Kaeding set to resume construction on downtown St. Paul hotel destroyed by arson
Construction is slated to resume in the spring on a new downtown St. Paul hotel that was leveled more than a year ago by arson, according to the developer behind the project across from the Xcel Energy Center.
The $30 million, 120-room Courtyard by Marriott could open a year later.
“The pandemic, and insurance, was a long road,” said Brody Nordland, a partner with the Kaeding Development Group, in an interview. “Those two items added time and costs. We’re glad to be back underway.”
Work on the five-story hotel came to a halt in August 2020 — about six or seven months before expected completion — when a suspicious fire destroyed much of the construction site. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives later ruled the blaze was intentionally set. No one has been charged with the crime. The original opening date had been scheduled for March 2021.
“There is more to be solved in this case, and we believe the public may be able to help,” said ATF Assistant Special Agent in Charge Jeff Reed, of the St. Paul Field Division, in an email. “We encourage people who may have knowledge about this incident to reach out. We specifically (want to) find photos or video of individuals in or around the area during the time of the incident to be especially helpful.”
Anyone with information is asked to contact ATF at 1-888-ATF-TIPS (1-888-283-8477), email ATFTips@atf.gov or submit information anonymously at ReportIt.com or the Report It mobile app, selecting “ATF – St. Paul Field Division” as the reporting agency.
SEVEN CORNERS GATEWAY DEVELOPMENT
The hotel is part of the future Seven Corners Gateway development, bordered by Kellogg Boulevard, Smith Avenue, West Seventh and Fifth Street, which includes 144 market-rate apartments that opened as scheduled last summer. Both the apartment complex and hotel are being developed by Kaeding, which is based in Bloomington and plans to retain ownership.
Retail space across the two buildings will span some 14,000 square feet. Brian Ingram, co-founder of Purpose Driven Restaurants, plans to open the Apostle Supper Club within the apartment building. “We’re still reviewing some concepts of what we’re going to do with the hotel retail space,” Nordland said.
The St. Paul City Council, meeting as the St. Paul Housing and Redevelopment Authority, sold the 2.4-acre city-owned parcel to Kaeding in August 2019 for $5 million. The projects are privately funded, and a 40,000-square-foot plaza is also planned for public and private gatherings, including game-day events at the Xcel Energy Center.
St. Paul City Council Member Rebecca Noecker called the Seven Corners Gateway project “a sign that downtown is coming back, and coming back stronger.” The project, which will replace a surface parking lot, “will be the kind of gateway our downtown deserves.”
INSURANCE PAYMENTS DELAYED
Interviewed six months after the fire, Carl Kaeding indicated that insurance payments had been delayed as companies were overwhelmed with claims following the murder of George Floyd in Minneapolis in May 2020, which touched off days of riots and arsons.
The fire completely leveled the construction site and was hot enough to melt the plastic on nearby traffic signals and damage the Xcel Energy Center sign atop the sports stadium across the street. The sign has since been repaired.
“Our commitment to downtown St. Paul never wavered, despite some unfortunate setbacks and delays with this project,” Nordland said. “We’re pleased to now resume construction so guests can begin enjoying a new Courtyard by Marriott in early 2023.”
Kaeding, which was founded in 1974, focuses on the hospitality sector and developed the Residence Inn by Marriott on Grand Avenue toward the edge of downtown St. Paul, the Radisson Hotel Duluth-Harborview and the Crowne Plaza Aire MSP Airport-Mall of America, which is being converted in part into apartments.
Source: TwinCities.com
