City Pays $2.4 Mil to Settle Warehouse Dispute

MINNEAPOLIS-About a month after initiating foreclosure action against the developers of the 1.9-million sf former Sears warehouse site, the city wants to settle instead. It has tentatively agreed to pay STA Associates more than $2.4 million for the project on East Lake Street in Minneapolis.

One reason prompting the city’s action, which was approved by the Minneapolis Community Development Agency, was interest that Allina Health Systems expressed in the north half of the 17-acre site for expanding its campus and adding a parking ramp.

Developers STA Associates, a partnership of Ray Harris and David Jasper, had proposed building a $140-million redevelopment project with more than $10 million in Federal and local government subsidies. The project would have created Great Lakes Center with more than 1.9 million sf of office, light manufacturing and retail space.