and the project's developers --- an entity called Beard Manager LLC --- are fighting a lawsuit brought by a neighboring property owner, Dan Murphy, who's arguing the city erred in granting approvals for the project. The project at the heart of the lawsuit is located at the site of the former Lake Harriet Christian Church, at 5009 South Beard Avenue, which is just a few blocks east of the 50th and France shopping district. The project would replace the church with a 5-story, 63-unit apartment building and 1,500-square-feet of commercial space. (2-5-2024 | Minneapolis-St. Paul Business Journal)
 

Wisconsin program turns office space into affordable housing
Lincoln Avenue Capital proposed building a 203-unit affordable housing complex in the footprint of two office buildings at 250 and 350 Bishops Way. It's one of three projects that will get $1-million each, or 20% of the cost, to turn vacant commercial buildings into affordable housing. The developer purchased a 3.7-acre parcel from the Wisconsin Robinson Family, according to the land sale deed. The project is set to break ground this year, Brookfield officials said. (2-5-2024 | Finance & Commerce)
 

Former Model-T factory on St. Paul's University Avenue is demolished
The Pioneer Press has a report on the end of 117 University Avenue West, which was built in 1914 to assemble Ford's Model-Ts, the factory assembled as many as 500 cars per day at one point, before the work shifted to Ford's Highland Park plant in the 1920s. The property, which is close to the State Capitol and a Green Line light rail station, will be converted to green space as part of a project led by the Capitol Area Architectural and Planning Board. (2-6-2024 | Minneapolis-St Paul Business Journal)
 

Historic Lutsen Lodge to be rebuilt following fire
The fire at the Lutsen Lodge was reported around 12:30am. The only staffer on duty spotted smoke coming from electrical outlets in the floor in the lobby and called 911. The employee made it out safely. No guests were checked in because it was early in the week. The building was fully engulfed as crews from eight departments battled the blaze. The state fire marshall's office was investigating, but the cause could not be immediately determined. Lutsen's manager quickly pledged the lodge would be rebuilt in the same design. (2-6-2024 | Finance & Commerce)
 

Kraus-Anderson buys Phoenix construction company
The acquisition expands the Minneapolis company's growth in the southwest U.S. and is the first acquisition of another company in KA Constructions 126-year history, according to a press release. Founded 20 years ago, Phoenix-based Sonoran Crest Construction has an "established healthcare presence," KA said. (2-6-2024 | Finance & Commerce)
 

Lake Bronson dam project on track for bids in January
The Minnesota Department of Natural Resources has completed one of the final phases required prior to bidding out the Lake Bronson Dam reconstruction. The DNR's next step while the project is out for bids is to complete the permitting needed for the project. They will need a few permits from the U.S. Army Corps of Engineers --- sections 401 and 404 of the Clean Water Act, which pertain to water quality and dredging and fill material placed within wetlands for construction; a permit regarding endangered species; in conjunction with the SHPO office, a permit regarding historic properties. The DNR may also need to get permitting from Kittson County regarding right of way on CSAH 28, which runs over the dam and from FEMA for flood plain mapping revisions. (2-6-2024 | Kittson County Enterprise)
 

Mass timber products gain momentum in building industry
Wood requires the least amount of energy to produce in comparison to other building materials such as steel and concrete; it's also renewable and sequesters carbon. The carbon dioxide in the air is extracted and carbon is transformed and stored in the wood fiver, taking a greenhouse gas out of the atmosphere. Engineered wood products include cross-laminated timber (CLT), laminated veneer lumber, glue-laminated lumber (glulam), dowel-laminated timber (DLT) and nail-laminated timber (NLT). (2-6-2024 | Finance & Commerce)
 

Shifting attitudes towards sustainability facilitate industry changes
The built environment generates more than 40% of annual carbon emissions. According to Chicago-based McKinsey & Co., that puts the industries responsible, developers and builders of residential and commercial buildings as well as infrastructure, among the highest producers of carbon emissions --- more than shipping, aviation and producing electricity. But shifting attitudes around the topic of sustainability are providing an opportunity for change. As one of the world's largest, global design and architecture firm Gensler is helping lead that charge. And so far, it seems to be working. (2-6-2024 | Finance & Commerce)
 

Trident pitches 128-unit apartment project in Apple Valley
Apple Valley's Planning Commission will review a pitch from St. Cloud-based Trident Development for the proposed 4-story building on the 5-acres site at the northwest corner of English Avenue and 157th Street West. Plans for the site have "evolved over time" in response to changing market conditions. Previous master plans showed future retail development at the Trident site, as well. Specifically, a 2017 plan called for a "big box retail center" there. In 2019, the plan was revised to show two "medium-sized" retail buildings. (2-6-2024 | Finance & Commerce)
 

Uncertainty plagues venue construction for 2026 Olympics
An all-new 15,000-seat hockey arena that's supposed to welcome back NHL players to the Olympics for the first time in more than a decade is a giant construction pit. The 2026 Milan-Cortina Olympics start exactly two years from February 6, 2024, and it still seems like there are more questions than answers for a complicated games that will be staged across a large swath of northern Italy spread over five different venue clusters. (2-6-2024 | Finance & Commerce)
 

Plymouth advances plan for 330 apartments
The City Council authorized a comprehensive plan amendment and other approvals for Dietrich's proposed 330-unit Highway 55 Apartments building, which would rise on a site framed by Highway 55, South Shore Drive and Revere Lane North. The project, which also includes up to 10,600-square-feet of retail space and 12 townhome units, won unanimous support from the council, despite a smattering of concerns from neighbors. (2-7-2024 | Finance & Commerce)
 

US to invest $1.2B to expand and modernize electricity transmission
The US DOE has announced an investment of $1.2-billion to expedite the construction of large-scale transmission lines. The initiative aims to address the financial barriers hindering the development of new and upgraded transmission lines. The DOE expects to provide the $1.2-billion investment through federal support under the RFP. (2-7-2024 | Power Technology)
 

BAE Systems coming to Maple Grove in 'Project Libre'
The warehouse project, which has been ground through the city's approval process under the name "Project Libre," will bring 248,000-square-feet of manufacturing, warehouse, office and research and development space to a 30-acre site at Interstate 94 and Highway 169. The Maple Grove City Council is expected to review a $600,000 TIF request next month for soil correction work at the project site. Soil correction needs stem from the site's historical use as a gravel mining operation. (2-8-2024 | Finance & Commerce)
 

Use it or lose it: South Dakota rushing to invest $700M on water projects
South Dakota lawmakers, state agency leaders and water system managers are hustling to spend roughly $700-million in COVID-era funding on water and sewer projects before the federal government claws it back. They money was part of the American Rescue Plan (ARPA), a $1.9-trillion aid package Congress and the Biden administration passed in 2021 to help states recover from the pandemic. ARPA rules require states to allocate all the funds by the end of this year and spend it by the end of 2026 or ship it back to Washington for possible usage by other states. (2-8-2024 | South Dakota News Watch)
 

Josh Helgesen takes over as Greiner's president and CEO
Helgesen joined Greiner in 2001 as an apprentice carpenter. Through the years, he has "demonstrated remarkable leadership, dedication, and an unwavering commitment to our company's values. His ascent to this role is a testament to his exceptional drive and the invaluable contributions he has made to Greiner's success," the company said in a new release. (2-9-2024 | Finance & Commerce)
 

Madison cultural center could break ground in spring
Known as The Center, the nonprofit proposed a three-story, 37,000-square-foot cultural center on a 3.5-acre lot at the 700 block of West Badger Road. In October, officials said they had $3-mollion left to raise before an expected groundbreaking in spring. The Center hopes to pen in the fall of 2025 after construction is completed. The building will have a multi-purpose theater, coworking space, recording studio, art production space and spaces for both youth and seniors, according to the project webpage. (2-9-2024 | Finance & Commerce)
 

State fields design proposals for $48M crime lab in Mankato
State officials are seeking design services for what they call a "state-of-the-art criminal investigation and laboratory" facility in Mankato. The proposed 44,000-square-foot building is funded through design, but the project still needs construction money from the Legislature. (2-9-2024 | Finance & Commerce)
 

Construction Leaders Recognizing & Responding to the Opioid Crisis
The National Association of Home Builders (NAHB) began expressing concern about opioids to its members in 2015-2016. The Association of Union Constructors (TAUC) Spring 2018 edition of TAUC's Construction User magazine was devoted to the opioid issue with the theme "Confronting the Opioid Crisis: What Contractors Can do Today." The industry leaders highlighted in this article were among the earliest to recognize the need to address opioids in the commercial and industrial sectors of the commercial industry. (2-12-2024 | For Construction Pros)
 

FPC Live will break ground on Milwaukee music venue in the spring
In November, the Common Council unanimously approved plans for the 4,500-person venue at 1051 North Vel R. Phillips Avenue. FPC Live, an affiliate of Live Nation, originally had plans for two separate venues for $50-million but amended to make one instead. Miron Construction is the general contractor for the project, having recently submitted requests to construct the foundation and footings for $33.9-million, according to an application. The parcel area is around 252,666-square-feet and crews will build a three-story building, city records showed. The project work area will be around 83,750-square-feet. (2-12-2024 | The Daily Reporter)
 

Projects to Watch

Building Buzz: January 15 - 19

posted on 01.22.2024

We're reading the headlines so you don't have to.

From OSHA civil penalty increases, economic signals to watch for in 2024, to new projects in development and/or under construction, here's what was buzzing in the building world from the week of January 15-19, 2024:

 

CIRCLING BACK
Industrial development planned for Rogers
Three new industrial warehouses may be coming to Rogers, as West Development has plans to build a new development, according to public documents. As detailed in an environmental assessment worksheet, the location of the development would be near the intersection of 147th Avenue and State Highway 101 in Rogers. The plat of land does not have an assigned address and is valued at %5.45-million, according to Hennepin County tax information. The land sits in the northwest submarket of the Twin Cities metro and would back up to the Crow River. It is owned by the Edina-based Schmidt Crow LLC.  (12-27-2023  |  Finance & Commerce)
 

JANUARY 12, 2024
Kowalski's buys site of future store near Ridgedale
Kowalski's had paid $4.9-million in cash for a former Sears auto repair property in Minnetonka, the site of its future grocery store near Ridgedale Mall and the new Dick's House of Sports. The grocer purchased the property from Ridgedale TRS Sub LLC, an entity related to Ridgedale Mall owner Brookfield Properties Retail of Chicago, according to a certificate of real estate value made public. Located at the 12439 Wayzata Boulevard, the property has an estimated value of $8-million for tax purposes, according to Hennepin County records. (1-12-2024  |  Finance & Commerce)
 

Not all carbon-capture projects are created equal
Capturing carbon dioxide from the air or industries and recycling it can sound like a win-win climate solution. The greenhouse gas stays out of the atmosphere where it can warm the planet, and it avoids the use of more fossil fuels. But not all carbon-capture projects offer the same economic and environmental benefits. In fact, some can actually worsen climate change. (1-12-2024  |  Finance & Commerce)
 

OSHA and MSHA civil penalty amounts get annual bump
OSHA's maximum penalties for willful or repeat violations will be increasing approximately 3.2%. The 2024 increases --- to $161,323 from $156,259 in 2023 -- are legally mandated by January 15th each year under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Because January 15th is a federal holiday, this year's changes will be effective starting January 16th. (1-12-2024  |  Safety and Health Magazine)
 

Q & A: Rochester Destination Medical Center effort at its half-way point
The Destination Medical Center is the largest private-public partnership in the state of Minnesota. At its core, the initiative is a promise between the city of Rochester and the Mayo Clinic, the state's largest employer. It was a promise formulated as a 20-year project back in 2014, meaning the partnership is at its midway point. (1-12-2024  |  Finance & Commerce)
 

Sustainability rules move forward for Milwaukee County Projects
Milwaukee County will add a climate scoring system into its annual budget cycle criteria for building projects. The county Capital Improvements Committee (CIC) voted 6 - 1 to approve a scoring system that measured reduced emissions, improved climate resiliency for buildings and co-benefits such as workforce development plans and disaster preparation. The scoring system will be added to existing criteria the county uses when assessing capital projects. (1-12-2024  |  Finance & Commerce)
 

JANUARY 15, 2024
Building codes and reliable infrastructure help prevent snowstorm disasters
Winter storms can easily become billion-dollar disasters as the snow piles up on interstates and collapses roofs and power lines. Yet, while cancelled flights and business interruptions can't be avoided, what turns a snowstorm into a disaster often can be. One snowflake at a time, wet snow can pile up to a weight of 30-pounds per cubic foot on a rooftop --- enough to collapse a structure that is too light or not well designed. Although roof collapses are relatively rare, they are expensive and can take months to repair. (1-15-2024  |  Finance & Commerce)
 

Conflict in Red Sea inflating shipping rates
Since December, global media have reported attacks --- at the Red Sea's southern end --- on commercial ships launched by Yemen's Houthi group. The risk of piracy has caused shipping companies to avoid the route, which involves utilization of Egypt's Suex Canal on the Red Sea's northern end. Crude petroleum input prices were down 13.2%, while unprocessed energy materials were down 9.1%. Natural gas prices rose 1.5% in December. Overall construction input prices are 1.2% higher than a year ago, while non-residential construction input prices are 1.6% higher. (1-15-2024  |  Construction Briefing)
 

Minnesota at the forefront of diversity in engineering
Minnesota has been a leader in the effort to attract more women and people of color to the engineering and design services industry --- and that's good news as firms struggle to fill open positions, a prominent voice of the industry says. Jonathan Curry, executive director of the Minnesota Chapter of the American Council of Engineering Companies, shares thoughts of a recent DEI&B survey, which shows that engineering firms have room for growth when it comes to diversity. The "Diversity Roadmap" survey from ACEC's Research Institute, conducted last summer, attracted responses from nearly 200 ACEC member firms. (1-15-2024  |  Finance & Commerce)
 

Year ahead looks bright for development in Plymouth
Housing construction activity in Minnesota's busiest markets plunged last year, with housing permits down 40% across the 13-county metro plus Rochester. Other sectors were down too, beset by high interest rates and rising construction costs. Plymouth bucked this trend. The city permitted 137 new single-family homes in 2023, up from 99 in 2022. It approved two new multi-family communities last year after green-lighting none in 2022. 2024 is shaping up to be an even bigger year for development activity in Plymouth. (1-15-2024  |  Finance & Commerce)
 

JANUARY 16, 2024
Ahead of legislative session, Walz pitches $982-million in public construction projects
Governor Tim Walz rolled out his $982-million plan for public construction projects, a package that spans from prison fixups to dedicated busway expansions to projects that better connect Minnesotans to their natural resources. He emphasized the ongoing need to fund the construction and maintenance projects. Projects on his list also ranged from wastewater treatment plant replacements to ice rinks to flood mitigation. (1-16-2024  |  Minnesota Public Radio - MPR)
 

Backlog increases amid easing credit conditions
Construction backlog ticked up in December to 8.6 months due to improving financing availability, according to a release from Associated Builders and Contractors. The metric is still rebounding from a backlog level of 8.4 months in October, its lowest point since the first quarter of 2022, according to ABC. The December increase, however, has sparked some confidence among contractors, due to two consecutive months now of backlog growth. (1-16-2024  |  Construction Dive)
 

Construction input prices drop 3 months in a row
Construction input prices fell 0.6% in December largely due to plunging oil prices, according to a new Associated Builders and Contractors' analysis of U.S. Bureau of Labor Statistics Producer Price Index released January 12. The decrease marks three consecutive months of price moderation, though volatility still remains in the cards, said Anirban Basu, ABC chief economist. Overall construction costs remain 1.2% higher than a year ago, while nonresidential construction input prices are 1.6% pricier. (1-16-2024  |  Construction Dive)
 

David Mortenson on Twin Cities construction: More cranes are good, fewer are bad - but it's complicated
David Mortenson's key economic indicator in construction is typically this: More cranes on the skyline are good, fewer are bad. But it's been a bit more complicated than that. Mortenson, chairman of Golden Valley-based M.A. Mortenson Co. --- one of the largest construction firms in the nation --- shared his outlook for the U.S. construction industry at a conference hosted by the Federal Reserve Bank of Minneapolis. (1-16-2024  |  Minneapolis-St Paul Business Journal)
 

Economists highlight 3 major economic signals to watch in 2024
As 2024 unfolds, economists and other experts in the financial and housing markets suggested a few major factors that could be turning points, good or bad, for the U.S. economy. Here are those three themes --- the possibility of a recession, consumer spending slowdown, and a housing rebound --- along with some observations on each of them. (1-16-2024  |  Finance & Commerce)
 

Ramsey County OKs sale of TCAAP outlot in Arden Hills to Ryan Cos.
The board unanimously approved the purchase and sale agreement with Ryan for an outlot, known as Outlot A, of Rice Creek Commons, the name of the redevelopment site for the 427-acre former TCAAP.  Ryan's plan for the site is a build-to-suit property accommodating 400,000 to 600,000-square-feet, according to a county press release. This could include a corporate campus, life sciences offices, a research and development center, or manufacturing and distribution facilities. It's also expected the plan would include on-site retail and restaurant space.  (1-16-2024  |  Minneapolis-St Paul Business Journal)
 

Slumberland outlet to become early education center
Oakdale-based Slumberland Furniture is slashing prices even more than usual at its St. Louis Park Clearance Outlet as it prepares for a new owner to redevelop it into a Spanish immersion early education center. Edina-based TOLD Development paid the furniture retailer $2.6-million for the store at 4140 Excelsior Boulevard. (1-16-2024  |  Finance & Commerce)
 

JANUARY 17, 2024
Construction experts suggest being proactive with ESG policies
As employees, tenants and investors give more consideration to a business's environmental, social and governance (ESG) practices, construction and real estate companies need to be proactive with their strategies and policies, according to industry experts. Traction for ESG concepts is increasing and the willingness of a business to embrace implementation can attract workers, tenants and customers while also providing long-term cost efficiencies. (1-17-2024  |  Finance & Commerce)
 

Five construction tech innovations from CES 2024
The focus of this year's Consumer Electronics Show (CES) showcased ways artificial intelligence and other breakthrough technology can boost productivity while also reversing environmental impacts and future-proofing industries like construction and agriculture. (1-17-2024  |  Construction Dive)
 

McGough pitches senior apartments at Blooming Central Station
McGough Cos. is proposing to build a 164-unit senior apartment building at the Bloomington Central Station development near Mall of America. The proposal represents a further refinement to McGough's previously approved revision to bring three residential apartment buildings to the development in place of three proposed office towers. The plans for this building depart slightly from that approved plan, with fewer units and no retail. The previous plan called for 250- units and 6,000-square-feet of retail. (1-17-2024  |  Minneapolis-St Paul Business Journal)
 

McGough plans senior apartments at Bloomington Central Station
The multi-family senior housing proposal comes from McGough, a Roseville-based group that has played a significant role in developing the area around Bloomington Central Station. It would be at 3001 American Boulevard East and be five stories with 164 units. The adults McGough is targeting with the proposed development are "active senior-adults". The location of the development would be ideal for adults because of its proximity to the amenities offered by the area around Bloomington Central Station. The unique amenities for senior housing might include a golf simulator, a woodworking shop area and small gathering spaces for group activities. (1-17-2024  |  Finance & Commerce)
 

Six trends that could shape US cities in 2024
Flying taxis, high-speed rail, emissions-free buildings and transportation" Some long-held dreams of urban futurists are moving forward in 2024. Cities also are taking advantage of increased federal funding and growing public sentiment to address some long-neglected issues, like the shortage of affordable housing and the impacts of climate change, especially on disadvantaged communities. At the same time, however, cities are confronting problems that stem from the pandemic: empty office buildings, hollowed-out downtowns and public transit systems hobbled by changes in commuting. In some cases, new technologies are providing new solutions; other new technologies, like generative AI, are cause for both optimism and caution by city leaders. (1-17-2024  |  Smart Cities Dive)
 

Study reveals asbestos exposure in construction
A research study has raised significant concerns about the dangers of asbestos exposure for workers in the construction industry. The study, published in the Annals of Work Exposures and Health, reveals that the installation and removal of asbestos cement products pose grave risks, with exposure levels far exceeding the occupational limited in the United States. Key findings of the study include: (1) When asbestos cement pipes are cut, the average exposure to asbestos is over 50 times higher than the short-term limit established by OSHA in the U.S., and (2) Asbestos cement products, including pipes, siding, and roofing, account for more than 90% of global asbestos use. (1-17-2024  |  For Construction Pros)
 

Summit Orthopedics plans 80,000-square-foot facility at Plymouth's Prudential site
The Woodbury-based health care company will be the sole tenant in a new two-story building on the northwest corner of the overall site, confirmed Dan Salzer, director of development for Indianapolis-based Scannell Properties, which is co-developing the site. Located on the corner of Interstate 94 and Bass Lake Road, the Prudential site is also being co-developed by Minnetonka-based Roers Cos. (1-17-2024  |  Minneapolis-St Paul Business Journal)
 

Upper Post Flats fina phase done
The final phase of the 192-unit Upper Post Flats, a $160-million development that turned landmark buildings at the Fort Snelling Upper Post into affordable housing, is complete after years of construction and planning. BKV Group, which designed the project for Dominium, sad the project is finished and "fully open to the public." Military members, veterans, first responders and their families get first priority in housing. The "below-market-rate rents" are designed to be affordable for households earning up to 60% of the area median income, BKV Group said. (1-17-2024  |  Finance & Commerce)
 

Walz pitches $982-million infrastructure bonding plan
Governor Tim Walz proposed a $982-million public infrastructure plan that includes a new headquarters for the Minnesota State Patrol but focuses mostly on the unglamorous task of preserving existing buildings and facilities. The package, known as a bonding bill, will be a centerpiece of the governor's agenda for the 2024 legislative session, which convenes February 12. Walz said his plan would protect drinking water, improve roads and bridges, protect public safety and support safe housing. (1-17-2024  |  Finance & Commerce)
 

JANUARY 18, 2024
330 apartment in Plymouth closer to construction
The Plymouth Planning Commission unanimously recommended approval of the project, which would also offer 12 rental townhomes and a 5,600-square-foot retail building with teh potential for adding another 5,000-square-feet, according to city documents. The vacant site is located on the north side of Highway 55 and along 10th Avenue North. The apartments, townhomes and retail space would be developed on separate newly created lots. (1-18-2024  |  Minneapolis-St. Paul Business Journal)
 

Cottage Grove OKs housing at 'gateway' to city
Roers Cos. has the final go-ahead from the Cottage Grove City Council to build a 144-unit mixed-income apartment building in the southeast metro suburb, a development that promises to boost the city's growing stock of affordable housing and enhance its architectural landscape. Given the site's high-profile location along Highway 61, the City Council urged Roers to go the extra mile on the aesthetics front. The resulting design --- which features a mix of stone, glass, specialty block and fiber cement exterior building materials --- got strong reviews from city officials. (1-18-2024  |  Finance & Commerce)
 

DEED: Minnesota construction job growth outpaces nation
Minnesota's construction industry added 1,200 jobs from November to December and continues to outperform the nation as a whole in that sector, according to data released by the Minnesota Department of Employment and Economic Development. In all, the state saw a net gain of 800 jobs during the past month, DEED said, adding that it was the sixth consecutive month of job growth. Leisure & Hospitality led all sectors with 1,800 jobs added, followed by Trade, Transportation & Utilities (1,500), Construction (1,200), Mining & Logging (300), and Financial Activities (100). In December, Minnesota's unemployment rate fell two-tenths of a percentage point to 2.9%, the U.S. rate remained at 3.7%. (1-18-2024  |  Finance & Commerce)
 

Rapid City Council approves $147M water reclamation facility upgrade
In a major step to upgrade the city's water infrastructure, the Rapid City Council approved $147-million for a second phase of improvements at the Water Reclamation Facility South Plant. The second phase of the project focuses on constructing new reclamation and water waste treatment facilities and processes. It includes the addition of an aeration basin, two secondary clarifiers, a dewatering building, a pumping building and all necessary equipment. The project also aims to improve the resilience of the facilities with backup generators and alternative treatment options. Renovations and modifications to various parts of the existing facility are also planned. (1-18-2024  |  Rapid City Journal)
 

University of Minnesota weighs Williams Arena renovation or replacement
The Pioneer Press, citing university documents, reports that the U of M has hired Populous, a Kansas City-based architecture firm known for its work on sports facilities, for a feasibility study of "possible renovation to Williams Arena (and Maturi) Pavilion or consider new construction." Williams Arena was built in 1928 and has been the home of the Gophers basketball teams for decades. (It also hosted U of M hockey before the construction of Mariucci Arena in the 1990s.) The Populous study will include options for suites and other premium seating, as well as better access for fans in the arena's concourses and restrooms. The current study is just at the conceptual level, though the firm will work with Golden Valley-based Mortenson Co. to prove cost estimates as options. (1-18-2024  |  Minneapolis-St Paul Business Journal)
 

Wisconsin Senate approves bill to shorten commercial building reviews
The Wisconsin State Senate passed several bills that would alter how state and local government would review commercial building plans. Bill supporters promised they would eliminate delays in the commercial building process, while state inspectors said maintaining the current system was important to public health and safety. In 2022, lawmakers introduced a similar set of bills that would have exempted single story buildings with 100,000-square-feet and buildings with 24 plumbing fixtures or fewer from state review. (1-18-2024  |  Finance & Commerce)
 

2024 Projects to Watch: The Twin Cities CRE landscape will be reshaped by these 12 properties
It's no secret the commercial real estate market was a volatile one in 2023. But that won't keep some projects form moving ahead in 2024. The volatility is largely attributed to heightened interest rates, declining values and lack of available financing. But here's some renewed optimism for this year, after the Federal Reserve signaled that interest rates would be cut in 2024. Here's where some of the top properties in the Twin Cities stand and where they're headed in the year to come. (1-19-2024  |  Minneapolis-St. Paul Business Journal)
 

Projects to Watch

Building Buzz: January 8 - 12

posted on 01.11.2024

We're reading the headlines so you don't have to!

From projects in development and under construction, economic outlooks for 2024, and new federal rulings on independent contractor classifications, here's what was buzzing in the building world from the week of January 8-12, 2024:

 

Construction outlook for 2024 a mixed bag as contractors struggle to attract, retain labor
Labor has been consistently cited as a top challenge for general contractors, an issue that long predates the Covid-19 pandemic. The construction industry added 17,000 net jobs in December, part of what was a stronger-than-expected jobs report released late last week by the U.S. Bureau of Labor Statistics. Between December 2022 and December 2023, industry employment grew 2.5%, to 197,000 new jobs, according to an analysis of BLS data by industry trade group the Associated Builders and Contractors. Still, the unemployment rate in construction continues to outpace the national unemployment rate, at 4.4% in December compared to 3.7%. (1-8-2024  |  Minneapolis-St. Paul Business Journal)
 

Labor crunch will continue to squeeze contractors
Nearly 8 out of 10 respondents to a new Associated General Contractors of America survey said they have a hard time filling salaried or hourly craftworker positions, but 69% still said they anticipate a "total increase" in headcount. A fifth of respondents said it will get harder to hire in 2024. Nonetheless, contractors will need those workers. In 14 of 17 sectors, respondents anticipated the dollar value of project they compete for to increase this year compared to 2023. (1-8-2024  |  Construction Dive)
 

Plan for 255 new homes advances in Lakeville
TEG Land Holdings LLC, an entity related to Twin Cities Land Development, wants to develop 255 new homes, including 127 attached townhome lots, 99 detached "villa" lots, and 29 single-family home lots, on a site north of 205th Street and west of Interstate 35. The Lakeville Planning Commission unanimously recommended approval of a revised preliminary plat for the development, known as Ritter Meadows. The plans will be up for review at the January 16th City Council meeting. (1-8-2024  |  Finance & Commerce)
 

Costco plans a store in Ostego along I-94
Costco Wholesale Corp. wants to build a store on a vacant property on the edge of Albertville and Ostego near Interstate 94. The retailer submitted a development application to the city of Ostego, according to City Administrator Adam Flaherty. City Planner D. Daniel Licht said the application will be tentatively considered at the February 5th Planning Commission meeting. The site is north of 60th Street Northeast between Interstate 94 and Maciver Avenue North. The development application shows the building will be about 164,000-square-feet and includes a parking lot with 938 stalls. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

LGBTQ+ workers expect more inclusivity from employers
Every year, more and more companies seem to recognize Pride Month. But a recent analysis shows that LGBTQ+ workers expect more than this once-a-year acknowledgement from their employers. In fact, some employees actually criticize such behavior as mere pinkwashing. So, what do LGBTQ+ workers want? In 2023, the jobs website Indeed conducted a survey of LGBTQ+ full-time workers from across the U.S., and the results provide a clear picture of their needs. (1-9-2024  |  Finance & Commerce and The Conversation website)
 

Met Council hikes Southwest Light Rail budget to $2.86B
Officials leading the Southwest Light Rail project said that the cost to build a 14-mile train link between downtown Minneapolis and Eden Prairie has risen to $2.86-billion. The rail line's price tag has steadily increased over the years as its timeline has stretched out. What was once pitched as a $1.3-billion project, to be completed by 2018, is now expected to take until 2027. The ballooning budget has drawn scrutiny from legislators and auditors. A report last year criticized the Council for not holding contractors accountable for overruns. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

Minneapolis called a model for housing development
Other cities take heed of Mineapolos and its zoning regulations. At least that's what researchers at the Pew Charitable Trust are saying in a report published last week. The report by the nonprofit's housing team says Minneapolis' zoning code adjustments have helped it better tackle housing issues while other major U.S. cities have fallen behind. (1-9-2024  |  Finance & Commerce)
 

New federal rule on independent contractors could trigger wave of lawsuits against businesses
Companies will potentially have a harder time classifying millions of workers as independent contractors under a new Department of Labor final rule. The new rule expands the so-called "economic reality" test so that employers have to weigh a wider variety of factors when classifying workers, including how much control the worker has over their schedule and their employment, how permanent their employment is, and how integral their work is to the work of the company, among the six factors employees must consider. (1-9-2024  |  Minneapolis-St. Paul Business Journal)
 

New labor rule tightens worker classification standards
The Biden administation entacted a new labor rule that aims to prevent the misclassification of workers as "independent contractors," a step that could bolster both legal protections and compensation for millions in the U.S. workforce. The Labor Department rule, which the administration proposed 15 months ago, replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors. Such workers neither receive federal minimum wage protections nor qualify for employee benefits, such as health coverage and paid sick days. (1-9-2024  |  Finance & Commerce)
 

Construction planning numbers end 2023 on a high note
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, closed out the year with a 3% jump in December, buoyed by data center growth, according to the Dodge Construction Network. Over the month, both commercial and institutional planning improved 1.0% and 6.1% respectively. The gain reversed the 1.4% drop in November, when a slowdown in commercial planning pushed the index down, accroding to Dodge. That indicates support for construction activity this year, said Sarah Martin, associate director of forecasting for Dodge Construction Network. (1-10-2024  |  Construction Dive)
 

Duluth hotel development site sold in $2.7M deal
In a deal worth more than $2.7-million, Kinseth Hospitality Cos. has sold land in Duluth to D & D Real Estate Holdings, according to public documents. According to the documents from the Duluth Planning Commission, the land is for a four-story, 100-room TownPlace Suites by Marriott on Sundby Road north of West Page Street. The tract of land that has been traded is one that's been highly contested throughout the years. Neighbors and environmentalists are worried about the harm the development may cause to a creek near the land. The Duluth Planning Commission opted to require an Environmental Assessment Worksheet, or EAW, for the property. (1-10-2024  |  Finance & Commerce)
 

Eagle Brook gets green light for megachurch in Plymouth
After a divided vote from the Plymouth City Council, Eagle Brook has a clear path forward to construct a 64,000-square-foot church on a 53-acre site at 17910 Chankahda Trail. The megachurch threatened to sue the city if the council rejected the plans. The Council's 3-3 vote on a resolution opposing the project means the project can advance. Residents opposed to the project cite concerns about traffic, the size and scale of the building, and more. City staff recommended denial of the church's request for rezoning, preliminary plat, site plan, and other approvals. (1-10-2024  |  Finance & Commerce)
 

New Northtown owner plans more improvements at Blaine shopping mall
Felix Reznick, principal at 4th Dimension Properties, is adding an Imagination Station play area for children to the former D'Moxi space across from the food hall. The Imagination Station has a climbing area and other topys to keep kids busy. It doesn't pull a profit but could help attract more shoppers.  (1-10-2024  |  Minneapols-St.Paul Business Journal)
 

New St. Cloud mall owner: 'The dinosauers are dying'
The new owner of the 1980s-vintage Midtown Square mall in St. Cloud has big plans to turn the half-empty retail center into a multipurpose hub for everything from indoor sports to flex light industrial uses. An entity related to Brait Capital of Edina paid $8-million for the mall property at 3333 Division Street West, according to a certificate of real estate value made public. Lighthouse Management Group Inc. of St. Cloud is the seller. (1-10-2024  |  Finance & Commerce)
 

Biden awards $623M to states, tribes to build EV charging network
The Biden administration is awarding $623-million in grants to help build an electric vehicle charging network across the nation. Grants will fund 47 EV charging stations and related projects in 22 states and Puerto Rico, including 7,500 EV charging ports, officials said. Congress approved $7.5-billion in the 2021 infrastructure law to meet President Biden's goal of building out a national network of 500,000 publicly available chargers by 2030. The charging ports are a key part of Biden's efforts to encourage drivers to move away from gasoline-powered cars and trucks that contribute to global warming. (1-11-2024  |  Finance & Commerce)
 

Downtown Rochester luxury apartment fetches $37M
A luxury apartment building in downtown Rochester has a new owner in Northland Investment Corp., according to public documents. The Maven on Broadway, a six-story, 154-unit multifamily complex was purchased by the Newton, Massachusetts-based firm for $37.7-million. The seller is another Massachusetts group, Berkshire Resiential Investments, which is based in Boston. (1-11-2024  |  Finance & Commerce)
 

Milwaukee could finally take control of and redevelop Northridge Mall
The city of Milwaukee could take control of the abandoned Northridge Mall by the end of January and demolish the building in the summer. If the city acquires the vacant property through foreclosure, it would be an end to years-long litigation between the city and mall owner U.S. Black Spruce Enterprises. After the city issued a raze order in 2019, the mall has been the subject of city and state court cases, and incidents of both trespassing and arson. (1-11-2024  |  Finance & Commerce)
 

Lawsuit between Doran Special Projects, St. Paul apartment complex ends
A lawsuit between Bloomington-based developer Doran Special Projects LLC and Marshall Lofts LLC, the Hopkins-based business behind a St. Paul apartment complex, is over. Court records show that Doran moved to dismiss the lawsuit on December 12, 2023, after the case was referred to mediation on August 7, 2023. Doran first filed the lawsuit in June alleging Marshall Lofts never paid Doran for $812,798 worth of contracting work done at 2105 Marshall Avenue and 250 Finn Street in St. Paul. Those addresses are the locations of an apartment complex, also called Marshall Lofts, as well as an adjacent residential rental building called The Finn.  (1-12-2024  |  Minneapolis-St Paul Business Journal)

Projects to Watch

Building Buzz: December 25 - 29

posted on 01.02.2024

We're reading the headlines so you don't have to. From projects under construction, federal funding allocations, and employment reports, here's what was buzzing in the building world during the week of December 25 - 29, 2023:

 

Wayzata Schools buys Optum subsidiary Solutran's ex-Plymouth headquarters
The school district bought the two-story, 32,000-square-foot building, located at 13305 North 12tth Avenue for $7.75-million, according to a public real estate filing with the Minnesota Department of Revenue. (12-20-2023 | Minneapolis / St. Paul Business Journal)

Big deals found in multi-family, but 2023 still lags behind 2022 market
There is one thing to be said about the 2023 multi-family / apartment market: Nothing came close to the sale of the Berkman apartments in 2022. The Rochester apartment has kept its spot in the history books as one of, if not the highest single-asset multi-family transaction in Minnesota. 

But this year's champion for highest-value transaction belongs to Weidner Apartment Homes for the eight-building Inspire Apartments in Minneapolis' Uptown, which, if they had been bought at their taxable value of $162-million, would have put it up near the Berkman transaction. But they were bought at the relatively modest price of $111-million, a bargain for the new owners. (12-22-2023 | Finance & Commerce) 

McAlister's Deli is headed to Mankato, then Twin Cities with 10-unit agreement
McAlister's Deli is making its Minnesota debut in Mankato with plans for further expansion in the state. The national deli concept joins the state with a 10-unit franchise agreement. Other target markets include Apple Valley, Burnsville, Rochester, Albert Lea, Faribault, New Ulm, Northfield, Owatonna, and others. McAlister's Deli will land at 1860 Adams Street next year. (12-22-2023 | Minneapolis - St. Paul Business Journal)

Milwaukee receives $4M for safe street upgrades
Milwaukee will receive a $4-million grant from the U.S. Department of Transportation as part of its "Safe Streets and Roads for All" grant program. The city will use the funds for a safe street program tied with goals to eliminate traffic deaths by 2037. (12-22-2023 | Finance & Commerce)

A wave of minimum wage increases is on the way in 2024
The highest minimum wage by state ringing in the new year will be Washington, at $16.28, followed by California, at $16. The District of Columbia saw its minimum wage increase to $17 on July 1, 2023. Many states have either scheduled increases into minimum wage laws or have pegged them to inflation, triggering automatic bumps in their minimum wage rates. Minnesota increases to $10.85 for employers with annual gross revenues of at least $500,000 and $8.85 for employers will revenues of less than $500,000. (12-22-2023 | Minneapolis / St. Paul Business Journal)

Wells Fargo economists: No 'Goldilocks' economy for you!
Wells Fargo economists may not be running victory laps just yet, but their call earlier this year for big rate cuts in 2024 is now closer to market consensus. Or rather, market consensus is moving closer to Wells Fargo's outlook. The bank's economists shed more light this month on their outlook for the year ahead, reiterating their earlier call that the economy will slip into recession in mid-2024. (12-22-2023 | Minneapolis - St. Paul Business Journal)

Electric vehicles owners and solar rooftops find mutual attraction
When Jim Selgo moved to his home in Goodyear, Arizona in 2019, he quickly had rooftop solar installed, having had a positive experience with solar at his previous home. Less than a year later, motivated to take more action to address climate change, he said, Selgo bought his first electric vehicle, a Nissan Leaf. He hasn't paid for electricity or gasoline since. (12-25-2023 | Finance & Commerce)

Office market sluggish in 2023
"Flight to quality" continues to be the term to define the 2023 office market, with many companies scrambling to reduce their footprint, but to do so in buildings with the best amenities available/ But the year's capital market tells a different story. The second half of 2022 was described to Finance & Commerce as "pencils down" as interest rates continued to increase. That narrative continued this year, as transactions overall saw a dramatic fall. 2023 saw one transaction that breached $100-million. The next hightest? $50-million. Some office buildings, left behind by their traditional users, have been purchased to be converted into an apartment or a warehouse. (12-25-2023 | Finance & Commerce)

Solar canopy approved at Wisconsin union training center
Greenfield officials gave a thumbs up to the International Brotherhood of Electrical Workers (IBEW) Local 494's proposal to build a solar power canopy over part of its training center parking lot. The union wants to install a 104-foot by 20-foot solar structure to train apprentices and offset 90% of the training center's electrical usage, according to a city staff report. The size of the structure, which will be wide enough to cover 11 parking spaces, is based on the building's electrical usage. (12-25-2023 | Finance & Commerce)

DJR founder Dovolis urges architects to take risks
Is Dean Dovolis an architect or an inventor? Dovolis, founder and owner of Minneapolis-based DJR Architecture, appears to be embracing both roles as he devises new ways to team with partners to tackle affordable housing, economic and other disparities, and urban agriculture. (12-25-2023 | Finance & Commerce)

Construction economists cautiously optimistic for 2024
As the end of 2023 edges closer, experts shared their views on the state of the construction industry going forward. According to experts from the nation's leading contractor associations, certain parts of the construction industry fixated on manufacturing and infrastructure will continue to see prosperity, while some challenges like labor shortages will still likely be universal in 2024. One thing experts rejoiced about? The slowing of the Federal Reserve's interest rates; in mid-December, Jerome Powell, chair of the Fed, announced rates would stay between 5.25% and 5.55%. (12-26-2023 | Finance & Commerce)

Industrial market dipped in 2023
Transaction volumes were down across the board in commercial real estate. But the industrial market faired better than other specialized classes. The high points of this year's market didn't come close to last year's highest trade. In a 17-property portfolio trade from Artis REIT to Capital Partners and Investcorp, last year's highwater mark was $248.9-million. This year's was a seven-building recapitalization deal work $88-million between PCCP and Eagle Realty, while Capital Partners stayed invested in the property. (12-26-2023 | Finance & Commerce)

CP, West Development pitch three-building industrial project in Rogers
A pair of developers are proposing a new three-building, 557,000-square-foot industrial development in Rogers. The project, led by a joint venture between St. Louis Park-based West Development and Minnetonka-based CP Development, would be situated on a 45-acre vacant property along Highway 1010 and abutting the Crow River. (12-27-2023 | Minneapolis / St. Paul Business Journal)

Industrial development planned for Rogers
As detailed in an environmental assessment worksheet, the location of the development would be near the intersection of 147th Avenue and State Highway 101 in Rogers. The plot of land does not have an assigned address and is valued at $5.45-million, according to Hennepin County tax information. (12-27-2023 | Finance & Commerce)

Notable projects finished in 2023
Heading into 2023, Minnesota's construction industry wasn't exactly bubbling over with enthusiasm about market conditions for the coming year. Even though any eagerness was tempered by rising costs, labor shortages, and other headwinds, the past year saw work completed on some key public and private sector projects. Let's take a backward glance at a few of those projects. The list isn't comprehensive, but it offers a snapshot of notable projects in both the vertical and highway sectors. (12-27-2023 | Finance & Commerce)

WisDOT's year in review touts 350 road safety projects
The Wisconsin Department of Transportation (WisDOT) was busy in 2023, including completing the final leg of the Zoo Interchange and securing hundreds of millions of federal dollars coming to state road projects. Among the transportation agency's year in review was a third year of state transportation funding increases, money for studying more passenger rail routes and more than 350 projects funded for safety and road improvements. Several key items on WisDOT's end of year list were tied to the influx of federal funding for infrastructure projects. (12-27-2023 | Finance & Commerce)

The year in clean energy: Wind, solar and batteries grow despite economic challenges
Led by new solar power, the world added renewable energy at breakneck speed in 2023, a trend that if amplified will help Earth turn away from fossil fuels and prevent severe warming and its effects. Clean energy is often now the least expensive, explaining some of the growth. Nations also adopted policies that support renewables, some citing energy security concerns, according to the International Energy Agency. These factors countered high interest rates and persistent challenges in getting materials and components in many places. (12-27-2023 | Finance & Commerce)

Checking in on RiverNorth development plan
ION is building a $30-million manufacturing facility as part of a planned company expansion and relocation. Located on a 1.1-acre parcel at 201 West Broadway Avenue between Second Avenue North and Washing Avenue North, the new building will have 5,000-square-feet of office space on the ground floor and a much larger amount of production space on two floors above. An aboveground parking structure will attach to the building's rear. Groundbreaking is expected in October 2024. (12-28-2023 | Finance & Commerce)

Kelly Doran, Twin Cities real estate developer, passes away at 66
Twin Cities real estate developer Kelly Doran, who founded both Doran Cos. and Doran Group, died overnight on December 28, 2023, following a fight with cancer, a press release from the Doran Group announced. He was 66 years old. Doran, born in Duluth, was a leader in the multi-family housing industry, as well as in retail space. In 2007, he founded the powerhouse commercial real estate firm Doran Cos., which has three divisions --- Doran Development, Doran Construction and Doran Management. (12-28-2023 | Finance & Commerce)

New Milwaukee museum shifts groundbreaking as it pursues fundraising goals
The museum wants to move the current building from 800 West Wells Street and build a 200,000-square-foot, six-story museum in the nearby Haymarket neighborhood. At a Milwaukee County board meeting, museum officials said deferred maintenance added up to $100-million and noted aging infrastructure such as failing elevators, escalators and a water tower. The new $240-million natural museum will break ground next spring. (12-28-2023 | Finance & Commerce)

Big projects to watch in 2024
The coming year could be eventful for at least some construction businesses in Minnesota. State and federal funding is advancing housing projects, infrastructure work, and other construction in the metro area and beyond. In December, Minnesota Housing announced nearly $350-million worth of funding for affordable housing statewide. Labor costs, workforce availability, inflation and other concerns are still hanging in the air. But in general, the outlook for 2024 is "slightly more positive" than it was for 2023, according to a recent Associated General Contractors of Minnesota survey of construction businesses. (12-29-2023 | Finance & Commerce)

Minnesota State Office Building project will cost $454M; here's what that price includes
The Pioneer Press has a report on the big-dollar renovation and expansion of the 290,000-square-foot building near the State Capitol. The project, already underway, promises to expand the building to more than 456,000-square-feet, repair decaying plumbing and electrical systems, and improve accessibility and security for the 90-year-old property that serves as offices for state House members and the Minnesota Secretary of State. The nearly $500-million overhaul of the Minnesota State Office Building isn't expected to be finished until 2027, but expect to hear a lot about it between now and Election Day 2024. (12-29-2023 | Minneapolis / St. Paul Business Journal)

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