Minneapolis — The state Legislature approved $9.9 million in public land to be donated to a private company in a $1.9 billion development that would transform an existing vacant lot into a $200 million development with a hotel, office, grocery store, housing and hotel.
The $5.3 billion project is called Minnesoman Properties.
The project includes $3.5 million from the Minnesota Housing Development Corp. and $6.4 million from Minnesota Land Bank, which is funded by Minnesota’s largest property owner, Crain’s Business Journal reported.
“This is a win-win for Minnesoteans,” said Sen. Mark Ferrandino, D-Mankato.
“The land will benefit Minnesoans by bringing more affordable housing, jobs and economic growth to Minnesota.
And it will help Minnesowans pay their fair share of property taxes.”
The land, known as Minnesomans Park, will be used for housing, office space and retail.
It is expected to be completed by 2021.
The property, which has a planned development of 400,000 square feet, will also include residential and commercial units.
The land includes about 25,000 acres of open space and about 10 acres of undeveloped agricultural land.
Land bank officials estimate that the project will create about 150 jobs.
Minnesomer Properties plans to construct hotels, restaurants, apartments, retail and office space, and to create 300 new full-time and part-time jobs.
The company also has an office tower that will include a restaurant, grocery and pharmacy store, offices, a restaurant and a second floor.
The proposed development includes a hotel and a hotel-casino.
“There are a lot of opportunities for the development of new jobs and development of businesses in this state,” said Gov.
“We are creating the largest tax base for Minnesota.”
The project is the largest public land development in the state.
The development is part of a $10.4 billion, five-year, $10 billion land bank.
The Land Bank is also part of the Minnesota Department of Transportation.
The bank, which will create a $6 billion bond, will have a capital of $1 billion.
The Minnesota Legislature voted in October to allocate $3 billion in land for the project.
It has been approved by the governor and the Legislature’s finance committee, which was created in 2015.
The public land was set aside for a planned $7.2 billion development of a mall and office building, but the project was abandoned because the property has a potential to become a hotel.
It was slated to be a mixed-use complex with about 500 apartments and hotels.
Dayton said the $2.6 billion project has the potential to create 500 jobs and $3 million in economic impact.
The county is seeking to secure additional land to build the development.
The deal was approved by county commissioners, who are expected to vote on the deal Tuesday.
The commission is made up of commissioners from Minneapolis, St. Paul, Duluth, Oakland and Minneapolis.