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St. Paul-based DEED requests proposals for office space for 600 workers

Photo by Renee Jones Schneider

The Minnesota Department of Employment and Economic Development (DEED) is on the hunt for an estimated 190,000 square feet of office space in the Twin Cities.

DEED, which is currently housed in the First National Bank building in downtown St. Paul, recently released a request for proposals for office space for its 600 employees. In the request, the department said it is looking for contiguous space that provides windows and natural light within a 10-mile radius of the State Capitol in St. Paul. That radius would include downtown Minneapolis and St. Paul as well as numerous suburbs though it’s possible DEED could also renew its lease at First National Bank.

“It is the intent of the State of Minnesota (“State”) to enter into a lease for space in an existing or newly constructed building that will best serve the Department of Employment and Economic Development,” according to documents.

In the request, the department said it would prefer a space where it could expand as much as 70,000 square feet. It would also prefer parking nearby.

Proposals are due Nov. 22, with DEED wanting to occupy a space no later than March of 2021.

Redevelopment planned along Valley Creek Road in Woodbury

The Key Inn motel and the former Spire Credit Union in Woodbury are planned to be demolished to make way for a new mixed-use development that will include a medical office building and retail spaces.

On Wednesday, the Woodbury City Council approved Minneapolis-based Lupe Development Partners’ planned unit development application for the project. The plan is to replace the motel, located on Valley Creek Road close to Interstate 494, with a 34,000-square-foot medical office building.

The developer will also demolish the former Spire Credit Union, which has served as an office building, and construct a 5,000-square-foot drive-through restaurant and a 5,000-square-foot retail building anchored by a new credit union. Two other office buildings on Woodlane Drive would also be renovated for multi-tenant use. The Cowboy Jack's restaurant nearby isn’t a part of the development project.

“This is too good of an intersection to have these really outdated circa 1970s, old buildings there,” said Steve Minn, vice president and chief financial manager of Lupe Development. “It really needs to be refreshed.”

Lupe Development plans to begin demolition of the Key Inn early next year and the former Spire Credit Union building in April. After reconstruction, the first new buildings will open September 2020.

Marketing and brokerage of the retail building has been assigned to Sara Martin and Molly Townsend of Colliers International. The medical office building is being marketed by Aaron Barnard and Anne Stahley of Cushman & Wakefield.