Minneapolis, Minn.-based Ryan Companies faces a big day on July 19. That’s when the developer will present conceptual plans to the Minneapolis City Council for Downtown East, its proposed $400 million mixed-use development that will cover five blocks adjacent to the new Vikings stadium.
Mortenson Construction is now building that new NFL stadium. But as important to the area are Ryan’s plans for Downtown East, a project that will include 300 to 350 residential units, 40,000 square feet of retail development, a public park — to be called The Yard — and a pair of 20-story office towers.
Ryan has already received approval to build two parking ramps and purchase a third for the new Vikings stadium. The ramps will provide 2,500 parking spaces. The Minnesota Sports Facilities Authority in early July awarded the parking contract to Ryan Companies.
Ryan will take another step toward making Downtown East a reality at the city council’s July 19 meeting, where a vote on the conceptual plans is expected. Earlier this month, the city council’s Community Development Committee approved these plans in a 4-1 vote. That’s key; the city council members would have been unlikely to support the project if the development committee had voted against it.
During that meeting, members of the development committee praised Ryan’s plan, and said it would bring much-needed life to land near the former Metrodome that had long been underused.
There is still much uncertain about Downtown East. But it appears that Wells Fargo & Co. will be the corporate tenant and owner of the plan’s two office towers, towers that will include 1.2 million square feet between them. Ryan and Wells Fargo have not yet reached an official agreement. But at the development committee meeting, Dave Kvamme, Wells Fargo’s Minnesota chief executive officer, said that his company is excited about the development. It has long been rumored that Wells Fargo will be the office towers’ owner.
Ryan Companies hopes to purchase the five blocks it needs for the development by the end of this year and then begin construction in the spring of 2014. The first phase is scheduled for completion in the first part of 2016.
Earlier this year, key Minneapolis officials threw their support to Ryan for the project.
“A year ago, we committed that the new stadium would not be surrounded by a sea of parking lots, but by a vibrant neighborhood,” said Minneapolis Mayor R.T. Rybak. “One year after the bill was signed and before ground is even broken on the stadium, we begin delivering — in a big way.”
According to the city, the new development would add $3.5 million in property taxes in its first year, including $1 million that would go to the city of Minneapolis. During 30 years, the development would generate $30 million to $50 million in property taxes to the city.
Ryan Companies plans to develop the office space, retail and residential portions of the project privately without public financing.