More condos for NE
proposal for a mixed use project that includes a 20 story tower and 300 condos.
http://www.bizjournals.com/twincitie...08/story4.html
Ryan weighing condo conversion at N.E. Mpls. factory site
Sarah McKenzie
Staff writer
Ryan Cos. U.S. Inc. is considering whether to redevelop a metal-finishing factory near downtown Minneapolis into a mixed-use project with hundreds of condos.
The developer has been talking with community leaders and officials at Superior Plating Inc., a manufacturer located two blocks east of the river, about replacing the business with a high-density project. There are no formal agreements to sell the site yet.
Ryan's preliminary plans include building more than 300 condos on the site, located at the corner of First and University avenues, said Michael McMonagle, president of Superior Plating.
The development would likely rise about 20 stories and include some commercial space for either retail or office tenants.
Collin Barr, vice president of development for Ryan, declined to comment on the proposal.
Community leaders have pushed for a transit station at the site to accommodate the proposed Northstar Commuter Rail line, which would run on tracks directly north of the roughly 5-acre site. The line would connect downtown Minneapolis with Big Lake, a city about 40 miles northwest of the Twin Cites.
According to a proposed Northstar route map, however, the only station in Minneapolis would be near Target Center.
While Superior Plating occupies prime real estate in fast-growing northeast Minneapolis, Ryan would face hurdles in redeveloping the site.
For one, the Minnesota Pollution Control Agency (MPCA) lists Superior Plating as an active Superfund site. The manufacturer has an ongoing cleanup effort to remediate the pollution, which includes trichloroethylene, a colorless liquid used to clean metal parts that has leached into the groundwater.
Superior Plating has been in the metal-finishing business for 75 years. The company employs about 100 union workers.
While the manufacturer is eager to see the site redeveloped, a deal would be contingent on Ryan agreeing to pay for Superior Plating's relocation costs, which might include building a new headquarters. The moving expenses are expected to approach $20 million.
Superior Plating sent letters to major Twin Cities developers to see if any had interest in redeveloping the site, and Ryan's proposal stood out.
"Ryan was the best fit for us," McMonagle said.
The Minneapolis-based developer has a strong track record in taking on challenging sites. The developer's Midtown Exchange project, under construction in south Minneapolis, is known as one of the most complicated in the state's history.
The $190 million redevelopment of the 1.1 million-square-foot former Sears complex on Lake Street will house Allina Hospitals & Clinics' headquarters, a Sheraton Hotel, more than 300 housing units and the Global Marketplace, a retail market and business incubator, when complete.
Besides the Midtown Exchange, Ryan has completed several other high-profile projects, including the renovation of the Grain Belt Brewhouse in northeast Minneapolis and the development of Target's corporate headquarters and retail store on Nicollet Mall.
Victor Grambsch, head of the Nicollet Island/East Bank Neighborhood Association, said community leaders plan to form a task force to review Ryan's proposal if the developer decides to move forward with its plans. Meetings would likely start sometime this fall.
While Grambsch likes Ryan's ideas, he's quick to laud the metal-finishing manufacturer for its contributions to the area. "Superior Plating has been a very good neighbor," he said.
The site is next to the Village at St. Anthony Falls, a three-block, mixed-use development with new restaurants, townhomes and apartments built in 2001.
Nearby, developers have proposed other large residential projects, including the Cobalt Condominiums, a 96-unit development replacing the Eastgate Shopping Center at Central and University avenues.
There also are plans for a 12-story, 150-unit condo mid-rise next to Superior Plating at First Avenue and Sixth Street Northeast, and new condos at 700 Central Avenue.
Condo sales in neighborhoods near downtown Minneapolis remain strong, but absorption levels for 2005 are expected to be lower than last year, according to a recent market update by Minneapolis-based Maxfield Research.
Buyers will absorb about 1,000 new condo units this year, compared to 1,263 in 2004. In the next two years, the market is expected to absorb between 800 and 900 new units.
smckenzie@bizjournals.com | (612) 288-2107
© 2005 American City Business Journals Inc.