Mortenson has backed away from its plan to build a hotel on a high-profile parcel along Washington Avenue near the Mill District.
The Golden Valley-based developer had been planning an approximately 10-story, mixed-use building with a 235-room Hyatt Centric hotel, offices for the American Academy of Neurology and a restaurant by Culinaire International for the past two years.
Bob Solfelt, vice president of Mortenson Development, said in a statement that though they had “very positive” discussions with groups like the AAN and the Downtown Minneapolis Neighborhood Association, the timing was off.
“We have been working through the development process during a rapidly changing investment period and have decided that current market timing is suboptimal for our needs,” he said.
In 2015, the City of Minneapolis chose Mortenson over Sherman Associates and Saturday Properties to develop the roughly half-acre slice of land near the Guthrie Theater.
The proposal from Sherman Associates featured a nine-story hotel with 140 rooms and a Pinstripes, a growing national bowling, bistro and bocce ball chain, as an anchor tenant. Saturday Properties had pitched a six-story building with a 166-room hotel and restaurant.
The City of Minneapolis first issued a request for proposals in early 2015. It had been looking for at least a four-story development with retail users along Washington Avenue.