The following article by Sam Black was published in the June 30, 2014 afternoon edition of the Minneapolis/St. Paul Business Journal.
A Park Watch question raised by this change of plans is “Wouldn’t it be best if the city would take this opportunity to do some renegotiating with Ryan, the Vikings and the Sports Authority?”
Radisson Red dropped from Ryan tower project near new Vikings stadium
Ryan Cos. US
A conceptual rendering of the Radisson Red hotel and apartment tower Ryan Cos. US Inc. planned near the Vikings stadium. Carlson Rezidor Hotel Group disclosed Monday that the Radisson Red is no longer part of the plan.
A Radisson Red hotel is no longer part of Ryan Cos. US Inc.’s proposal for a tower next to the new $1 billion Minnesota Vikings stadium.
Ryan’s initial $101 million proposal, approved by the Minneapolis City Council in March, described a 27-story tower anchored on the first 10 floors by a 150-room hotel, a new brand to be developed with Minnetonka-based Carlson Rezidor Hotel Group.
“The Radisson Red proposal is no longer active, however Carlson is continuing to explore other opportunities with [Ryan] on downtown projects that make financial sense for [the Radisson Red] brand,” Carlson Rezidor Hotel Group spokesman Ben Gardeen said in an email.
Collin Barr, president of Ryan’s NorthCentral region, said in a statement:
“Our development team has worked very intensely over the last few months to try and reconcile the cost of a hotel and apartment project together in one large tower. Ultimately, we determined we could not deliver the hotel component of this project based on the required budget.”
I’m waiting to get a statement from city officials. City Council member Jacob Frey, who represents that area, said, “Clearly I’m not thrilled with the news.”
The top 17 floors of residential units are slated to be developed by Chicago-based Magellan Development.
The project was going to occupy the “air rights” above a new, $49 million parking ramp at 728 S. Fourth St. that Ryan is building for the Minnesota Sports Facilities Authority (MSFA). The 1,600-stall ramp is being funded as part of the new Minnesota Vikings stadium next door. Ryan agreed to pay the city $5.65 million for the development rights.
Ryan expected approval of its final development plan and to close on the air rights purchase this summer.
The city would probably have to give approval if Ryan decides to pursue the project without the hotel. The city could turn to Mortenson to negotiate a deal or put the project back out for another round of proposals.
Mortenson pitched a $63 million, 300-room hotel that would be co-branded as AC Hotels and SpringHill Suites, both Marriott International Inc. brands. Mortenson offered $3 million for the development rights.
Frey declined to discuss any of the issues that might have led to the Radisson Red decision, saying it’s more important to concentrate on the future.
“We’ve got several options before us. I think what’s necessary is to figure out what options maximize the number of eyes on the [new Downtown East] park and dollars into it and I really gotta sit down with staff to determine which option that is.”