The Hennepin County Board expanded its downtown Minneapolis footprint on Tuesday with the purchase of the Thrivent Financial building.
In addition to the $55 million Thrivent purchase, approved on a 5-2 vote, the board also approved an $11.5 million deal for 332 parking stalls at a nearby property that is slated for mixed-use development.
The 17-story dark pink building, at 625 4th Av. S. near the county's Government Center, is expected to be filled mostly by employees of the Family Justice Center and Hennepin County Medical Center (HCMC).
Commissioners Mike Opat and Jeff Johnson have vigorously opposed the deal and voted against the purchase. They argued the county didn't need more space and that it couldn't afford such a costly expenditure.
"I think this is a bad deal," said Opat. "It's a disservice that staff is putting this before us. It is a solution to a problem that doesn't exist."
But County Administrator David Hough said buying the building showed a long-term vision for county services and employees. The move would dramatically improve the county's ability to serve citizens more efficiently and consolidate several properties the county leases or owns, he said.
With the purchase of Thrivent, officials said, the county can shift about $25 million in planned capital projects to finance the deal. The parking stalls will also provide revenue to the county, they said.
A newly constructed building, Hough said, would have cost the county about $335 per square foot to build. The purchase price of the Thrivent building, plus renovation expenses, will be about $200 per square foot, he said.