Minneapolis construction investment surpasses $1 billion as city rebounds
MINNEAPOLIS (FOX 9) - To those who said Minneapolis would never recover, city officials say new construction investment numbers tell a different story.
Minneapolis construction investments
What we know:
City leaders in Minneapolis know what has been said of their city in recent years: that between the destruction following the death of George Floyd and the pandemic that emptied out offices, the city was on a decline from which it could not recover.
Leaders insist that construction numbers prove those critics wrong.
Big numbers, bigger buildings
By the numbers:
For the 14th year in a row, the city approved more than $1 billion in construction projects in 2024 – hitting a total of $1.8 billion.
The biggest investment is nearly $600 million to add a new surgical and critical care wing at Abbott Northwestern Hospital in the Phillips neighborhood, which city leaders say is an impact that can’t be understated.
"That project alone is right up there with the value of the U.S. Bank stadium investment at its time of building," said Margaret Anderson-Kelliher, the city’s Chief Operations Officer, on Tuesday. "There’s a lot going on in our city and that’s the message."
Fewer condos, more affordable housing
Dig deeper:
Much of the work in the city revolves around affordable housing.
The second-biggest project on the city's top-10 list is going up at the corner of 30th and Nicollet. It was here that a Wells Fargo bank burned during the rioting in May 2020.
In its place is the $45 million "Opportunity Commons" project featuring 110 units of affordable housing, plus retail space for locally owned small businesses and a new Wells Fargo branch on street level.
"This is PPL’s (Project for Pride in Living) biggest development to date, and we’re a 53-year-old organization," said PPL President Karla Henderson. "Transforming the former Wells Fargo branch into a vibrant community."
New construction plus rehab projects
What they're saying:
In years gone by, it was common to see a downtown dotted with construction cranes, as developers raced to build condominiums when both younger buyers and retirees sought to move downtown.
But projects now, Minneapolis Mayor Jacob Frey says, revolve around smaller affordable housing projects – some are new construction, but others are rehabbing existing buildings. All types of housing stock is what the city has committed to expanding, he says.
Of the nearly 45,000 building permits issued in 2024, a vast majority are for existing buildings, many of them renovations on occupied homes.
The city’s economic development director believes it’s a sign that residents aren’t fleeing the city, but rather embracing it.
"Minneapolis is coming back," said Frey. "We’re on an extraordinary rebound right now and you don’t need to take my word for it – $1.8 billion worth of new investment in our city. The future is extraordinarily bright."