The Minneapolis City Council on Friday awarded Ryan Cos. the rights to construct a hotel/apartment building on top of a planned parking ramp in the Downtown East development project, the Pioneer Press reports.
Ryan has proposed 10 floors of hotel, with 17 floors of apartments above that, all set atop a planned 1,610-stall ramp to be constructed on 4th street. City documents indicate Ryan aims to build a 150-room Radisson Red hotel and 200 apartment units. Ryan plans to complete the projects by August 2017, KSTP reports.
Ryan offered the city $5.65 million for the "air rights" above the ramp; Mortenson Development had bid $1 million.
The proposed tower would be part of a larger redevelopment of a $400 million Downtown East project aimed at revitalizing a drab pocket of downtown next to what will be the new $1 billion Vikings stadium, going up on the site of the recently razed Metrodome.
The broader project calls for two office towers and a two-block city park adjacent to the new stadium. The deal is one of the largest commercial property transactions in the metro area in recent history, the Business Journal noted.
Earlier this month, Wells Fargo closed on a deal with Ryan Cos. for the two office towers.
The land had been owned by the Star Tribune, but last month, Ryan purchased four blocks from the Star Tribune for $30.8 million, and the newspaper sold a fifth block to the Metropolitan Sports Facilities Authority, which will build the new parking ramp on that space.