Vikings Stadium Bill is officially signed in Minneapolis

Vikings Stadium Bill is officially signed in Minneapolis

Gov. Mark Dayton will give special treatment today to the official signing of the Vikings stadium bill.

Dayton will hold the noon ceremony in the State Capitol rotunda, signing the bill — underneath an ornate marble dome — to replace the Teflon-roofed Metrodome with a spanking new home for the football team.

Vikings owners, bill sponsors and leaders from the labor and business communities will be on hand.

The legislation for the $975 million stadium commits the state to raising $348 million by allowing electronic pull-tabs and bingo in bars and restaurants. There are also backup funding measures such as a lottery game and luxury suite taxes.

Although renderings of a new stadium were released by the team and other groups involved in the debate, the actual design of the stadium — including whether it will have a retractable roof — is a long way off.

Also, the Minneapolis City Council still needs to vote to approve its share of the stadium financing. The city’s contribution is expected to be $150 million for construction and another $189 million for operating costs over the life of the deal, not including interest payments.

Dayton’s signature on the bill kickstarts a 30-day timeline for the council to give its approval.

Unless Mayor R.T. Rybak fast tracks a vote, council members would take action at their next regular meeting on May 25. A slim majority of the council has expressed support for a new stadium.

After Dayton signs the stadium bill, he has one other big piece of legislation to deal with: The tax bill.

He vetoed the first GOP tax bill, so Republicans scaled it back and sent him a new version. The final version of the bill provides $46 million in business tax breaks, including tax breaks for research and development, investors in new businesses and historic preservation projects.

– STAFF and ASSOCIATED PRESS

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Minneapolis Condo Market Update

Minneapolis Condo Market Update

Fewer listings and a deeper well of buyers sparked the Twin Cities housing market in April, as home sales and prices climbed for the second consecutive month.

Throughout the metro area, the number of closed sales last month rose 7.1 percent compared with last year, while the median price of those deals jumped 12.4 percent to $163,000, according to data released Thursday by the Minneapolis Area Association of Realtors.

An improving economy and warmer weather are motivating more home buyers to enter the market and consider higher-priced homes, agents say. The positive momentum comes at an ideal time, as the housing market’s busiest months are just around the corner.

“We’re impressed with the changes that have taken hold in recent months,” said Andy Fazendin, the association’s president-elect.

The rising sale prices reflect greater competition among home buyers, agents say, a dynamic that just didn’t exist a year ago. The market also has benefited from a steep decline in the number of foreclosure sales.

In the aftermath of the Great Recession, distressed sales typically have represented more than half of all home purchases, but such transactions fell to 43 percent of all closings last month. At the same time, sales of traditional listings jumped nearly 60 percent.

With inventory at its lowest level since 2004, buyers are ready to pounce, especially on houses in turnkey condition.

“Inventory is so low that if there’s something good that comes up, there are many buyers just waiting,” said Marti Estey, an agent with ReMax Results.

Agents say the recent activity suggests that the market is clearly beginning to rebound, though it has a long way to go before it reaches prerecession health.

Estey says she has been involved in several home purchases where there have been multiple offers, including a house in Lino Lakes that had seven bids. If the house is in good condition and reasonably priced, then it will get a lot of attention from buyers, agents say.

“Those waiting for falling prices will likely be disappointed,” Fazendin said.

While sellers are finding there’s more interest in their homes, they aren’t always getting an offer that matches what they think their house is worth. In fact, the average price per-square-foot of sales this year is up only 1.6 percent. A new home-price index developed by the Minneapolis Area Association of Realtors, which factors in seasonality and statistical variations, concludes that prices climbed only 2.7 percent in April.

“This is consistent with a market changing course,” said Cari Linn, president of the Minneapolis Area Association of Realtors.

Meanwhile, a new report from Fiserv Case-Shiller Indexes shows that while prices in the short term are struggling to gain traction, there is reason for optimism. The group said that while Twin Cities prices are expected to fall another 2.3 percent by the end of next year, the market will post a 5 percent annual gain by the fourth quarter of 2013.

There is already evidence, however, that buyers are willing to be a little more aggressive with their offers. Sellers are getting a higher percentage of their asking price — 93 percent. And the median price of new listings is up almost 7 percent — a sign that sellers believe that buyers are willing to pay a bit more.

Sellers are emboldened, in part, because there are so few listings. The number of houses on the market fell for the 15th consecutive month to the lowest level since January 2004. At the current sales pace, the existing inventory would last just 4.6 months. And houses are selling faster, too. On average, homes sold in 135 days, down almost 15 percent from last year.

“There’s very limited high-quality, move-in-ready inventory out there,” Fazendin said.

Jim Buchta • 612-673-7376

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North Loop Neighborhood is Family friendly

Baby boom reshapes North Loop

By MARISA HELMS
Tags: Anna Larsson, David Frank, Donovan Walsh, North Loop, North Loop Neighborhood Association

Anna Larsson, with her 4-year-old son, Magnus, and 8-month-old daughter, Astrid, is an advocate for families in the North Loop. She has created an online group for neighborhood parents and worked to build a popular playground in the area. (Staff photo: Bill Klotz)

Neighborhood aimed at singles makes room for kids

The North Loop, a hip and happening downtown neighborhood known for its nightclubs, restaurants (and a couple of landmark adult establishments), has become home to hundreds of tiny tots in recent years.

The nearly 300 percent surge in the area’s population since 2000 has included a three-fold increase in the toddler set (children under 5) over the same period of time.

So what’s going on? The North Loop, bordered by downtown Minneapolis, Target Field and the Mississippi River, is known for its swinging night life, not its swing sets and night lights.

The neighborhood is less than one square mile in size and is home to many of the city’s current and former industrial warehouses. Those who live there (mostly young professional men) are drawn to the area’s condos and spacious loft conversions. Amenities include being able to leave the car at home and walk to a job or any number of sporting and cultural events downtown.

An apartment boom is also occurring, with more than 1,200 units proposed or under construction in the area, according to a Finance & Commerce analysis.

While the area is still predominantly a haven for young, single professional men, a growing number of families are living in the North Loop. The lackluster real estate market has meant that a number of families are keeping their North Loop lofts out of economic necessity, but most who stay are there by choice.

Edina-raised Donovan Walsh is one dad who briefly thought of moving to other neighborhoods when his son, Henry, was born 15 months ago. But he says he and his wife chose to stay in the North Loop because they feel it’s a great place to raise their son.

“He loves it,” Walsh, 37, says about his toddler.

Walsh, his wife, Rachel, and Henry, live in a three-level, 2,500-square-foot loft on Washington Avenue, in a huge former refrigeration manufacturing warehouse.

Walsh understands that some people may be surprised that he and his wife choose to live in a downtown loft with a young child, given the panoply of single-family homes in the suburbs and other family-friendly neighborhoods in the Twin Cities metro area. But for Walsh and many other like-minded parents, the urban high-density setting is perfectly manageable, if not ideal, for bringing up baby.

“Before we moved to Minneapolis, we lived in Europe,” says Walsh, who owns a management consultancy. “A lot of European cities are very dense. Most people don’t have single-family homes, and they raise kids just fine. So it’s not a new concept by any stretch. It may be a new idea here, but it’s not a new concept.”

Walsh’s loft has 18-foot ceilings, large windows and colorful Abstract Expressionist paintings hanging on exposed brick walls. Near the front door is a wide, grated metal staircase — a bit precarious for a newly ambulatory baby — so Walsh and his wife have taken precautions, including installing a custom-made metal gate to block little Henry’s access to the upper floors, including an open loft area that has a 10-foot drop to the living room below.

Though the Walsh family’s loft is decidedly grown-up, you can’t miss the baby toys and pop-up books scattered in the big living room, part of an L-shape that also includes an office, dining room and kitchen.

“With all the open space, it’s easy to keep an eye on him,” Walsh says.

Walsh says about nine other children under 5 years old live in his building. The shell of the former warehouse has long, wide wooden hallways that are fun for small children, says Walsh’s downstairs neighbor, 41-year-old business strategy consultant Anna Larsson.

“When we come home from day care, there are a lot of balls and kids playing,” Larsson says. “In the winter my son can ride his tricycle up and down the hallway. It’s a great playground!”

Larsson’s 1,400-square-foot loft that she shares with her husband, 4-year-old son and 8-month-old daughter, was once a loading dock. It has a homey but unmistakable industrial vibe. Her son’s bedroom is actually a tiny door-less closet; a piece of cloth hangs in the threshold.

“It’s open plan living,” Larsson says. “Other than the bathroom doors and the entrance, there are no doors, so we don’t need a baby monitor.”

Larsson is an advocate for couples who choose to stay in the neighborhood instead of moving to the suburbs or other neighborhoods when they start a family.

She created an online group for North Loop parents and was instrumental in working with neighborhood parents and organizations to raise $100,000 to help build a playground at the Mississippi River and Fourth Avenue. The playground opened in late 2010 and has been a prime destination for local parents and families.

Larsson says she loves her loft and the North Loop because she can walk nearly everywhere she wants to go, including the playground. Like many who live in the Loop, Larsson says she likes the safe and friendly urban neighborhood. Her one complaint is that she would like to see more homes built with families in mind.

“There is a screaming need for family-friendly homes in the North Loop,” Larsson says. “There are aspects of loft-style homes that are fabulous — the big open spaces are great. But a few walled-off bedrooms would make it more family-friendly.”

Indeed, modern families with young children are still new to the North Loop, so it may take time before the housing market bends their way.

“Families are not typically early adopters of housing choices,” says Brent Rogers, a vice president with Greco LLC who is building hundreds of loft apartments in two warehouse conversion projects in the North Loop. “It would not be wise to build 240 units and have them all go to families — that’s not what we’re seeing in the market.”

Still, Rogers says he sees a general trend of families choosing to be closer to urban areas. To that end, he says his company is creating design flexibility that offers both open loft and more traditional floor plans that have defined rooms.

“There is the ability to have different demographics in those units whether it’s a family or roommates,” Rogers says.

Family-friendly housing is just one of the issues some downtown families may grapple with. School choice is another. A small survey of neighborhood parents indicated a split on whether they would consider moving out of the North Loop once their children reach school age.

North Loop Neighborhood Association President David Frank says the neighborhood is working on providing family-friendly amenities like more public schools and a grocery store. Actually, Frank can take the latter off his list. Whole Foods recently announced it would open a store in the old Jaguar car dealership at the intersection of Hennepin and Washington avenues.

“Living downtown is by far the best choice someone can make,” Frank says. “It’s close to everything. [Residents] can live car-free most of the time and can easily access the river and its trails, and all the culture and sports events, and restaurants.”

Frank’s message to North Loop residents thinking of starting a family: “We’re glad to have you here, and we’re working on things so that you can stay.”

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City of Minneapolis is now in support of New Vikings Stadium

Two Minneapolis City Council members have thrown their support behind the latest Minnesota Vikings Minnesota Vikings Latest from The Business Journals Follow this company stadium plan, meaning a majority of the council now supports the proposal.

Gov. Mark Dayton, Minneapolis Mayor R.T. Rybak and Minneapolis City Council President Barb Johnson announced the development Monday; Rybak and Johnson’s letter to Dayton announcing the support, together with individual letters from six other council members, has been posted online.

The members supporting the proposal, which would build a $975 million stadium where the Metrodome is today, include Meg Tuthill, Sandy Colvin Roy, Diane Hofstede, John Quincy, Don Samuels, Kevin Reich,

Tuthill told the Star Tribune she now supports the plan after seeing that none of the money will come from the city’s general fund.

Minnesota Public Radio, meanwhile, reported that construction-industry advocates and union members had lobbied council members on the issue.

The stadium plan has been stalled at the state Legislature, partially because some lawmakers have been waiting for the Minneapolis City Council to get behind the project.

Last week a poll by a pro-stadium business group said 61 percent of Minnesotans support the current plan.

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Minnestota Vikings Stadium | Will it boost development?

The Metrodome has been pretty much sitting by itself in downtown Minneapolis for 30 years. So why would a new Vikings stadium boost development?

The Pioneer Press asks the obvious question and comes up with some interesting answers. For one thing, when the Metrodome was built, business leaders worried that it would draw entertainment business away from elsewhere in downtown, so the zoning didn’t allow for it, says Sam Grabarski, president and CEO of the Minneapolis Downtown Council . That presumably wouldn’t happen this time.

Still, the report also notes that there are plenty of skeptics of the Metrodome-site plan, including developers and the 2020 Partners group, which want to raze the Metrodome and build a neighborhood or corporate campus there.

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Pilsbury A Mill Complex

The Star Tribune has renderings of what Dominium’s    Dominium Latest from The Business Journals Follow this company apartment complex would look like at the Pillsbury A Mill complex.

>Click here to see the renderings.

Plymouth-based Dominium wants to build 240 affordable housing units at the site, which was placed on the National Trust for Historic Preservation’s    National Trust for Historic Preservation Latest from The Business Journals Follow this company 2011 list of America’s Most Endangered Historic Places. The mill was once the world’s largest flour mill.

Late last year, Doran Cos.    Doran Cos. Latest from The Business Journals Follow this company bought another section of the mill site, which is across the river from downtown Minneapolis. Doran wants to build 375 luxury apartments there.

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North Loop Minneapolis Apartment Project announced by “Opus Development”

The downtown Minneapolis apartment boom continues with a new project from Opus Corp., which said Thursday that it plans to build 106 units on top of 12,000 square feet of retail space.

Velo, the French word for bicycle, will pay homage to the city’s distinction as one of the most bike-friendly communities in the country, said Tom Lund, Opus vice president of real estate development.

“The North Loop is a fabulous neighborhood with a lot of great things happening,” Lund said.

The 106 units is in addition to nearly 1,000 apartments under construction, or near construction, in the North Loop neighborhood, a once-gritty warehouse district that connects the downtown central business district with the Mississippi riverfront.

Because of its prime location and abundance of redevelopment opportunities, the neighborhood is a hotbed of development activity in the Twin Cities. Just across the street, Ryan Companies has already started construction on a 580,000-square-foot mixed-use project, including a Whole Foods grocery store and 286 apartments.

Demand for rental apartments in downtown Minneapolis has been immense. Marquette Advisors said that the average vacancy rate in the area was less than 2 percent at the end of 2011.

David Frank, chair of the North Loop Neighborhood Association, said that the group has reviewed the plans and supports such projects. It’s also evidence of how a project like the new Whole Foods store can lead to other developments, he said.

“It shows the leverage that results from adding amenities to a neighborhood that’s in transformation,” he said. “It brings more attention from people who are willing to invest.”

Lund agrees. “With Whole Foods as our neighbor, that’s a real plus.”

Opus is already deep in the planning process for the Nicollet Residences, a $100 million, 33-story tower at Nicollet Mall and S. 5th Street. Lund said the company is getting bids for the project and hopes to break ground this summer.

Velo will be built on a site owned by Merit Printing at 103 N. 2nd St. The company has a contract to buy the property, and expects the project to go before the city Planning Commission in early April.

The apartments will be ready for occupancy in August 2013, Lund said, and will rent for an average of $2 per square foot. The group plans to attract commercial tenants that will honor the spirit of the project. Lund hopes that will bring active renters who will make use of the nearby recreational paths and other outdoor activities. A locally owned restaurant, yoga studio and bike shop are all on the wish list.

“We’re trying to build on creating more of a healthy lifestyle by including some of the things that would be attractive to people in this neighborhood,” Lund said.

Jim Buchta • 612-673-7376

 

 

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