Minneapolis passes $1 billion in construction permits

With the big projects in the east part of downtown, last year's permits surpassed $2 billion in value.

September 24, 2015 at 2:28AM
Stadium construction workers listened as speakers took to the stage. ] GLEN STUBBE * gstubbe@startribune.com Thursday September 16, 2015 A "topping out" ceremony for the new Minnesota Vikings stadium, marking the highest or last piece of steel placed on a building. Mark Wilf and Lt. Gov. Tina Smith were there. Heavy rain and lightening in the area made it unsafe to hoist the steel beam to the roof. Workers were treated to a free pork chop lunch. ORG XMIT: MIN1509171414050046
The building of the new home for the Minnesota Vikings, U.S. Bank Stadium, is part of what helped the city beat $2 billion in permits last year. (The Minnesota Star Tribune)

It's another $1 billion year for construction in Minneapolis.

With three months left in 2015, the city blew past the 10-digit mark in construction permits for the fourth consecutive year.

Minneapolis passed the $1 billion mark on Sept. 11, and there are several large projects working their way through the city approval process, which officials expect will raise that number higher.

The news follows last year's record-setting performance when Minneapolis doled out $2 billion in permits — largely aided by the Minnesota Vikings' new home, U.S. Bank Stadium, and the nearby Wells Fargo & Co. office towers.

"We probably won't hit $2 billion this year. It's hard to tell what the final number will be at the end of the year," said Rose Lindsay, spokeswoman for the city's Planning Department.

Most of the stadium work was counted in last year's total, but the Downtown East development continues to be a large piece of 2015. The two 17-story Wells Fargo buildings, at 550 and 600 S. 4th St., are the central feature of the project, pulling nearly $80 million in permits so far this year.

"It's exciting to see the development around the stadium we expected come to life, creating sustainable, multiyear jobs and a vibrant downtown," said Steve Poor, the city's director of development services, in a statement.

A soon-to-be Embassy Suites in the historic Plymouth Building at 5th Street and Hennepin Avenue S. may be this year's development dark horse, a project that has quietly emerged as a big spender. HRI Properties, the New Orleans-based developer heading the large project, pulled nearly $51 million in work permits, chipping away on the renovations without much public fanfare.

The new Xcel Energy headquarters building at 401 Nicollet Mall added $44 million, and the Portland Towers condo project at 740 Portland Av. added $38.7 million.

Much of the boom in the last four years can be attributed to pent-up demand created by the recession. Before 2012, Minneapolis hadn't seen $1 billion in construction since 2000.

City officials anticipate that several large projects in the approval pipeline will be permitted in the coming weeks.

Kristen Leigh Painter • 612-673-4767

U.S. Bank Stadium
U.S. Bank Stadium and the Downtown East project in Minneapolis are helping boost construction permits for the city. (Star Tribune/The Minnesota Star Tribune)
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Kristen Leigh Painter

Business Editor

Kristen Leigh Painter is the business editor.

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