Luxury Radisson hotel dropped from Downtown East project


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

police lights

Three teens charged in Minneapolis robberies

The incidents took place on Saturday in Minneapolis.

covid-19, coronavirus, ppe

Here is Minnesota's COVID-19 update for Thursday, January 21

It's the first time in exactly four months that Minnesota has had fewer than 100 COVID patients in intensive care.

icy roads, bad roads

Girl, 16, killed in crash with semi on icy Minnesota road

The crash happened in Dodge County around 8 a.m. Wednesday.

police lights

Road rage incident sees driver punch out man's window, punch him in face

The incident happened in Waite Park Wednesday morning.

Screen Shot 2019-10-11 at 7.01.24 AM

Minneapolis will recover $100K in costs connected to 2019 Trump rally

The Target Center operator said it'll pay the costs over three years.

Jacob Frey

Minneapolis Mayor Jacob Frey confirms run for reelection

He has faced criticism over the city's response to George Floyd's death.

Kirk Cousins

Coller: How far away are the Vikings from playing championship weekend?

Matthew Coller writes a weekly Vikings column for BMTN, with more of his work found at Purple Insider.


1 dead, 1 airlifted following head-on crash in Stearns County

A 48-year-old died and a 35-year-old suffered life-threatening injuries.

fire truck

1 person killed, another injured in fire at Hudson home

The amount of "combustible material" in the home made it difficult for firefighters.

nichole's fine pastry and cafe

Guy Fieri's visit to Fargo cafe for 'Diners, Drive-Ins and Dives' will air soon

Over the summer, Fieri visited several restaurants in the Fargo-Moorhead area.


2 dead in St. Paul shooting Thursday morning

A homicide investigation is underway.


One dead in head-on crash in west-central Minnesota

The incident occurred on Highway 27 near 150th Avenue.