United Properties has again received more time to find funds to finance its hotel and residential tower in downtown Minneapolis.
The Minneapolis City Council last Friday granted the Twin Cities developer an extension until the end of June with the option to grant additional extensions through the end of the year. The city-owned lot that is commonly referred to as the Nicollet Hotel Block is currently used for surface parking.
United Properties has proposed to build a $350 million, 40-story tower that would include 280 hotel rooms and a mix of apartments and condos on the block, which is at the north end of Nicollet Mall near the Minneapolis Central Library. The firm had been in talks with Four Seasons Hotels Ltd. to open a luxury hotel in it.
But financing has proved difficult to secure. While United Properties was originally supposed to have secured its financing by last summer, it has been granted extensions. In January, the city agreed to give United Properties development rights through the end of April, after the firm paid fees to the city totaling $100,000.
The new agreement gives United Properties until June 30, with incremental extensions of one to two months. The developer will have to pay $50,000 in fees for the initial extension and $25,000 for each additional month.
The payments would be credited against its eventual purchase of the property.
“We continue to see strong interest in this building from potential lease tenants,” said United spokeswoman Sheila Thelemann.
She said the company hopes to provide more details in the next month or so.