The Community Development & Regulatory Services Committee approved the $3.8 million sale of city-owned land in the Mill District for a proposed hotel project.
The City of Minneapolis is selling land, known as the Guthrie Liner Parcel, at 800 S. Washington Ave. to Mortenson Development. The Golden Valley-based developer won exclusive development rights for the land last fall where it intends to build a 203-room Hyatt Centric hotel with office, retail and restaurant spaces.
The nine-story project would have the hotel on floors 1-8 and 14,000 square feet of office space for the American Academy of Neurology on the top floor. On the main level, Mortenson is planning to have 2,500 square feet of retail space on the corner of Washington & 9th and a 5,300-square-foot restaurant and bar at Washington & Chicago. The developer also has an option of adding a tenth floor for additional office space for the American Academy of Neurology.
The total development cost would be just under $50 million. The $3.8 million land sale translates to about $155 per square foot.
The proposal would utilize parking in the nearby city-owned Riverfront Ramp. The city has used the vacant site to dump snow from the ramp and a service alley.
Last spring, the city received three proposals from Saturday Properties, Mortenson and Sherman Associates for three different hotel projects on the site. Mortenson previously proposed a 188-room hotel with a restaurant from Dallas-based Culinaire International, the company behind Sea Change in the Guthrie. The city wanted at least a four-story development with retail space on the first floor, especially on both corners fronting Washington Avenue.
Mortenson is planning to break ground on the mixed-use development later this summer or fall with a 15-month construction. According to a city memo, the developer expects to open the project by next summer before the Super Bowl comes to Minneapolis in February 2018.