What’s going on with the 800 Washington Ave S “Guthrie Liner Parcel”?
It’s nearly June 2023, and after over eight years of requests for proposals (RFP), rounds of negotiations, and changing plans, we still don’t have shovels in the dirt at 800 Washington Ave S, also referred to as the “Guthrie Liner Parcel”. This development has spanned three Council Members, Jacob Frey, Steve Fletcher, and now Michael Rainville, with two approved developers and several iterations of site plans.
Finance & Commerce, March 18, 2015: “The vacant Minneapolis parcel at 800 Washington Ave S is a short walk from the future Minnesota Vikings stadium (left) and the Downtown East mixed-use development (background, right). (Staff photo: Bill Klotz)”
Where do we stand now with 800 Washington Ave S?
The lot at 800 Washington Ave S, also referred to as the “Guthrie Liner Parcel” is currently a dirt field with a concrete wall and exposed utility connections at the north end of the lot. The lot has been in this shovel-ready state since at least 2015, before the East End development (240 Chicago Ave) by Shamrock brought a new Trader Joe’s to the neighborhood, and the Iron Clad development (811 Washington Ave S) brought new housing, hotel, and office space.
There are exclusive development rights with AECOM, but they have not started development since September 2018, with several rounds of extensions and new plans.
What’s the history of 800 Washington Ave S?
The City-owned lot at 800 Washington Ave S had gone through two RFP processes and several site plans with each developer. Here’s a timeline of major milestones:
March 18, 2015. City of Minneapolis releases a RFP for the 0.56-acre property. “It is a very hot parcel along a major corridor in the city,” said Council Member Jacob Frey, speaking to Finance & Commerce. “We are expecting some attractive proposals.”
May 21, 2015. City of Minneapolis announces it has received three proposals, from M.A. Mortenson Company, Saturday Properties, LLC, and Sherman Associates Development LLC. According to the City media release, “If housing is included in the proposal, the City would like to see a mixed-income project with at least 20% of the proposed units affordable to households at or below 50% of Area Median Income.”
August 25, 2015. City of Minneapolis moves to award negotiating rights. At this time, the three proposals are the following:
Saturday Properties
Six-story mixed use building
Restaurant and retail: Approximately 10,500 sq. ft. on ground level
Hotel: 166-room Element by Westin hotel on floors 1-6 (98,900 sq. ft.)
Valet Parking: For hotel and restaurant – a minimum of 140 stalls would be needed in the Riverfront Ramp at market rates
Purchase Price: $2,850,000 ($117 psf)
Total Development Cost: $31.0 million
Sherman Associates
Nine-story mixed use building – floor 9 (rooftop) is only partially enclosed
Restaurant/Recreation: Pinstripes bowling and bar, with approximately 25,800 sq. ft.
Hotel: 140-room Kimpton boutique hotel on floors 1 and 3-7 (78,960 sq. ft.)
Office: Approximately 15,800 on floor 8
Public Parking: Available in the Riverfront Ramp
Purchase Price: Initially at $2 million, later revised to $3.5 million ($143 psf)
Total Development Cost: $47.8 million
M.A. Mortenson
Nine-story mixed use building
Restaurant and Bar: Approximately 5,300 sq. ft. bar on ground floor
Other Retail: Approximately 2,500 sq. ft.
Hotel: 188-room Hyatt Centric hotel on floors 1-8 (106,669 sq. ft.)
Office: Approximately 14,000 sq. ft. on floor 9 (plus 1,000 sq. ft. terrace)
Public Parking: Available in the Riverfront Ramp
Valet Parking: For hotel and restaurant – up to 140 stalls would be needed in the Riverfront Ramp at market rates
Purchase Price: $3,784,945 ($155 psf)
Total Development Cost: $49.4 million
December 10, 2015. As the Mortenson project was on its way to being approved, here is what the renderings were at that time.
Project rendering by ESG architects and Mortenson Construction for 800 Washington Ave S with a Hyatt Centric Hotel on December 10, 2015.
February 16, 2016. The project moves forward to the Community Development & Regulatory Services Committee for approving the land sale of the City-owned parcel to Mortenson. The final sale price was proposed to be $3,784,945. Council Member Jacob Frey made the motion and it was carried on a voice vote. The action was adopted by the full Council on February 26, 2016 and signed by Mayor Betsy Hodges on March 1, 2016.
August 4, 2017. M.A. Mortenson abandoned its plans for 800 Washington Ave S. “We have been working through the development process during a rapidly changing investment period and have decided that current market timing is suboptimal for our needs,” the company said in a statement sent to Finance & Commerce.
July 9, 2018. After a second RFP process, City of Minneapolis receives proposals from Sherman Associates, AECOM, the 45 North Group and Oppidan. The Development Tracker Minneapolis has a great run-down of each of the proposals.
August 21, 2018. The Economic Development & Regulatory Services Committee approved an exclusive development rights contract with AECOM. It passed on a voice vote. The action was adopted by the City Council on August 31 and signed by Mayor Jacob Frey on September 5, 2018.
December 8, 2020. The Business, Inspections, Housing & Zoning Committee approved a six-month extension of AECOM’s exclusive development rights, with the option for additional staff-led extensions determined by the Director of Community Planning & Economic Development. The vote was unanimous. The action was approved by the City Council on December 18, 2020 and signed by Mayor Jacob Frey on December 22, 2020.
The 15-story plan by AECOM for 800 Washington Ave S.
February 16, 2022. After several six-month extensions during the pandemic, AECOM started fresh with a new site plan for a 15-story mixed-used building with 300 new homes. I encourage you to check out the article in The Development Tracker Minneapolis.
June 21, 2022. The Business, Inspections, Housing & Zoning Committee approved a land sale to 800 Washington Ave, LLLC (AECOM) for $3.2 million and authorized an execution of the redevelopment contract for a similar 15-story plan with 284 homes. The measure passed the committee on a voice vote. The actions were adopted by the City Council on June 30, 2022 and signed by Mayor Jacob Frey on July 5, 2022.
May 28, 2023. According to the term sheet approved by the City Council and Mayor, the land sale closing date is approved for 12 months from the City Council approval and up to an additional 12 months with the approval of the CPED Director. We are now approaching the first 12 months from the City Council approval. With another CPED extension, the option to buy the land runs out on June 30, 2024.
Where do we stand now?
AECOM essentially has until June 30, 2024 to put shovels in the dirt and close on the agreed land sale. If that doesn’t happen, it’s probably a perfect time to reevaluate City parcel land sales and redevelopment. The City owns over 100 vacant or undeveloped lots in Minneapolis. How many more years must these properties stay vacant in the middle of a housing crisis? That’s a question that every elected official and candidate should have a good answer to.
800 Washington Ave S as documented on May 28, 2023.