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Projects to Watch

Building Buzz: December 18 - 22

posted on 12.26.2023

We're reading the headlines so you don't have to. From projects under construction, federal funding allocations, and employment reports, here's what's buzzing in the building world from the week of December 18 - 22, 2023:

Highway 210 project receives federal funding
The upcoming Highway 210 / Washington reconstruction projects in Brainerd received federal funding. U.S. Senator Amy Klobuchar and Tina Smith announced on December 11th, the U.S. Department of Transportation awarded $25-million to the project. The money is provided through the department's Multimodal Project Discretionary Grant program, and it will allow the Minnesota Department of Transportation to address safety concerns along the thoroughfare. The project --- estimated around $45-million --- is planned for 2026-2027 and will see the reconstruction of Highway 210 / Washington Street between Baxter Dreive and Pine Shores Road in Brainerd. (12-11-2023 | Brainerd Dispatch)

Catalyst Construction breaks ground on Mayfair Medical Commons
Milwaukee-based developer Irgens announced construction has started for Mayfair Medical Commons, a new 45,823-square-foot medical building in Wauwatosa. The building is part of a larger redevelopment planned for a prime infill site south of the Research Drive entrance into the Milwaukee County Research Park, officials said. The project calls for a two-story, steel frame structure with a flexible interior design. Ample signage will give many users bidding opportunities, less than a mile from the Milwaukee Regional Medical Center and access to Interstates 94 and 43. The Sigma Group provided civil engineering services. (12-12-2023 | Daily Reporter)

Enclave Cos. pitches 200 apartments, day care in Bloomington
Enclave Cos. is proposing to construct a 201-unit apartment building and detached day care in Bloomington. The Fargo, North Dakota-based developer is expected to present plans to the Bloomington Planning Commission next week. The project is proposed for a vacant site located at 6701 West 78th Street, which once housed a Life Time Fitness facility, according to city documents. The property owner is a business entity tied to Chanhassen-based Life Time. (12-15-2023 | Minneapolis / St. Paul Business Journal)

Minneapolis secures $20M for traffic safety measures
The U.S. Department of Transportation recently awarded the city of Minneapolis $20-million as a part of its "Safe Streets and Roads for All" grant program. The city will put the funds toward its Vision Zero program, which aims to reduce traffic collision deaths to zero by 2027. (12-15-2023 | Finance & Commerce)

The 2021 infrastructure bill put $5B toward and EV-charging network. The first station just opened.
On the western outskirts of Columbus, Ohio, two doors down from a Waffle House, is a truck stop that, as of recently, has the first electric vehicle charging station in the country to be financed in part by the 2021 federal infrastructure law. The Pilot Travel Center at I-70 and U.S. 42 has four charging ports. They are part of a partnership between General Motors and Pilot that the companies say will lead to chargers being installed at 500 Pilot and Flying J locations. (12-16-2023 | Fast Company)

Woodbury authorizes $800k clubhouse renovation at Eagle Valley Golf Course
The Woodbury City Council authorized a contract on December 13th with Minneapolis-based Kraus-Anderson Cos. Inc. to carry out an $800,000 renovation to the clubhouse at Eagle Valley Golf Course. The contract still needs to be signed by Woodbury's mayor and city administrator, which Dan Morris, recreation enterprise manager for the city, said he expected to happen this week. The $810,561 will come from the course's $2.8-million annual budget. (12-16-2023 | Minneapolis / St. Paul Business Journal)

Affordable housing project in Edina advances with MN Housing funds
Solhelm Companies' plan to bring 89 units of affordable housing to Edina appeared to be stuck in the mud just six months ago, but things are looking up as it's one of the big winners in the latest round of funding announced by Minnesota Funding. The project, known as 5780 Lincoln, will offer homes affordable to households at 50% or less the area's media income. The new apartment building will replace the old Londonderry Office Park at 5780 Lincoln Drive, as previously reported. (12-18-2023 | Finance & Commerce)

Alliant Energy completes 623-acre solar project in Wisconsin
Madison-based Alliant Energy announced the completion of a 99-megawatt solar array in Waushara County. "The completion of this project is a major accomplishment that will deliver safe, reliable, cost-effective energy to our customers for decades," Ben Lipari, assistant vice president of resource development at Alliant, said in a statement. (12-18-2023 | Finance & Commerce)

Convenience store chain making $151M of Wisconsin capital investments
Convenience store chain Kwik Trip plans to invest more than $151-million in an expansion of its Wisconsin operations, state officials announced. The company, according to the Wisconsin Economic Development Corp., intends to: (1) Expand its dairy, commissary and baking facilities in La Cross; (2) Purchase an renovate a commercial office building in Onalaska; and (3) Construct a new satellite distribution center. (12-18-2023  |  The Construction Broadsheet)

Glen Taylor to donate $172-million for Minnesota and Iowa rural development
Glen Taylor, the state's richest man and the current majority owner of the Minnesota Timberwolves/Lynx organization as well as the owner of the Star Tribune, announced that he is donating $172-million to support people in southern Minnesota and rural communities across Minnesota and Iowa. The donation is the first phase of a larger charitable plan to support childhood education, rural community-revitalization, environmental sustainability and the social well-being of families in need and aims to create financial framework to support these and other causes. (12-19-2023 | Minneapolis/St Paul Business Journal)

Kowalski's is headed to Ridgedale Center
Local grocer Kowalski's Markets is heading to Minnetonka's Ridgedale Center. The Woodbury-based grocery store will be located in the 25,600-square-foot space previously occupied by Sears Auto Center. The family-owned and -operated grocery store is set to open sometime in 2025. (12-19-2023 | Minneapolis / St. Paul Business Journal)

Minnesota DLI alleges 'widespread wage theft' on 19 projects
The Minnesota Department of Labor and Industry said that is has uncovered 'widespread wage theft and unlawful practice' on 19 construction projects throughout Minnesota, including the Viking Lakes mixed-use development in Eagan. As a result of a its investigation, the department said its seeking $2.4-million in back wages and liquidated damages from Property Maintenance & Construction LLC (PMC, also known as Property Maintenance and Construction Inc), and Advantage Construction Inc. (12-19-2023 | Finance & Commerce)

Prudential campus redevelopment clears Met Council hurdle
The Metropolitan Council's Community Development Committee recommended approval of a comprehensive plan amendment for a proposed redevelopment of the former Prudential campus in Plymouth, but the project didn't make the committee's list of sites recommended for environmental cleanup money. The amendment re-guides 75-acres on the site at 13001 County Road 10 from "commercial office" to "mixed use," and accommodates "future redevelopment of the site with a mixture of multifamily housing, retail/commercial uses, and a medical technical business park," according to a committee staff report. (12-19-2023 | Finance & Commerce)

Ex-Viking Tim Baylor buys South Minneapolis Burger King for mixed-use plan
Minneapolis-based JADT Development Group, led by founder and CEO Tim Baylor, plans to develop a mixed-use building at the site of a South Minneapolis Burger King that shuttered during the pandemic. The fast-food joint is now being torn down after the property sold last week for $1.15-million, according to a public real estate filing with the Minnesota Department of Revenue. The public filing notes that the restaurant will be transformed into a new 75-unit apartment building with first-floor commercial space. (12-19-2023 | Minneapolis / St. Paul Business Journal)

Beacon Interfaith project in Maplewood gets funding boost
Beacon Interfaith, a nonprofit affordable housing developer, announced 40 new units will be built in Maplewood after the group secured state funding for the project. The state funding is a part of the historic one-time $1.3-billion investment signed in by Governor Tim Walz in May. More specifically, the $14.8-million awarded to Beacon Interfaith is a part of $250-million designated for financing affordable multi-family housing, according to a press release from Beacon. The 40 homes will be a community called Gladstone Crossing at 1375 Frost Avenue. Half of the home will be designated for people with incomes that are 30% of the area median income, while the other half will be for people with incomes that are 50% AMI. (12-20-2023 | Finance & Commerce)

Luxury housing project in Inver Grove Heights lands $60-million in financing
Trident Development has closed on financing for a 244-unit luxury residential community that it's planning in Inver Grove Heights, near the Eagan border. JLL Capital Markets announced it worked on behalf of St. Cloud-based developer Trident to secure a $45-million construction load from Grand Forks, North Dakota-based Alerus Financial and $15.14-million in mezzanine financing from Minot, North Dakota-based Centerspace for its apartment and townhome project called Avalon Apartments and Townhomes (12-20-2023 | Minneapolis - St. Paul Business Journal)

Minnesota's 2022 work fatalities similar to 2021
The number of fatal work injuries on Minnesota jobsites in 2022 was roughly unchanged from with the previous year, according to a report released by the Minnesota Department of Labor and Industry. DLI, citing information from the U.S. Department of Labor, reported that 81 fatal work-injuries were recorded in Minnesota in 2022, up from 80 in 2021. The state's 2022 fatal-injury rate is 2.8 fatalities per 100,000 full-time-equivalent workers, which is unchanged from the 2021 rate. (12-20-2023 | Finance & Commerce)

New bill would require school districts to follow competitive bidding process
Wisconsin school districts would have to use competitive bidding for construction projects worth $150,000 under a proposal introduced by lawmakers. Assembly Bill 723 would require public school boards to enter the competitive bidding process when constructing new buildings and facilities, according to the bill text. The bill would raise the amount required for local governments to solicit competitive bids for public works projects, instead of awarding them directly, from $25,000 to $50,000. Some highway projects would be excluded. (12-20-2023 | The Daily Reporter)

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

Biden's Milwaukee visit highlights Black-owned businesses, lead pipe replacement
President Joe Biden toured a Black-owned plumbing company that's replacing lead pipes, a nationwide initiative that's been supported by his administration with billions of dollars, during his visit to the battleground state of Wisconsin. The trip was designed to spotlight a surge in federal government assistance for Black-owned small businesses during Biden's term and to highlight his administration's efforts to ramp up investment in distressed communities. (12-21-2023 | Finance & Commerce)

Enclave pitches 201-unit apartment in Bloomington
If Enclave Cos. has its way, Bloomington will soon be 201 apartments richer, as the developer plans to build on a lot that has been vacant for 17 years. The building, located at 6701 West 78th Street, would be five stories with 201 units. A detached, 11,000-square-foot day care center would also operate on the property, according to city documents. (12-21-2023 | Finance & Commerce)

Minnesota construction jobs up in November
Minnesota's construction industry added 300 jobs in November and has now seen growth in seven of the past eight months, according to data released by the Minnesota Department of Employment and Economic Development (DEED). Overall, the state gained 9,500 jobs from October to November, the fifth straight month of growth, DEED said in a press release, adding that it's the largest increase since January and "well higher than the national rate" of job growth. Also in November, Minnesota's labor force decreased by 7,433 workers for a participation rate of 68.3%. The U.S. rate is 62.8%. (12-21-2023 | Finance & Commerce)

Why Minneapolis' 2040 Plan didn't fix housing's 'missing middle'
Cody Fischer became an infill housing developer in Minneapolis in large part because of the Minneapolis 2040 plan. That comprehensive plan, which went into effect in 2020, is heralded in planning circles as one of the biggest reforms to what's consistently identified as a significant barrier to building more housing in America: the elimination of exclusively single-family zoning. (12-21-2023 | Minneapolis - St. Paul Business Journal)

Down year for multi-family but improvement could be near
When asked how he felt the market for apartments and other multi-family real estate fared in 2023, Northmarq's Ted Bickel had two words to describe it: "Choppy and slow." While there are other factors, interest rates are the first thing he points to when looking for a cultprit for the "choppy and slow" environment. (12-22-2023 | Finance & Commerce)

Wisconsin to spend $414M on wastewater, storm infrastructure
Wisconsin Governor Tony Evers, along with the state's Department of Natural Resources, announced that the Badger State would send $414,4-million to 84 municipalities through its Clean Water Fund program. The funding will help municipalities across the state build needed water infrastructure, according to the release. Projects that reduce phosphorus discharges and address aging equipment are included in the awards, with a focus on small and disadvantaged communities. (12-22-2023 | Construction Dive)

Labor & Workforce

Workplace Law Updates for the New Year

posted on 12.20.2023


Article updated 12-28-2023

A number of important workplace updates have been put in place via the Minnesota Department of Labor and Industry (DLI) over the past few months and quite a few go into effect in the new year. We've gathered them here for commercial constructors to review and take action as needed.

 

EARNED SICK AND SAFE TIME
Minnesota's earned and sick and safe time (ESST) law goes into effect January 1, 2024. The DLI continues to add resources and materials to help employers comply with the new law.

Resources recently added include new ESST FAQs, a recorded webinar presentation, an outreach toolkit for organizations and individuals who would like to help build awareness about the ESST law, and a sample employer notice that must be provided by employers to employees starting by January 1, 2024 when the ESST law goes into effect, and an ESST workplace poster (available in 18 languages).

 

MINIMUM-WAGE RATE
Effective January 1, 2024, Minnesota's minimum-wage rates will increase from $10.59 to $10.85 an hour for large employers and from $8.63 to $8.85 an hour for other state minimum wages.

Learn more about minimum-wage rates.

 

PAY-HISTORY BAN EFFECTIVE JANUARY 1, 2024
Employers in Minnesota may no longer ask a job applicant about their pay history beginning January 1, 2024. This law is being implemented, overseen, and enforced by the Minnesota Department of Human Rights.

 

NEW EMPLOYEE NOTICES
Veterans Benefits and Services

• All employers with more than 50 full-time employees are required to display this poster in a location where employees can easily see it. Required as of January 1, 2024

Earned Sick and Safe Time
• All employers must provide this notice to each of their employees by January 1, 2024 or at the start of employment if employment starts after January 1, 2024. Employers that have an employee handbook must include the notice in the handbook. Required as of January 1, 2024

Nursing Mothers, Lactating Employees. and Pregnancy Accommodations
• All employers must provide this notice to each of their employees at the time of hire and when an employee makes an inquiry about or requests parental leave. Required as of July 1, 2023

Employer-Sponsored Meeting or Communications
• All employers must post notice of employees' rights under this law by August 31, 2023. State law prohibits from taking or threatening to take any adverse employment action against employees who decline to attend employer-sponsored meetings concerning religious or political matters. Last updated August 2023

Minimum Wage Rates
• All employers are required to display this poster in a location where employees can easily see it. Last updated October 2023 

How to get the above mentioned poster notices?
1.)  Download and print the posters individually or in a five-poster PDF file. Posters fit on 8.5" x 11" paper.
2.)  Order posters online.
3.)  Email a request to dli.post@state.mn.us with a business name, contact name, mailing address, phone number and the name and amount of each poster needed.
4.) Order posters by phone at (651) 284-5042. When ordering, include a contact name, mailing address, phone number, and the name and amount of each poster needed. 

 

NOTICE OF CORRECTION TO PREVAILING-WAGE RATES
Affects highway and heavy regions

The commissioner of the Minnesota Department of Labor and Industry certified prevailing-wage rates for highway and heavy construction projects in all 10 Minnesota regions November 20, 2023.

This notice regards a correction to the rates for Region 2 (Job Code Group 306), Region 3 (Job Code Group 304), and Region 7 (Job Code Group 304). This correction is for all public works highway and heavy contracts advertised for bid on or after this date. 

The revised wage rate determinations and all other wage rate determinations are available online.

 

UPDATE ADDED DECEMBER 28, 2023
The Department of Labor and Industry (DLI) commissioner has certified prevailing-wage rates for commercial construction projects in all 87 counties, effective December 26, 2023. 

These rates were identified by annual voluntary survey of commercial construction projects in Minnesota collected by DLI.

See wage-rate determinations on DLI's website here

 

NOTICE OF TRUCK RENTAL RATE CERTIFICATION
The commissioner of the Minnesota DLI has announced a certification of minimum truck rental rates for state-funded construction projects in Minnesota.

The new rates are effective Monday, December 18, 2023. View the minimum truck rental rates here.

 

NEWS RELEASE
DLI seeks $2.4-million in back wages and liquidated damages in enforcement action against construction contractors

Minnesota's DLI has initiated a contested case against Property Maintenance & Construction LLC and Property Maintenance and Construction Inc (PMC) and Advantage Construction Inc (Advantage) by filing a Notice and Order for Hearing at the Office of Administrative Hearings. In the notice, DLI alleges PMC and Advantage failed to pay workers as required by law, resulting in back wages owed in the amount of approximately $1.2-million and an additional equal amount of approximately $1.2-million as liquidated damages.

DLI's investigation of PMG and Advantage uncovered widespread wage theft and related unlawful practices on 19 separate construction projects, including the Viking Lakes project in Eagan, Minn., during its investigative audit period of March 4, 2019, to June 5, 20222. DLI identified 25 employees that it alleges were jointly employed by PMC and Advantage and had not been paid the wages they were due, including overtime wages. DLI's findings include that many employees were paid off the books and in cash for a substantial portion for their employment and were not provided with earning statements as required by law. 

DLI also alleges the violations were willful. As described in the notice, PMC's owner displayed knowledge of overtime laws while flouting them and refusing to pay workers the overtime wages they were owed. Additionally described in the notice, the owner discouraged workers from reporting violations of the law and participating in DLI's investigation. As a result, DLI imposed a civil penalty of $25,000 for these willful violations of the law. Read the full press release here.

Industry Stats & Reports

Hard Hats, Harder Times: Construction’s 2024 Landscape

posted on 12.11.2023

As we wrap up 2023 and peek into 2024, let's have a real talk about the construction landscape. It's been a rollercoaster, hasn't it? With buzzwords like "recession" and "economic downturn" flying around, it's natural to feel uneasy about the future of the industry. But, we're a resilient bunch, and there's a lot we can do to navigate these choppy waters.

First off, the construction sector isn't immune to the hiccups of inflation, labor shortages, and those pesky supply chain disruptions. And yes, the experts are predicting more slowdowns thanks to those supply chain issues, rising costs, and high-interests rates. These challenges are not disappearing overnight, so its' crucial to stay sharp and find ways to keep the projects rolling smoothly.

The big question isn't if contractors will weather the storm, but more how well they do it. Let's dive in:

 

LABOR SHORTAGES
Everyone is feeling the pinch here. Finding and keeping great workers is tough, and the construction industry is feeling the squeeze particularly hard on this one compared to other industries. The demand for skilled hands is sky-high, but there isn't enough skilled workers to go around. Last year's survey from the AGC of American showed 91% of contractors struggled to fill positions. And guess what? In order to keep up with demand, about 546,000 new workers need to be brought on.

 

SUPPLY CHAIN DISTRUPTIONS
Oh, COVID-19, the gift that keeps on giving, right? The supply chain is still trying to bounce back, and the Build America, Buy America Act is adding more pressure with sourcing U.S.-made materials, especially for those businesses working on federally funded projects. We're talking longer wait times for materials to arrive.

 

INFLATION & MATERIAL COSTS
Here's a number for you: construction input prices have jumped 37.7% since 2020. This year's increase is 4.9%, a bit less scary than 2021's 23.1% hike. The price tags on materials are all over the place, with some, like lumber, actually dropping, while others, like concrete and construction equipment, are on the rise. This has made renting equipment more popular than ever.

 

THRIVING DURING UNCERTAIN TIMES
So, how can we keep our heads above water? Adaptation is the name of the game. Many industry vets have weathered economic downturns like this before, and there's wisdom in that experience. Look for cost-cutting strategies, protect your assets, keep informed, and stay optimistic.

 

STAY ON TOP OF TRENDS
Knowledge is power, folks. Keeping up with industry trends and news helps contractors prepare and tweak their strategies. Think articles, reports, newsletters --- all that good stuff to keep your business in the loop (and MBEX is a great go-to source for all of the above).

Another great place to gain insights into the 2024 construction season, tune in to Construction Executive's 2024 Construction Economic Update and Forecast on Wednesday, December 13 at 1:00pm CST. Led by Anirban Basu (chief economist for Associated Builders and Contractors) and crafted with commercial constructors in mind, he will offer insights on challenges facing the industry, sharing data and insights on labor expenses, materials pricing, market-sector growth and construction spending, as well as the latest on inflation and if, and/or when we'll actually see a recession. Register for this one-hour, free webinar here.

 

PLAN FOR THE UNEXPECTED
Expect hiccups with supply chains. Here are a few pro tips:

• Order early to avoid delays.
• Have a backup plan for material shortages/delays to keep projects on schedule.
• Look for alternative suppliers and subcontractors, as well as better rates.
• Use security measures like cameras to protect your materials.

 

FOCUS ON YOUR TEAM
A project is only as good as one's team. Investing your workforce is key; here's a few ideas on how to support them:

Competitive Pay: It's not just about the paycheck; it's a sign of your company's value. The best talents expect the best compensation. 
Embrace diversity: Diversity isn't just good for ethics; it's good business. More diverse companies tend to be more profitable.
New Recruitment Avenues: Hit up job fairs and trade shows to find fresh talent, with both inexperienced and well-versed backgrounds.
Supportive Culture: A great work environment keeps great workers. Think safety, fun, and growth opportunities.

 

LOSS PREVENTION
With high material costs, safeguarding your assets is crucial. Security cameras and professional monitoring not only deter theft but might also snag your business an insurance discount. Protecting your assets is key to maintaining profitability.

 

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No one is denying we're in a tough spot right now, but this industry is resilient (remember how we powered through the thick of COVID-19?). By facing these hurdles head-on, staying united, and being smart about costs, our industry is poised to emerge stronger than ever.

Roll up those sleeves, finish 2023 strong, and let's show 2024 what we're made of.

Building Buzz: September 2023

posted on 10.25.2023

Look for our monthly Building Buzz feature that captures noteworthy construction happenings and people of note featured throughout the month in publications such as Finance & Commerce and the Minneapolis / St Paul Business Journal

In short, we're keeping an eye on the headlines so you don't have to.

Below are headlines of note from September 2023.

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Finance and Commerce

PROJECTS - Proposed, In Action & Milestones

Avinity Plans Conversion for St. Paul Assisted Living Facility
A Presbyterians Homes & Services affiliate plans to convert its newly acquired assisted living property in St. Paul to affordable homes for seniors and employees. Avinity, an entity related to Roseville-based Presbyterian Homes, paid $9 million for the 105-unit property at 2235 Rockwood Avenue in the Highland Park neighborhood of St. Paul, according to a certificate of real estate value make public. The seller is StuartCo Property Management, which first opened the community in the 1990s, according to Avinity.

$13M Veterinary Clinic Proposed in Wisconsin
Ethos-Wisconsin Veterinary Referral Center (e-WVRC) presented plans to the Pewaukee Plan Commission for a new $13 million, 25,704-square-foot pet hospital to replace its current facility in Waukesha. WVRC wants to build a 24-hour facility offering emergency and specialty pet care at the east side of Pewaukee Road and south of Interstate 94. The building will have space for a 50,000-square-foot addition, project plans showed. WVRC is working with Keller, Inc. to design the project and move through the city permitting process.

New Viking Lakes Apartment Project Gets Positive Reception
The Minnesota Vikings are winless on the field so far this season, but the football team's owners are unbeaten at Eagan City Hall when it comes to approvals for their latest apartment project in the city. MV Ventures, a development company owned by the Wilf family, owners of the Vikings, wants to construct 327 apartments in three buildings on part of the Viking Lakes campus near Dodd Road and Interstate 94 in Eagan. The campus includes retail, residential, hotel and office buildings, and is home to the Vikings' headquarters and training facility. 

Police Operations Building Nears Construction in Apple Valley
The city of Apple Valley hopes to start construction next spring on a new police operations building near Eastview High School. The city's Planning Commission recently reviewed plans for the 25,000-square-foot building, which will rise on the former McNamara Contracting site at 14325 Flagstaff Avenue, west of Eastview High School, and south of the current central maintenance facility. Designed by Oertel Architects, the building will offer a 15,000-square-foot fleet storage area capable of holding 30 vehicles, and a 10,000-square-foot area for support and office spaces. The office and support area will include locker rooms, showers, a roll call room, offices, conference room, and storage areas. 

Sick to Break Ground Next Year on Bloomington Campus Expansion
German sensor maker Sick USA has closed on the land it needs to build a 144,000-square-foot expansion of its technology campus near the Mall of America in Bloomington. Sick didn't disclose the sale price and a certificate of real estate value for the land sale hasn't been made public as of September 25. The company said its plans to begin construction in spring 2024 on part of its campus at 2601 American Boulevard East.

Wisconsin Church Finds New Purpose as Affordable Housing
St. John's Lutheran Church, one of Madison's oldest churches, is getting ready to tear down its current space and build a 10-story, 130-unit affordable apartment building. Real estate experts said the church is part of a wider trend of religious groups turning their underused property into housing to help combat a nationwide shortage. 

$400M Mixed-Use Development Gets Final Approval in Wisconsin
The Wauwatosa Common Council approved Barrett Lo Visionary Development's $400 million mixed-use development near the former Boston Store at Mayfair Mall. The development is made possible through nearly $58 million in financing help from the city. Barrett Lo will build around 918 apartments and 12,000-square-feet of commercial space in three phases with the expected groundbreaking date in 2025. The project is on six acres of land, which the developer said is situated mostly across surface parking lots. Construction phases of mid-rise structures will take between 10-12 years, the developer added. 

Church Plans to Convert Former LA Fitness Center
The former LA Fitness center at 2420 Cleveland Avenue North in Roseville is the latest large commercial building in the Twin Cities set to get a new life as a church. Everyday Community and Church, now based in St. Anthony, closed September 14 on the $6.4 million purchase from Reality Income Corp. in San Diego, California. 

Board Considers New Visions for North Commons Park
Two design options --- a $35 million renovation and addition and a $49 million new construction plan --- have emerged for the planned North Commons Park makeover in Minneapolis, a project that could be "transformational" for the North Side, supporters say. At issue is a plan to turn the 26-acre park at 1801 James Avenue North into a hub for arts, sports, recreation and community activities. Working with Fihan Design and Architecture and Locus Architecture, the Minneapolis Park and Recreation Board is asking the public to weigh in on the options. 

59-Acre Mixed-Use Technology Hub Proposed in Wisconsin
An Illinois-based developer wants to build a technology hub on nearly 60 acres of the Pabst Farms property in the city of Oconomowoc. Wingspan Development Group, a sister company of general contractors Nicholas & Associates, presented their plan before the Oconomowoc Common Council. In March, the developer bough 59 acres of Pabst Farms immediately east of Fleet Farm and north of Interstate 94.

Developer Starts Construction of 130 Single-Family Apartments in Wisconsin
An Illinois developer in late summer broke ground on a 130-unit apartment project in Milwaukee's south suburb of Oak Creek, and developers said this will further introduce the national trend of built-for-rent housing to Wisconsin amid a tight real estate market. Arlington Heights, Illinois-based Heyday is building 22 buildings across 47 acres at the southeast corner of Puetz Road and 27th Street. Each building holds four, six or eight units in single-story ranch-style homes. Each unit will have a two-car garage. It took developers 18 months to plan and push the proposal through the city permitting process. 

Construction of Luxury Couture Tower Accelerates in Milwaukee
Elected officials, organized labor representatives and developers met at the ongoing Couture tower project as a highlight of the North American Building Trades Union (NABTU) national tour at the Milwaukee lakefront. Construction of the high-rise has accelerated, and the developer said residents will move in by April 2024. Currently, the Couture concrete core is at the 33rd level of the luxury apartment tower. The concrete deck has been poured to level 30, precast panels are up to level 21 and exterior glass is up to level 16. 

Blue Line Up for $18.6M in Fixes and Upgrades
The Metropolitan Council is looking at an $18 million-plus bill to repair and update a portion of the Blue Line light rail corridor in Minneapolis and Bloomington. Railworks Track Systems recently submitted the low bid of $18.64 million to replace track and signal components for the light rail line, which runs from downtown Minneapolis to the Mall of America. A second bid came in slightly higher at $18.646 million. 

CORE X Plans Big Project in Bridgewater Township
New Jersey-based cold storage provider CORE X Partners is proposing a major expansion in Bridgewater Township, a Northfield-area community of 1,900 residents. The two-phase project would bring up to 370,000-square-feet of new cold storage space to a mostly agricultural area served by rail and 140th Street, according to an Environmental Assessment Worksheet released. Also included in the project are rail siding, septic, well and roadway improvements.

Capitol Planning Body Seeks Proposals for Mall Redesign
With the Minnesota State Capitol freshly restored and a major renovation in the works for the nearby State Office Building, the Capitol Area Architectural and Planning Board is turning its attention to the mall area around the sateae's most iconic building. The board hopes to update mall area plans with help from an outside consultant team. In a new request for proposals, the board is seeking a term to "build upon" the 2040 Comprehensive Plan for the Capitol area and update the Capitol Mall Redesign Plan, which dates back to the mid-1980s.

First Prefabricated Bridge in U.S. Installed in Wisconsin
A new kind of bridge installation with time and labor-saving benefits made its debut in the United States for the first ti,e in Eau Claire. The Eau Claire County Highway Department installed a bridge with prefabricated parts on County Highway V. Australian company InQuik Bridging Systems manufactured bridge components in a Virginia factory and shipped them to western Wisconsin, where highway department crews placed the structure and poured concrete under the watch of structural engineers.

$16M Adaptive Reuse Event Space Proposed for Former Wisconsin Factory
A Chicago-based developed has proposed a $16 million redevelopment plan of the former Kearney and Trecker manufacturing building with the goal of turning it into an events venues in West Allis Baum Revision has proposed a development agreement with the city to renovate around 41,000-square-feet of space at 6771 West National Avenue, according to city officials. The building was put up in 1918 and served as a foundry, officials added. 

'Passive house' apartment project planned in Minneapolis
An up-and-coming local developer with a passion for carbon-smart multifamily housing wants to replace a 115-year-old triplex in south Minneapolis with an apartment building designed to passive house standards. Footprint Development's latest project, which is up for Planning Commission review, would bring 32 apartments and 1,553-square-feet of commercial space to the triplex site at 3561 Minnehaha Avenue, which is at the northeast corner of Minnehaha Avenue and 36th Street. 

Timberland finishes luxury apartments
Timberland Partners --- a Minneapolis-based real estate investment, management and development firm --- has completed a 246-unit luxury apartment building in Eden Prairie. The community at 8300 Commonwealth Drive is the company's largest development to date, according to a press release. 

Eagle Brook Church still in growth mode
Eagle Brook Church didn't have to stray far from its temporary home at Wayzata High School to find a place for its new $39 million campus in the Twin Cities suburbs. The campus, Eagle Brook's 10th permanent location in the Twin Cities and Rochester, will rise on an existing farm site on Chankahda Trail, just north of Meadow Ridge Elementary School in Plymouth. The 54-acres site is a mere two miles from Wayzata High School, where Eagle Brook has been holding services since 2018.

Enclave's redevelopment project in Edina clears environmental hurdle
Enclave's mixed-used redevelopment plan for the former Macy's Furniture Store location in Edina has reached another milestone with the completion of an environmental reviews. The Minnesota Environmental Quality Board said that an Environmental Impact Statement is not needed for the project, which would bring 460 housing units and 300,000-square-feet of office and mixed-used space to the one-time retail site at 7235 France Avenue South. The 8-acre site is on the east side of France Avenue north of Gallagher Drive. 

Report Blames Deadly Iowa Building Collapse on Removal of Bricks and Lack of Shoring
A partial building collapse in Iowa that killed three people in May was caused by the removal of brick and inadequate shoring of the 116-year-old structure, according to a report released by officials. The 113-page investigative report by two engineering companies also blamed the collapse on improper understanding of a structural bearing wall, inadequate oversight of repairs and a history of improper maintenance. 

 

PEOPLE

Former Inmate Rebuilds Life Through Work in Construction Trades
Like many electrical apprentices, John Bailey spends his time bending pipes, putting in wall outlets and wiring panels. He works with journeymen to decide how to best handle the job and counts on more-experienced electricians for mentorship. Before Bailey found a new life in the trades, he has been incarcerated twice in Wisconsin.

 

COMPANIES

How Ryan was able to Deliver PrairierCare Expansion Early
A youth and young adult psychiatric hospital in Brooklyn Park is poised to help more patients during a historically busy month now that its expansion project is Brooklyn Park has crossed the finish line ahead of schedule. The expansion added 30,000-square-feet to PrairieCare's inpatient hospital at 6400 Zane Avenue North. Minneapolis-based Ryan Cos. US Inc. announced that it delivered the expansion in August, about three weeks early. The expansion --- which adds 30 inpatient beds and will allow PrairieCare to serve an additional 1,000 patients each year --- comes at a time when "there is historically an increased need" for psychiatric services, Ryan said.

WSB Expands Baxter Office
WSB, a Golden Valley-based design and consulting firm, has expanded its office in Baxter, Minnesota. The company. which opened its first Baxter office in 2015, has relocated to the Johnson Center at 14275 Golf Course Drive in Baxter. The new 2,360-square-foot space "represents WSB's further investment in the central Minnesota region," according to a press release. 

Spotlight: Architecture firm has 'bittersweet' post-Floyd rise
As 2020 began, Damaris Hollingsworth was looking forward to a good year for her fledging architecture firm, Minneapolis-based Design by Melo. Three of Design by Melo's five projects went on hold, however, when the pandemic hit in March. Other firms were letting people go for the same reason. Hollingsworth considered applying at Target or Starbucks to pay bills while keeping smaller design jobs --- and her firm --- going. Them, just as suddenly, her business took off despite the pandemic. New work rolled in from July through December. It continued into 2021, Design by Melo's first seven-figure year, and beyond.

Building a Winery on the Iron Range took Vision and a Web of Support
Is there a skill common to schoolteachers and successful restaurateurs? Northern Minnesota wine entrepreneur Tia Marie believes the ability to "read the room" she developed in 28 years as a teacher has factored into her success as the owner of two Minnesota-focused wine bars: Smoke on the Water, a production wine and cider facility located on Trout Lake in Coleraine; and Unwined Up North, the "super tiny" wine spot she opened in her hometown of Grand Rapids a few years earlier.

 

INDUSTRY NEWS - Local & National

Permits for Single-Family and Small Multi-Family Surge in September
Builders of single-family homes are enjoying their best September in nearly 20 years, but apartment construction activity remains slow as planned multi-family units fell further behind last year's pace during the month. In September, cities in the 13-county metro area have issued permits for 656 new single-family houses (up 80% from a year ago), and 820 planned multi-family units (down 33%), according to a monthly report released by the Keystone Report. Overall, planned units are down 6.75% from September 2022.

Recent Floods Heighten Concerns That Dams May Not Be Built for Climate-Induced Storms
The recent floods in Massachusetts that put a few dams at risk have raised concern that structures may increasingly be at risk as the region is hit by stronger and wetter storms. There are thousands of dams across New England and many were built decades if not centuries ago. often to help power textile mills, store water or supply irrigation to farms. The concern is they have outlived their usefulness and climate change could bring storms they were never built to withstand. 

Construction Jobs Rise in 45 States Over Last 12 Months
The number of workers on construction sites rose from August 2022 to August 2023 in 45 states and the District of Colombia and fell in five states, according to an Associated General Contractors (AGC) analysis of U.S. Bureau of Labor Statistics data. Texas added the most construction jobs year over year, with 21,1000 jobs (or a 2.7% increase). California came in second with 15,600 additional jobs (1.7% increase), and the rest of the leading states were Ohio (11,600, or 5%), Georgia (10,600, or 5%), and Pennsylvania (10,500, or 4.1%). 

Wisconsin's Workforce Development Programs Recognized Nationally
Wisconsin's workforce development programs were recognized nationally by touring labor organizations, who are gearing up to change construction's culture and address employment hurdles as the federal government raked in money for infrastructure projects. 

New Reports See Mixed Bag for Construction Economy
Demand for construction loans is down as the industry in the Twin Cities and beyond struggles with rising interest rates and tighter lending standards, but total construction spending is up from last year thanks largely to federal money, according to new reports. In its Midyear Construction Trends report, commercial real estate and investment management company Jones Lang LaSalle (JLL) said financing constraints "have driven a rapid decline in construction starts over the last quarter,...As interest rates are expected to peak near year-end 2023, construction starts will continue slowing well in 2024."

Construction Industry Adds 22,000 Jobs in August, Warns of Infrastructure Red Tape
The construction sector added 22,000 jobs in August, but the industry was still hounded by a skilled worker shortage as unemployment stayed around 3.9%, according to an Associated General Contractors (AGC) analysis. AGC reported construction spending rose 0.7% in July despite a downturn in most infrastructure investment categories. AGC officials cautioned progress on many public infrastructure projects was likely undermined by added layers of red tape left behind by the Biden administration. Meanwhile, average hourly wages jumped again, and demand was ever-growing for private projects. 

AGC Advises 'Zero Tolerance' for Cannabis on Construction Sites
Worried about the impact of marijuana legalization, Twin Cities commercial building contractors will rely on a drug-free policy unless guidance from the courts and the state changes. The AGC has advised members to use a zero-tolerance for cannabis approach on their job sites under the "safety-sensitive" exclusion of the marijuana law.

2040 Plan Court Ruling Creates More Uncertainty in Minneapolis
The recent court ruling related to the city of Minneapolis' 2040 comprehensive plan will create more uncertainty and have a chilling effect on construction of new housing in the city. That's what some local developers and homebuilders are saying in reaction to the ruling from Hennepin County District Court Judge Joseph Klein, who ordered the city to revert to its 2030 Comprehensive Plan within 60 days. 

Sustainable: More interior designers embrace sustainable materials
In designing more sustainable buildings, architects should pay closer attention to the materials they use. Carpets, flooring, paneling, paint and other products often carry toxins or unrecyclable materials such as plastics. Greener alternatives exist, but the design industry has embraced them slowly. 

Cities across Wisconsin ramp up new construction in 2023
Milwaukee's construction growth is already visible from large scale projects on the lakefront and downtown. But now it's also visible in Wisconsin's record books. The city so far this year has $449.3 million in new construction, adding 1.14% to last year's value of $39.4 billion, according to the August 9 Wisconsin Department of Revenue (DOR) Net New Construction Report. 

 

PROJECTS OUTSIDE FIVE-STATE AREA

Performing Arts Center Opens at Ground Zero After Two Decades of Setbacks and Changed Plans
In a mammoth room behind translucent marble walls, workers are setting the stage for the World Trade Center's newest addition. It isn't another office tower, nor is it a monument, at least explicitly, to the memory of the September 11 terror attacks. It's a theater complex. 

$50M Renovation of White House Situation Room Complete
The White House Situation Room --- a space of great mystique and even greater secrecy --- just got a $50 million facelift. Actually, "room" is a misnomer. It's a 5,500-square-foot, highly secure complex of conference rooms and offices on the ground floor of the West Wing. 

Largest Renewable Energy Infrastructure Project in U.S. Breaks Ground
An energy infrastructure project bigger than the Hoover Dam is how Hunter Armistead describes the $10 billion venture his company will be overseeing during the next three years. As the chief executive of one of the world's largest wind and solar development companies, Armistead said breaking ground on Pattern Energy's SunZia transmission line marks a major milestone as the United States looks to make good on promises to address climate change and bolster the nation's already overwhelmed power grids as demand increases and weather events become more extreme. 

Some U.S. Airports add sensory-inclusive facilities and operations
Andrea Nissen is trying to prepare her 65-year-old husband, who has Alzheimer's disease, for a solo flight from Arizona to Oklahoma to visit family. She worries about travelers and airport officials misinterpreting his forgetfulness or habit of getting in people's personal space, and feels guilty about not be able to accompany him.

 

Minneapolis / St Paul Business Journal

PROJECTS - Proposed, In Action & Milestones

After Mixed Feedback, Plan for 355 Rentals in Maple Grove Heads to City Council
The project, which includes a mix of 350 apartments and townhomes and a new commercial building, on a 79-acre site at 17425 101st Avenue North, moved past the city's Planning Commission. But it didn't get wholehearted endorsement'; some commissioners said they'd prefer owner-occupied housing instead.

Minneapolis College Begins $22.5 Million Renovation of Downtown Business School Center
Minneapolis College and Metropolitan State University will start a $22.5 million renovation project this month to upgrade their jointly run business school center in downtown Minneapolis. The Management Education Center, located at Old Harmon building at 1300 Harmon Place, is a dual business school and entrepreneurial hub occupied by Minneapolis College St. Paul-based Metro State University, which are both under the umbrella of the Minnesota State public college system. 

Wilfs Ready Plan for 300+ Apartments at Viking Lakes Development
The developer behind the 200-acre Viking Lakes campus in Eagan is getting ready to pursue its final residential phase with more than 300 new apartments. A business entity tied to Eagan-based MV Ventures, a company owned by the same Wilf family that owns the Minnesota Vikings football team, is returning to the city of Eagan as it plans new buildings for the residential development known as the Viking Lakes Residences. 

Wellington's Plan to Redevelop Vacant Perkins Sit in Minneapolis Seeks TIF
The developer behind a $54 million plan to redevelop the site of a former Perkins restaurant located along Interstate 94 in Minneapolis is seeking tax increment financing. The project, led by St. Paul-based Wellington Management Inc., includes a six-story building with 155 units of affordable housing and 800-square-feet of ground-floor commercial space. The city's Planning Commission Committee of the Whole will consider a plan establishing a new TIF district to help finance construction costs. 

Everyday Community and Church Buys Former LA Fitness Site in Roseville
A shuttered LA Fitness location in Roseville has been sold to a Twin Cities church that plans to renovate the property into a worship space. Everyday Community and Church paid $6.4 million to buy the 55,000-square-foot property from Realty Income Corp. of San Diego, according to a certificate of real estate value. 

Windsong Farm Golf Club Building Second 18-Hole Course
Windsong Farm Golf Club is doubling down on its commitment to golf with the addition of a new 18-hole course, at a time when other private clubs are looking beyond golf to attract new members. Construction on the new 18-hole golf course at Windsong Farm Golf Club in Independence, Minnesota, began four months ago and when complete, Windsong will be the only private club in the Twin Cities with two 18-hole courses.

Greater MSP Vying for $75M to Make Minnesota an AI-Enabled Global MedTech Hub
Greater MSP and a consortium of big Minnesota employers are vying for a chunk of $500 million in federal funds to make Minnesota an artificial intelligence-enabled "Smart MedTech" hub. It's part of the U.S. Economic Development Authority's Tech Hubs Program, which aims to grow new innovation centers throughout the country to strengthen domestic economic and national security. The program was part og the CHIPS and Science Act of 2022, which earmarks $10 billion over five years. 

Empty Bloomington Office Building Could See New Life as Indoor Golf Venue
A pro golf instructor plans to convert an unoccupied office building in Bloomington into a recreation facility featuring golf simulators and restaurant space. The plan by Ernie Rose includes adding dining space and 23 golf simulators on the first two floors of the 45,000-square-foot Creekridge Office Center. Including acquisition and buildout, the project is expected to cost $6 million, Rose told the Business Journal

Minneapolis City Council OKs Roof Depot Site Sale to EPNI
A plan by East Phillips Neighborhood Institute (EPNI) to buy the former Roof Depot site in south Minneapolis for $11.4 million has been approved by the Minneapolis City Council. The local community group has been planning an urban farm at the site, located near East 28th Street and Longfellow Avenue, for years. The 230,000-square-foot building is a former Sears warehouse that city officials once marked for demolition, to be replaced by a Public Works water maintenance facility. 

Johnson Brothers Liquor Plans Warehouse at Former Blue Cross Blue Shield of Minnesota HQ
A local wine and spirits distributor is proposing to redevelop the former Eagan headquarters of Blue Cross Blue Shield of Minnesota with a 460,000-square-foot warehouse facility and other uses. St. Paul-based Johnson Brothers Liquor Co. plans to relocate its corporate headquarters and Minnesota distribution operations to Eagan as part of a plan to transform the former BCBS site, at 3535 Blue Cross Road, and the surrounding area. This comes after BCBS confirmed earlier this year that it was putting its headquarters up for sublease.

New Balance is Opening Factory Store at Twin Cities Premium Outlets
Twin Cities Premium Outlets is expected to get Minnesota's first New Balance Factory Store later this year. The 4,000-square-foot store should open in the fourth quarter of 2023, ahead of the holidays, featuring a full range of performance footwear and apparel for men, women and children, according to an announcement from the Eagan shopping center. 

Minnesota Made Hockey in Edina Plans New Training Center, Consolidation
Minnesota Made Hockey is proposing to build a 10,240-square-foot training facility on the same property as its existing hockey and ice facility in Edina. The new building would be built at the southern portion of Minnesota Made Hockey's 5.55-acre site at 7300 Bush Lake Road West, which is currently home to a 63,311-square-foot facility containing two ice rinks, according to documents submitted to Edina's planning department. 

Life Time Unveils New Pickleball Club Concept in Chanhassen
Life Time Group Holdings Inc. is expanding from pickleball courts to a full-scale pickleball club, as announced in a groundbreaking announcement. The fitness club's first-ever pickleball club will be built in the company's home city of Chanhassen and is expected to be completed in early 2024. It will be built in a 25,000-square-foot building adjacent to Life Time's current fitness club at 2901 Corporate Place. The pickleball club will feature eight indoor and seven outdoor courts, as well as a viewing area, lounge and dressing rooms. Construction is being lead by Life Time's own construction firm, Life Time Construction. 

Grand Casino Mille Lacs and Hinckley hotels getting multimillion-dollar facelifts
Grand Casino's two largest hotels, the Mille Lacs and Hinckley hotels, are getting multimillion-dollar makeovers. The renovation project, which is starting this month, was announced by Onamia-based Mille Lacs Corporate Ventures (MLCV), the parent company of Grand Casinos. According to the press release, the hotels' complete transformation is part of MLCV's plan to revitalize its assets. 

$300 million plan to redevelop Plymouth's Prudential site to return to city
A $300 million plan to redevelop the 75-acre Prudential site in Plymouth will go before the city's Panning Commission on September 6. Commissioners are expected to consider a comprehensive plan amendment to accommodate the redevelopment plan, which is being led by co-developers Minnetonka-based Roers Cos. and Indianapolis-based Scannell Properties. 

North Loop Green in Minneapolis gears up for early 2024 opening
The development team behind North Loop Green, the mixed-use project under construction right next to Target Field, is gearing up for its next milestones as it eyes opening early next year. Since construction crews topped off of North Loop Green's 35-story residential tower in early August, attention is turning to residential leasing, signing retail tenants, and filling a few more offices, said Bob Pfefferle, managing director at Hines. 

Lawsuit says construction of hotel in Edina's Pentagon Village is off
The development of a hotel planned for Edina's Pentagon Village that has been in the works for years is facing yet another snag. Rise Construction Services LLC, the construction are of Rise Modular, terminated its contract with Fifth Side Lodging LLC to build the hotel, according to a lawsuit filed by Fifth Side Lodging LLC in U.S. District Court on August 28.

 

COMMERCIAL REAL ESTATE

Caribou Coffee Signs 100,000-Square-Foot Lease at Maple Grove's Arbor Lakes Business Park
Caribou Coffee Co has signed on to lease over 100,000-square-feet at Maple Grove's Arbor Lakes Business Park. Edina-based Endeavor Development, which is leading the development of Arbor Lakes, announced the new lease with the Brooklyn Center-based coffeehouse chain the last week of September. Caribou is expected to move into the new space at the start of 2024, according to Josh Budish, principal of Endeavor.

 

INDUSTRY - Local & National

Construction Firms Cite Labor as Biggest Challenge Despite Slowdown in Starts
The U.S. construction market is starting to shift in the wake of less work from the private sector and ramped-up spending in industries like infrastructure and manufacturing, bolstered by federal incentives. And while supply-chain issues and higher materials prices have normalized since the peak of the COVID-19 pandemic, inflation, higher interest rates and --- most notably --- labor shortages are challenging company leaders across the industry. 

Projects to Watch

Building Buzz: August 2023

posted on 10.03.2023

We're keeping an eye on the headlines so you don't have to.

Below are projects, as well as noteworthy construction happenings and people of note, featured throughout the month of August in both Finance & Commerce and the Minneapolis / St Paul Business Journal.

NOTE: Post was formally named "Make the Most of These Featured Projects".

 

Minneapolis / St Paul Business Journal

North Loop Green Tower Hits Construction Milestone as Builders Top Off Structure
Finance & Commerce reports on a topping-off ceremony for the project's 35-story residential tower, meaning the last beam has been put in place. Construction on the tower, which includes 350 market-rate units and 100 short-terms rental units, is expected to finish next year. North Loop Green, which Hines began construction on two years ago, also includes an adjacent 14-story office building with 350,000-square-feet of space.

Sherman Associates buys St. Paul's Landmark Towers as part of plan to convert to apartments
Minneapolis-based developer Sherman Associates Inc. has purchased the Landmark Towers office building in downtown St. Paul as part of its plan to convert it into 187 apartments. The deal closed August 18 for $8.15 million, according to an electronic certificate of real estate value filing. It comes after the St. Paul City Council approved a #21 million tax increment financing plan to assist the conversion of the 213,000-square-foot office building.

Forest Service rejects Lutsen expansion to preserve tribal rights and natural resources
After nearly a decade of planning a $60 million skiing expansion into the Superior National Forest, Lutsen Mountain's owners have been told no by the U.S. Forest Service. According to a report from the Duluth News Tribune, Superior National Forest Supervisor Thomas Hall said he has decided to reject the permit because of the project's impact on natural resources and treaty rights concerns raised by Ojibwe bands. The Lutsen expansion concept has been in the works since 2014 to provide new and exciting terrain and increase amenities for skiers, as it already claims the title as Minnesota's largest downhill ski resort in Minnesota.

Mendota Heights racket club expands plans with more pickleball, padelball, squash courts
A pickleball, squash and padel club in Mendota Heights that had previously announced plans for indoor courts, now expects to get bigger --- and head outside, as well. Glenn Baron, a partner leading The Heights Racquet and Social Club, recently requested the city consider amending its zoning code to allow the facility to build outdoor courts to complement its existing plans for nine indoor courts. The Mendota Heights Planning Commission supported the amendment, which will soon go to the City Council. 

Construction of Tepetonka Club near Willmar inches closer following recent court ruling
The construction of the Tepetonka Club, a high-end golf course planned for a site about 10 miles north of Willmar, Minnesota, is closer to coming to fruition following a recent court decision. In April, a judge dismissed a lawsuit that aimed to block the sale of the 187 acres owned by Cedar Hills Century Farm Inc. to Tepetonka Club's management. In 2021, Dean Thorson sued his brother and sister --- as well as Cedar Hills Century Farm itself --- saying the $1.2 million price was too cheap at roughly $6,400 an acre. In the April ruling, the court found no basis to void the land sale, kicking off the next step of performing an environmental review for the proposed Kandiyohi County golf course, which was originally slated to open in May 2024.

Mortenson lands contract for $1.5 Athletics stadium in Las Vegas
M.A. Mortenson Co. has won the contract to build a new stadium for the Oakland Athletics in Las Vegas, the latest billion-dollar sports project for the Golden Valley-based construction firm. The A's, which plans to move to Nevada in the next few seasons, announced that Mortenson and Nevada construction company McCarthy would lead the project. The two companies previously collaborated on a $1.9 billion football stadium in Las Vegas for the NFL's Raiders, which also moved to Oakland.

City of Anoka buys 8-acre manufacturing site to enable redevelopment
The city of Anoka has taken possession of an 8-acre site with the goal of seeing it redeveloped. The city acquired the site, formerly a plastic injection modeling and tooling plant, for $9 million, according to an electronic certificate of real estate value filing made. The seller was listed as an entity associated with North Branch-based Frandsen Corp. The company operated the plant at the location until close it this year.

St Paul OKs TIF deal for Landmark Towers apartment conversion
St Paul's City Council approved a $21 million tax increment financing plan that will assist an office-to-apartments conversion of Landmark Towers, a 213,000-square-foot building in the city's downtown. 

Hollywood Theater reopens in Northeast Minneapolis after years-long renovation
The Hollywood Theater Northeast Minneapolis has reopened as an event space after decades of disuse and years of renovation under a new owner. Andrew Volna, who purchased the dilapidated theater from the city for $1 in 2015 --- acknowledging he paid too much --- recently announced the completion of remodeling.

Capital Partners' lands nVent as tenant for industrial development in Dayton
Industrial real estate firm Capital Partners has already fully leased one of its three speculative industrial developments under construction in the north and northwestern metro, with a 248,000-square-foot deal with electrical company nVent Electric. 

Roers Cos. proposes 152-unit apartment building in Minnetonka
Roers Cos. is proposing a new, 152-unit apartment building in Minnetonka. The Plymouth-based developer presented early plans for the redevelopment of a two-story office building to the Minnetonka Planning Commission. Early plans indicate that the development team plans to construct a six-story residential building at the 2.3-acre site at 1000 Parkers Lake Road, located near Interstate 494 and Highway 12. The office building is currently at the site would be removed, city documents say.

Dave's Hot Chicken, Hope Breakfast Bar to occupy proposed Maple Grove retail development
Maple Grove officials are considering a proposed development slated for Dave's Hot Chicken and Hope Breakfast Bar in the city's Shoppes at Arbor Lake retail district. Edina-based developer Launch Properties is proposing a 5,700-square-foot multi-tenant building on the far north side of the former AMC movie theater's parking lot in between Malone's Bar & Grill and Red Lobster at the southeast corner of Main Street and Elm Creek Boulevard, according to public documents submitted to the planning commission.

Wells Fargo building near Ridgedale Center could be replaced with restaurants, smaller branch
A proposed redevelopment of a Wells Fargo branch across from Ridgedale Center in Minnetonka would bring more shopping and dining options to the bustling retail corridor. One behalf of Wells Fargo, Florida-based developer OneCorp Global submitted a concept plan for the removal of an existing Wells Fargo building and the construction two new mixed-used buildings for a Wells Fargo branch, two restaurants and two retailers, according to public documents filed with the city.

Minnesota Vikings will get new turf at U.S. Bank Stadium
The Minnesota Sports Facilities Authority plans to replace the playing surface at U.S. Bank Stadium next year for the second time since the Minnesota Vikings began playing there in 2016. Minnesota Public Radio has a report on the plans by the MSFA, which published a request for qualifications for contractors. No cost estimate for the project was included, though when the turf was last replaced in 2019, the cost of the field was estimated at about $1.5 million.

 

Finance and Commerce

Senior co-op being built in Mound
Adolfson & Peterson Construction has broken ground on Artessa Development's senior housing cooperative project in Mound. Artessa Mound Harbor will offer 52 "high-end senior co-op residencies" for people 62 and older, according to a press release. Indoor and outdoor amenities range from pickleball courts and fitness areas to firepits and grill stations.

Kraus-Anderson completes Ziegler Cat's new store in Dayton
Minneapolis-based Kraus-Anderson recently completed a 17,200-square-foot rental store for Ziegler Cat in Dayton. The new two-story building at 18171 Territorial Road, designed by CNH Architects, replaces the company's former store. 

Sherman buys St. Paul office building it plans to convert to apartments
Minneapolis-based Sherman Associates has paid $8.1 million for the Landmark Towers office building in downtown St. Paul, according to a certificate of real estate value. Sherman previously announced plans to convert the building at 345 St. Peter St. to apartments. The $92 million conversion will turn 211,000-square-feet of largely vacant commercial and office space into 187 market-rate rental units. Sherman said at the time that it hoped to begin construction this fall.

Milwaukee County family court renovation out for bid
Milwaukee County is getting ready to renovate the seventh floor of the county courthouse and improve the family courts for what officials and judges call life and safety issues. Milwaukee County Chief Judge Carl Ashley said the current design of the floor and emotional nature of divorce and custody cases makes a dangerous situation for staff and everyone who needs to use the court system.

VJS Construction raises roof for Milwaukee school expansion
Crews for VJS Construction Services literally raised the roof at Bruce Guadalupe Community School (BGCS) by adding a 12,000-square-foot third floor to the K4-8th grade charter school in Milwaukee. The additional floor will be used to create 12 classrooms for elementary school children and crews also worked downstairs on a cafeteria expansion in the existing school. The project first kicked off in April and is fueled by a $6 million fundraising campaign through United Community Center (UCC). which operates several charter schools.

Stage set for Golden Triangle rentals
Minneapolis-based Greco Properties is beginning site work on the first phase of a project that will bring 425 apartment units to 6901 Flying Cloud Drive in Eden Prairie's Golden Triangle. Two entities related to Greco and its development affiliate, Eagle Ridge Partners, executed a $4.74 million property transfer on August 16, setting the stage for work to begin on the $71 millions first phase. 

Construction Update: The Station at Malcolm Yards nears completion
With the ribbon freshly cut on their affordable housing project in Minneapolis' Prospect Park neighborhood, Lupe Development and Wall Cos are nearing completion of a companion market-rate building --- The Station at Malcolm Yard. The two projects bring a combined 353 new homes, a food hall and more to a former industrial site with roots going back to the 1880s.

Anoka buys manufacturing building that will likely be redeveloped
The city of Anoka is the new owner of a recently shuttered manufacturing building on a transit-oriented site that holds promise for future redevelopment. The city paid $9 million for the 175,650-square-foot building at 2939 Sixth Avenue, according to a certificate of real estate value make public. Lakeland Tool & Engineering of North Branch is the seller. 

Theodore Roosevelt presidential library under construction in North Dakota Badlands
Construction is underway for the Theodore Roosevelt presidential library planned in the Badlands of western North Dakota, where the 26th president hunted and ranched as a young man in the 1880s. The work began June 15 with removing topsoil for the project's cut-fill plan. Buildings are beginning construction on the library's east retaining wall, with an initial concrete pour completed.

Woman-owned contractor brings new life to home of nation's first Black fraternity in New York
US Ceiling Corp. for years has prioritized making a difference both through hiring practices and as a social impact contractor. Now, the Henrietta, New York-based company is embarking on a project in Ithaca that embodies the very essence of those standards.

Industry Stats & Reports

Navigating the Impact of a Looming Government Shutdown

posted on 09.27.2023

Congress is once again approaching a critical deadline, one that could lead to a national government shutdown at 12:01 AM on Sunday, October 1, 2023. 

With congressional gridlock preventing the passage of even a continuing resolution, the prospect of a federal government shutdown, the third in five years, is looming large. While this political standoff impacts many sectors, the construction industry, a key player in infrastructure projects and development as well as job creation, is not immune to its effects.

In today's complex project funding landscape, even construction projects with partial federal funding could face disruptions. The consequences of a government shutdown extend beyond the immediately noticed surface, often overshadowing the federal contractors who support day-today government operations.

So, what would a government shutdown mean for the construction industry if it should happen later this week? Now is a key time for contractors to ensure they are taking the right steps to weather this impending storm. In this article, we will delve into both the short-term and long-term effects a shutdown could have on our industry, along with strategies to manage this uncertainty. 

 

Project Delays
One of the most immediate effects of a government shutdown would be immediate project delays, affecting infrastructure projects that rely on federal funding or permits. Key federal agencies, including the U.S. Department of Transportation (DOT), would not be fully operational. This means new federal projects may not begin, awards could be suspended, and ongoing projects could be put on hold. Clear communication with Contracting Officers (CO) is crucial during this period, as guidance on which activities can continue would be essential.

Some vital government functions are exempt, but most federal agencies would be curtailed. Key federal agencies, such as the U.S. Department of Transportation (DOT), would not be fully operational, meaning new federal projects would not break ground, awards would be suspended, and current projects would be put on hold. Federal agencies would also be unable to issue new guidance as to how funds should be used.

Clear communication with your Contracting Officers (CO) is crucial during a period like this. Ask for clear direction on which activities, if any, should continue during a shutdown. The Office of Management and Budget (OMB) is responsible for issuing instructions to federal agencies, including as to which employees and/or activities can be continued. Agencies develop internal plans based on those instructions, and COs should in turn instruct contractors based on their agencies’ plans. These instructions should also address whether government personnel will work during the shutdown, as well as which services will continue under individual contracts. 

 

Permitting and Regulatory Delays
Shutdowns disrupt the workflow of construction projects requiring federal permits or approvals. Understaffed agencies may struggle to process applications promptly, leading to uncertainty and project timeline delays.

It's also highly likely agencies like the Environmental Protection Agency (EPA) and the Department of the Interior (DOI) will see furloughed employees, preventing the issuance of necessary project documents, permits, and environmental reviews.  

One the positive side of the coin, the Federal Highway Administration could stay open and construction should be able to continue without interruption for current projects underway since they use highway trust fund money.

But, on the other side of the same coin, rail and transit projects face different obstacles. Federal transit employees would be furloughed, meaning local transit and rail agencies would need to use their own funds to pay contractors or shut down altogether. Airport construction will also sees shutdowns, depending on how the project funding came in.

 

Contract Disruptions
Contractors working on government projects may encounter payment delays, contract modifications, and stop-work orders. It's important to remember that a "shutdown" does not necessarily close everything down: a shutdown may halt performance under some contracts but not others.

Many contracts are "fully funded" --- i.e., funds have already been obligated to cover the price of a fixed-price contract or the estimated cost of a cost-reimbursable contract. Of course, complications can arise if performance depends on government employees who are furloughed, government facilities that are closed, or other government contracts that require additional funding during the lapse. For these reasons, and others, the government may stop work even on contracts that are already funded.

Similarly, a shutdown may affect funded contracts if performance is expected to exceed the estimated cost due to changes, delays, or other events for which a cost adjustment may be needed.

 

Infrastructure Deficiency
Delayed government-funded infrastructure projects can result in long-term deficiencies, impacting economic development and competitiveness. The Federal Emergency Management Agency’s Disaster Relief Fund, for instance, could face running out of funds, delaying disaster response and recovery efforts.

 

Investor Uncertainty
Prolonged government shutdowns can create market uncertainty, causing investors to pause and rethink committing to long-term projects, hindering industry growth.

State Departments of Transportation (DOTs) might hesitate to authorize new construction projects due to concerns about reimbursement (this is what happened during the 34-day shutdown in 2019). This could particularly affect new programs like those under the Infrastructure Investment and Jobs Act (IIJA). Many of these programs are new and agencies don't have a historical precedent to use in guiding how they'll be reimbursed during this type of project pause.

 

Private Sector Impact
The private sector is indirectly affected as well. Private projects that rely on government support, such as financing or loan guarantees, may face delays or increased costs.

 

Labor Force Challenges
As if the construction industry didn't already face enough challenges when it comes to its labor and workforce, a prolonged government shutdown could lead skilled workers to seek employment in other industries, posing challenges for retaining talent. 

Contractors are sometimes asked to renew a contract without funding because their work is considered “excepted,” and that could apply to more and more functions as a shutdown drags on. In any case, companies may want to ask what breathing room they do have and what they should do with their workers affected by a funding gap, whether that’s putting them on paid leave, setting them up with on-the-job training, furloughing them, or redirecting them to non-billable tasks not considered their primary duty.

 

Economic Impact
The construction industry is a significant contributor to the national economy, and a shutdown can lead to economic downturns, including job losses, reduced economic growth, and decreased consumer confidence.

In 2019, the five-week shutdown led to nearly 800,000 furloughed federal workers (or they continued to work but without pay) and an untold number of contractor employees were affected. It is estimated that 10,000 companies with government contracts were affected at the time, per reporting by the Washington Post

 

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Is there a way to lessen the impacts of a government shutdown now or in the future? There are several strategies to consider:

1.) Diversify Funding Sources
Contractors can consider diversifying their funding sources, such as seeking private investments or state-level funding, instead of relying completely on federal funding. This can help in making projects less vulnerable to government shutdowns when they occur.

2.) Contractual Protections
Contractors can incorporate clauses in their contracts that address the possibility of government shutdowns, allowing for negotiations and adjustments in case of disruptions.

Despite contract awards being delayed, government officials furloughed, and government facilities closed, the safest approach is to assume all deadlines remain unchanged until officially notified —especially deadlines for submitting proposals, filing bid protests, and appealing CO final decisions. Plan on meeting all solicitation deadlines for bid and proposal submissions and get further instructions from the contracting agency.

3.) Document Everything
In the days leading up to and during a shutdown, document all communications with your CO. This should include instructions or guidance provided by the government about the availability of government personnel, facilities, and other resources that you need to perform your contracts.

Keep detailed records of all work your employees perform under all your contracts as well as the impacts on the schedule for performance. It is also important to document your efforts to minimize any costs incurred due to the shutdown.

 

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National government shutdowns present significant challenges to the construction industry both in the short-term and long-term. By being proactive, contractors can take steps to minimize a shutdown's impact. Stay informed, adaptable, communicate clearly, and be prepared; together, we can navigate these uncertain times and continue contributing to infrastructure development and job creation.

 

Information regarding details of a possible government shutdown within this blog post were sourced from this Federal Times article written by Moly Weisner published on September 19, 2023; this Wiley Law article published on September 25, 2023; and; this Construction Dive article written by Julie Strupp published on September 26, 2023.

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