This document summarizes the Downtown East redevelopment project in Minneapolis led by Ryan Companies US, Inc. Key points include:
- The project redeveloped a formerly low-density area east of downtown Minneapolis near the new Vikings stadium into a mixed-use development with offices, apartments, parking ramps, and a new urban park.
- It has included over $400 million in private investment so far and will create an estimated 5,000-6,000 new jobs in downtown Minneapolis.
- The project faced challenges in coordinating with multiple stakeholders and establishing a funding plan without using tax-increment financing. However, private and public partnerships were able to finance public components like parking ramps and a new park.
8. Mill District Development -2013 Aerial Photo
St. Anthony Mills Apartments
Guthrie Theatre
Guthrie Parking Ramp
Gold Medal Park
American Academy of Neurology
Zenith Condominiums
Aloft Hotel
The Bridgewater
MacPhailCenter for Music
Mill District City Apartments
11. Reinventing Downtown East
We started with a Stadium, Plaza and Parking
$400 million private investment
193 apartment units (first phase)/300 residents
1,610 stall parking ramp
5,000 -6,000 downtown jobs
Connections between Stadium and Core
$3.5 million annual taxes / $1 million to Minneapolis
World-Class Urban Park
15. Most Significant Project Challenges
Creating A Compelling Vision for ALL Project Stakeholders
StarTribune (to allow us to control land)
Corporate Office User –Wells Fargo
Minnesota Sports Facilities Authority
Minnesota Vikings
City of Minneapolis
Neighborhoods
Expending SIGNIFICANT “at risk” Effort, $
Design
Development
Construction Management
Legal
Government Affairs
Environmental
AUAR
Creating a Funding Plan that satisfied City, Wells Fargo
No TIF
Multi-party Public Commitments Required
City of Minneapolis
MSFA (required Minnesota Vikings concurrence)
Aggressive Schedule
Fixed occupancy date by Wells Fargo
Managing Risks
Corporate User Commitment
Multi-Entity Political Decision-Making
Construction Pricing/Availability
Design Schedule
Environmental Contamination
16. Funding Plan –Public Project Components
Parking Ramps, Skyways
Owned by MSFA
Substantially funded through State legislation for Vikings Stadium
Park
Owned by City of Minneapolis
Public Funding for Park, City Portion of Parking Ramp (non-Vikings):
TIF is not an option for several key reasons
Ryan Proposed Funding Plan
Approximately $55 -$60 M G.O. bond issuance by City
Ryan manages MSFA-owned Parking Ramps
−
Ryan takes all economic risks during contract term
Ryan commits to make payments to City
−
Based on, but not tied to, parking NOI
17. Ryan’s Project Completed beforeStadium opening
-City Council Approvals
December 13, 2013
-MSFA Board/Vikings Approval
December 13, 2013
-Acquired 5 blocksfrom StarTribune
February 10, 2014
-CityIssued G.O. Bonds
March 4, 2014
-Abatementand Demolition Start
April 1, 2014
-Groundbreaking Ceremony
May 13, 2014
-Initial Office Tower Delivery
February2016
-Initial Residential Delivery
Spring2016
-Park Opening
2Q 2016
Aggressive Project Schedule
18. Phase I -Downtown East
-2 Wells Fargo buildings = 1,200,000sf
-193 apartment units facing the park
-1,610 stall parking ramp
Plus air rights development above parking ramp
(pending)
-350 apartment units with Magellan/Ryan
Air rights above parking ramp