How to spend $2.3 billion on Minnesota’s largest city
A metro Minneapolis developer plans to spend a record $2 billion building a new hotel and office complex, a project that is likely to be the biggest financial boon for the city.
Citibank Properties, which is redeveloping the former Minnesota State University Minneapolis-St. Paul campus, plans to build a $1.6 billion hotel, a $250 million office building and a convention center that will have the potential to be Minneapolis’ largest economic development project in more than 40 years, according to a draft environmental review.
The development includes a new casino, hotel, retail, residential and a parking garage, which would be located in the northwest corner of the city on University Avenue.
The project would be among the largest in the state, with an estimated cost of more than $2 million per acre.
The project would build on a $400 million development already under construction in the city’s southwest corner.
The draft environmental report for the project, which was submitted to the city last year, says the hotel and retail complex will add $300 million to the total value of the hotel, which currently is valued at $1 billion.
Citing the city of Minneapolis’ recent approval of an expansion of the University Square shopping mall, the draft report said the hotel will generate $600 million in new annual property tax revenue.
The hotel and the shopping mall will generate another $200 million in revenue over the same period, according the report.
Civics instructor and author of the new book, “A Better Place to Work,” says the $2bn investment could generate more than 1,000 new jobs in the area, along with more than a million in annual economic benefits.
The hotel and hotel office building would be one of the largest office complexes in the world, with about 1,200 employees, according a spokesperson for Citibank.
A similar hotel-and-office complex in New York City is expected to be completed this year, the company said.
The city has been on track to break ground on the new hotel in 2019.
A new development in the northern part of the area is slated for completion in 2021.
“It’s a great investment for the downtown, it’s a good investment for downtown, but it’s going to create a new level of employment and economic opportunity for this city,” said Mike McKeown, a city commissioner.