Plan Approved for New $763M Minnesota Multi-Purpose Stadium
By Gabriel Circiog, Associate Editor
The Minnesota Sports Facilities Authority, in collaboration with the Minnesota Vikings, recently announced it has reached an agreement with Mortenson Construction on a plan for the new Minnesota Multi-Purpose Stadium. Approval included agreement on a guaranteed maximum price of $763 million, backed by a letter of credit from the Vikings.
The agreement finalizes the Sports Facilities Authority’s contract with Mortenson as the construction manager. Mortenson now has the authority to move forward with construction, and a number of subcontracts will be executed in the coming weeks, many of which will go to Minnesota-based companies.
Golden Valley-based Mortenson will work in association with Minnesota’s largest African-American owned construction company, Minneapolis-based Thor Construction. Other locally based companies awarded contracts include Eden Prairie-based minority owned Tarraf Construction, Burnsville-based Ames Construction, Frattalone Cos. of Little Canada, Veit Cos. of Rogers, Minneapolis-based LeJeune Steel Co. and Danny’s Construction of Shakopee.
While the construction cost will total $763 million, the overall project cost is anticipated at $975 million. Completion is set for July 2016. The Vikings provided additional financing in the form of a letter of credit worth $26.4 million, including the team’s previous contingency of $13.1 million and an additional $13.3 million.
“Reaching this major milestone with Mortenson today is a significant move forward; signing this GMP means we can order steel on Monday and construction begins,” said MSFA Chair Michele Kelm-Helgen. “The Vikings have provided the construction project with a $26.4 million letter of credit that allows the building to keep major design features intact so Minnesota will have one of the most iconic stadiums in the nation. If there are contingency savings that are realized in the construction process, some of this money may not be needed, but we are very appreciative of the team’s significant contribution to the stadium.”
John Wood, senior vice president at Mortenson Construction, said: “Today’s agreement signals a pivotal point where we can begin to put Minnesotans to work building an amazing facility that will serve the community and generations of fans for years to come. This is the time when this project becomes a reality for the thousands of workers and hundreds of companies who will join with us and help build a piece of Minnesota’s history.”
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Renderings courtesy of www.vikings.com.Tags: Ames Construction, Architecture/Design, Commercial, Consumer, Danny’s Construction, Developers, Development, economy, Finance/Investment, Financiers, Frattalone Companies, Hospitality, Investors, LeJeune Steel Company, Local, Managers, Minneapolis Lead Story, Minnesota Multi-Purpose Stadium, Minnesota Sports Facilities Authority, Minnesota Vikings, Mortenson Construction, National, operations, Owners, Policy, Professional, property management, Property Type, Regional, Tarraf Construction, Thor Construction, Veit Companies