Pending various layers of approval, Irgens could be chosen as a development partner for the property next to the future Minnesota United FC stadium.
United FC’s new stadium is slated to be built in St. Paul’s Midway neighborhood. A section of the stadium’s footprint is currently occupied by the Midway Shopping Center, and at least a portion of that will need to be demolished for the project to continue.
To move forward with the plan, the St. Paul Port Authority is seeking a development partner that would enter into a joint venture and, in the future, take part in purchasing the site. The authority’s staff has recommended that Irgens be chosen as the company to entire into the project, joining the authority and United FC, but the plan still requires further discussions. More from The Star Tribune:
The selection of Irgens — which has worked on hundreds of commercial and health care real estate developments across the country — has not been finalized. Capital City Properties, a nonprofit subsidiary of the Port Authority, will vote next week on a resolution to negotiate and enter into a joint venture with Irgens and the soccer team.
Irgens will have 60 percent ownership in the joint venture, the soccer team will have 30 percent and the Port Authority will have 10 percent. However, the Port Authority, which is a nonprofit government agency, will not contribute financially to the redevelopment of the site, President Lee Krueger said.
The Port’s investment was taking the risk of entering into a master lease with RK Midway, which owns the shopping center, he said. The Port Authority stepped in as a master tenant to help navigate financial complications with the property, he said.
When it comes time to shift from leasing the property to purchasing the site — exactly when that will be is not yet clear — the Port will say “no” and United and Irgens will take over, Krueger said.
The stadium will be built as part of a 34.5-acre development project that is expected to take place in the area. No firm date has been set for the stadium’s opening, as United FC has been expected to move into the facility either during the 2018 MLS season or at the start of the 2019 campaign.
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