Even though the upscale Radisson Red hotel is no longer part of the Downtown East development, officials from Ryan Cos. are still working to retool their initial proposal for that portion of the project. That will likely include more apartments on the site, called "Block One."

Downtown East is the $400 million mixed-use development near the new Vikings stadium in Minneapolis. A related part of the plan involved building a 150-room hotel and 200 additional apartments atop a 1,610 parking ramp that will be owned by the Minnesota Sports Facilities Authority. The hotel and apartment component represented another $100 million in investment.

Ryan was expected to pay the city $5.7 million for the land and the so-called "air rights" above the ramp, which will be used by office employees and fans using the stadium. The city opted to back the Ryan plan over a $63 million apartment proposal submitted by stadium builder Mortenson Development. The air rights dollars are expected to help pay for the park's operations.

However, on Monday, Ryan confirmed that the hotel portion of the project wasn't happening. "As we got deep into the design and pricing, the reality was that we couldn't make it work," said Tony Barranco, vice president of development for Ryan Cos.

He said Ryan is reworking its previous proposal.

Matt Lindstrom, city spokesman, said the city is "actively working" with Ryan and the MSFA on the proposal. "In a complex deal like this, there are many moving parts to be addressed, but we look forward to a project proceeding within Block One, as well as working towards a hotel in the Downtown East area. Once a revised plan comes together, the City Council will review it," he said.

DML -, Star Tribune

Star Tribune staff writer Eric Roper contributed to this report.