Wilf still looking to redevelop Dome area

Last month, the Vikings blamed turmoil in the nation's credit market in canceling a $45 million deal to buy four city blocks near the Metrodome from the Star Tribune.

But representatives of Vikings owner Zygi Wilf later told property owners that Wilf still intends to buy land near the Dome and orchestrate a revitalization of the neighborhood -- including the Star Tribune property.

A Vikings vice president said Thursday that Wilf still plans to invest "hundreds of millions of dollars" toward a proposed $954 million Vikings stadium and revitalizing the Downtown East neighborhood, but one property owner said Wilf never intended to buy all the lots in the area.

Instead, the owner said, Wilf's representatives have asked landowners if they would cooperate with his development plan -- even if Wilf doesn't buy their property.

Wilf, who six months ago said he was prepared to pour $1 billion into a new stadium and the reshaping of Downtown East, has bought four lots around the Metrodome. He declined Thursday through team Vice President Lester Bagley to be interviewed for this article.

The land deal between the Vikings and Avista Capital Partners, owner of the Star Tribune, fell apart Aug. 29, with the Vikings citing escalating interest rates. But at least two area landowners said they have had discussions with Wilf's representatives since, and turmoil in the nation's credit market never was a factor in those discussions.

One S. 3rd Street lot owner, who asked to remain anonymous, speculated that Wilf was concerned about paying $45 million for four city blocks from the Star Tribune, knowing that Hennepin County assessed those four blocks plus another owned by the Star Tribune at $21.5 million last year.

When a judge ruled last month that land for the Twins' new ballpark on the other side of downtown was valued at $60 per square foot, the Vikings may have became concerned about paying $105 per square foot for the Star Tribune property, said a source close to the deal. (At $60 per square foot, the price for the four Star Tribune blocks would have been $28 million.)

But that -- and the collapse of the Interstate 35W bridge -- has not stopped Wilf's representatives from contacting area landowners.

Some owners not contacted

Basant Kharbanda owns several downtown lots, including one just east and another just south of the Metrodome. He said that Don Becker, a broker from Wilf's New Jersey-based Garden Homes company, asked Kharbanda whether he would go along with Wilf's urban development plan and use the same architect if Wilf passed on buying Kharbanda's property.

Kharbanda says he has seen a list of two dozen area property owners that Wilf's representatives have contacted, presumably to buy land. But other neighborhood property owners, such as Mike Marinovich or representatives of Valspar Corp., told the Star Tribune they never have heard from Wilf.

"Zygi Wilf does not have to buy all this property to make his plan work smoothly -- as long as he can convince other property owners to go along with him," Kharbanda said. "He never said he was going to buy all the property near the Metrodome.

"Don Becker told me they're interested in my property but may not buy it. I believe they've told [other owners] the same thing. They were concentrating on the Star Tribune property first."

The Star Tribune property "remains in Mr. Wilf's plan to reshape Downtown East," plans that include not only a new stadium but also transforming the light-rail station by the Metrodome into a "Winter Garden," Bagley said. Bagley emphasized that Wilf hoped the Star Tribune land would be part of the area revitalization "whether we own the property or not."

Statewide stadium tour

But everything hinges on the stadium gaining public financial support. The Vikings' Metrodome lease expires after the 2011 season. The Metropolitan Sports Facilities Commission, owner of the Metrodome, has championed a new stadium on the Dome site and would like to lock the Vikings into a 30-year lease.

The commission Thursday outlined plans to tour the state with Vikings representatives in November, hoping to gauge the public's interest and concerns for a new Vikings stadium.

Wilf made a $2 million payment to Avista in June after agreeing to buy the Star Tribune land except for the 425 Portland Av. S. block, the newspaper's headquarters. That money was refunded after the deal was canceled, a source close to the deal said.

While there is quiet speculation the Vikings may again approach Avista and try to buy the property at a reduced price, Avista partner OhSang Kwon said, "I have no idea what their plans may be."

Asked of the possibility of a third party buying the Star Tribune land and then trying to sell it to Wilf, Kwon said: "Everyone knows we tried to sell it. People probably know it's for sale. But it's not like we're in a rush to sell it."

Asked whether talks with the Vikings might be rekindled, Kwon said, "That depends on a lot of things. I don't want to speculate."

At stake in all this is more than a new stadium or a new look to the neighborhood surrounding the Metrodome. The Vikings were recently assessed to be worth $782 million, last among National Football League teams, according to Forbes magazine. The Dallas Cowboys, whose new $1 billion stadium opens in 2009, jumped 28 percent in value over last year to a league-leading $1.5 billion. It's the first time in eight years that the Cowboys have topped Forbes' list.

Paul Levy • 612-673-4419

Paul Levy • plevy@startribune.com