Most of the city money comes from tax increment financing.
In February, Allina Hospitals & Clinics chose Midtown Exchange as the future headquarters for the state's largest nonprofit health care delivery system. Minneapolis-based Ryan Cos. will be developing the site with Allina Commons as a major cornerstone of that development. Allina will be signing a long-term lease for the 250,000-sf deal with Ryan Cos.
Besides Allina, the Midtown Exchange would be home to an international marketplace, housing, offices and the neighborhood's only hotel, which would be connected to Abbott-Northwestern Hospital.
The project costs once estimated at $140 million have climbed to $180 million because of changes such as relocating the hotel on the site. The bulk of the city's costs involve tax-increment financing and affordable housing money.
Allina says the costs to move, above the lease expenses, are about $7.9 million, but will be offset by the sale of two real estate holdings from the consolidation--one at 1801 Nicollet and the other on Willow Street near Loring Park.
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