Skip to main content

Luxury Radisson hotel dropped from Downtown East project

  • Author:
  • Updated:
    Original:

A new luxury hotel under the Radisson Red name has been dropped from the Downtown East development being planned in Minneapolis near the new Minnesota Vikings stadium, the Business Journal reports.

The 150-room hotel would have occupied the first 10 floors of a new 27-story building (rendering below), with the rest of the space being taken up by luxury apartments. The $101 million tower, which is being developed by Minneapolis-based Ryan Cos., is planned for a prime spot on South Fourth Street, next to the new stadium.

Ryan Co. partnered with the Carlson Rezidor Hotel Group to build the hotel. But the two parties scrapped the plan Monday for financial reasons, according to the Star Tribune.

Robert Kleinschmidt, chief development officer for Carlson Rezidor, said in a statement e-mailed to the Star Tribune that his firm is “disappointed that the numbers did not work out to fit a Radisson Red hotel.”

He added that Carlson will explore other possible locations in downtown Minneapolis for a Radisson Red hotel.

According to the Business Journal, Collin Barr, president of Ryan's NorthCentral region, released this 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."

The top 17 floors of residential units are to be developed by Chicago-based Magellan Development.

The tower is to be built over a parking ramp that will be owned by the Minnesota Sports Facilities Authority, the public body in charge of the Vikings stadium construction, the Star Tribune notes.

In March, the city of Minneapolis awarded Ryan the “air rights” to develop the space above the ramp into the hotel and apartments for $5.65 million, choosing its proposal over one submitted by Mortenson Development that offered $1 million.

Ryan was planning to get final approval of its development plan and to close on the air rights this summer, according to the Business Journal. If Ryan decides to go ahead without the hotel, the city would likely have to give its approval or could potentially reopen the process to other proposals.

"Clearly I'm not thrilled with the news," said Jacob Frey, who represents the area on the Minneapolis City Council, to the Business Journal. He said city officials need to look at various options before deciding on next steps.

The $400 million Downtown East project includes two office towers, which will be occupied by Wells Fargo, as well as restaurant and retail space and a two-block city park adjacent to the new stadium.

Next Up

ambulance

Motorcyclist killed on I-494 crash in Richfield

The Minnesota State Patrol has identified the victim as a 42-year-old Shakopee man.

013_kitchen

Gallery: This Seward Neighborhood gem SOLD fast!

Classic 1903 home came with modern updates

Screen Shot 2022-06-30 at 3.19.42 PM

Evacuations underway after explosion, fire on U of M campus

Evacuations are in effect on campus after an underground explosion and fire Thursday afternoon.

hopkins high school

‘Terrible prank’ during tornado drill causes scare at Hopkins High School

The school principal said the incident brought armed police to the school and "understandably caused some scholars anxiety."

MNBCA - Balsimo 1

Woman admits to role in St. Paul man's gruesome murder

A 32-year-old Duluth woman has taken a plea deal in the case of a 34-year-old St. Paul man's murder.

Screen Shot 2022-06-30 at 11.18.35 AM

'Living nightmare’ alleged at Savage, Minn. rabbit sanctuary

"Peacebunny Cottage" is now the subject of an animal cruelty investigation.

ambulance

Tractor tips on embankment, killing man in Kandiyohi County

The tractor reportedly tipped and fell on top of the man, pinning him underneath.

Sloane Martin

Sloane Martin teams with Mike Golic Jr. for college football broadcasts

Martin, 33, lives in Minnesota and continues to climb the sports broadcasting ladder.

Melvin Carter

St. Paul plans to extend $500 payments to low-income families

The expansion would give more than 300 families a monthly payment of $500.

16362 County Rd 81, Maple Grove, Minnesota - October 2021 (4)

Use of car seat in crash that killed child still under investigation

The mother of the child was treated for injuries not considered to be life-threatening.

Related