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.
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.