Downtown Minneapolis’ first Radisson Red upscale hotel won’t be part of the $400 million Downtown East development in Minneapolis near the new Vikings stadium.
The mixed-use project, which is being developed by Minneapolis-based Ryan Cos., had included a 150-room hotel — a new concept by Minnetonka-based Carlson Rezidor Hotel Group, along with 200 apartments above a 1,610-stall parking ramp. The tower was expected to span about 27 stories.
But Collin Barr, president of Ryan’s NorthCentral region, said, “Our development team has worked very intensely over the last few months to try and reconcile the cost of a hotel and apartment project together in one large tower. Ultimately, we determined we could not deliver the project based on the required budget.”
It’s unclear what will happen to the apartment component of the parking tower; Ryan was partnering with Chicago-based Magellan Development Group on that component. Ryan officials could not be reached for further comment.
Robert Kleinschmidt, chief development officer for Carlson Rezidor Hotel Group, said in a statement Monday that the firm is “disappointed that the numbers did not work out to fit a Radisson Red hotel.”
He added that Carlson Rezidor remains “very excited and committed to the growth of our new Radisson Red hotel brand. As we move forward, we expect to secure other development opportunities in downtown Minneapolis including the potential of other sites near Downtown East that will support a Radisson Red hotel project.”
The Minnesota Sports Facilities Authority, the public body in charge of the $1 billion Vikings stadium construction, will ultimately own the parking ramp.
In March, the city awarded Ryan the “air rights” to develop the space above the ramp into the hotel and apartments, representing another $100 million in investment for the project.
A rival bid proposing a $63 million, 300-room hotel under the Marriott flag came from Golden Valley-based Mortenson Development, but city officials opted for the Ryan proposal. Officials from Mortenson, also the construction manager of the Vikings stadium, could not be reached for comment Monday.
The remaining portion of the Ryan development, which is not affected by Monday’s news, includes two office towers for Wells Fargo & Co., 200 apartments, restaurant and retail space, and a public park that spans nearly two blocks.