Ryan Cos.’ plan to develop a city-owned site near the Vikings stadium with a 27-story tower featuring a hotel and apartments is on track for approval.
The City Council’s Community Development and Regulatory Services Committee approved designating Ryan as the developer for the project that would be built above a six-story, 1,610-space parking ramp Ryan is building for the stadium March 18.
The full Council will vote on the deal March 28.
Ryan Cos. has offered to pay the city $5.65 million for the parcel and air rights referred to by the city as Block 1. The block is next to the stadium and would go up adjacent to Ryan’s proposed office towers for Wells Fargo and the new park.
The $101.4 million development would feature a 150-room Radisson Red hotel on the first 10 floors and 200 apartments on its top 17 floors. Magellan Development Group would be in charge of the rental portion of the project, according to a Community Planning and Economic Development (CPED) report.
The project would also feature a large restaurant at the corner of 4th Street & Chicago and a “pocket garden” between the entrances to the hotel and apartments.
Ryan has also committed to seeking LEED certification for the project.
CPED staff recommended Ryan’s plan over Mortenson Development’s proposal for a new hotel with retail and restaurants at street level.
The city’s Finance Department estimates Ryan's hotel/apartment proposal will generate about $876,000 in park dedication and building permit fees in addition to $1.24 million in taxes paid to the city by 2029.
The project is also projected to create 975 construction jobs and about 125 full-time jobs for people working at the hotel, apartment tower and retailers.
Pending city approvals, construction on the tower would start in May 2015 with a target completion date in August 2017.
City Council Member Jacob Frey (Ward 3) called the proposal a “phenomenal project” at the Council committee meeting.
He said it would result in “more eyes on the park” and more money for the city.
The new hotel/residential development would rise next to Ryan’s $400 million Downtown East development planned for five blocks now home to surface parking lots and the Star Tribune, which will be demolished to make way for the project.
Two new officers towers with more than 1.1 million square feet of office space for Wells Fargo will anchor the project. There are also plans for housing, retail and a new two-block park.
Ryan has pledged to privately finance $350 million of the Downtown East project. The Minnesota Sports Facilities Authority (MSFA) has agreed to pay $28.9 million to build skyways and a portion of the Block 1 parking ramp and the City of Minneapolis has agreed to contribute about $57 million in financing by issuing bonds for the park, parking ramp and other site costs.