A run-up in construction costs is being blamed for a hold-up in a company's plans to construct a nine-story apartment tower near First Avenue nightclub in downtown Minneapolis, the Minneapolis St. Paul Business Journal reports.
The company principle for the Turnstone Group said the cost of the $20 million budget for the apartment tower -- called The Venue -- jumped double digit in percentage points in the past 12 months, the Journal said.
Chip Johnson said with that sort of increase, the cost was too much to absorb to remain viable in today's market.
Johnson revealed his plans for the 130-unit apartment tower in May.
According to Johnson, Turnstone Group is currently operating the space where The Venue was to be built as a parking lot, and will continue to do so for the foreseeable future.