The holdout, Walser Buick, has traded lawsuits with the City,which is pursuing condemnation proceedings. In fact, condemnationhearings began recently to raze Walser Buick's car dealership tomake way for a new corporate headquarters campus for Best Buy Co.Hennepin County District Court Judge Gary Larson told the two sidesto mediate their differences. He is expected to order the two sidesto enter into mediation on the issue, says Wendy Burt, aspokeswoman for Best Buy. The city argues it long had plans toredevelop the area; Walser attorneys plan to demonstrate the landis not blighted and plans for redevelopment are quite recent.

Earlier this week, the city council issued a determination ofadequacy for the environment impact statement, which studied theimpact of the project on traffic, streets, land use, noise, air andwater quality. Best Buy will spend $160 million to build the 1.5million sf campus for an anticipated 7,500 employees. That's $10million more than initially expected due to higher propertyacquisition costs, Burt says. Four buildings will be constructedwith a commons area containing Best Buy University, a fitnesscenter, transit stop, parking facilities and employeecafeteria.

Next month, Best Buy expects to receive an indirect sourcepermit from the Minnesota Pollution Control Agency, which wouldallow Opus to close on its purchase agreements with the propertyowners. A ground breaking is not expected until April or May, Burtsays. The project is expected to be completed in late 2002.