February 12, 2014
In the first six months of operation, the new facility achieved 90% occupancy—exceeding expectations. Even more impressive is that the unique space was developed during the deep economic recession, demonstrating that a smart development, design and building partnership can yield unprecedented results.
The Radisson Blu Hotel is located at the south end of the Mall of America, the largest shopping center in the United States. The hotel fits into the zoning district established for the retail and business area of East Bloomington and is within two miles of the Minneapolis/St. Paul International Airport. The hotel is connected to the Mall of America and is adjacent to the mall's light rail transit station, as well as adjacent freeway connections. The Radisson Blu Hotel, which contains 501 guestrooms and 27,000 square feet of meeting and function space, broke ground in May 2011 with completion in March 2013. Mortenson was the Developer-Design-Builder.
Mortenson structured this $137.5 million, non-recourse financing solution that included private equity, tax increment financing, Recovery Zone bonds, pension fund investments, and a taxable and tax exempt syndication, which closed in April 2011 during one of the most challenging economic environments.
As part of the American Recovery and Reinvestment Act passed by Congress in 2009, the project was able to obtain more favorable debt financing through tax-exempt, Recovery Zone bond financing. The City of Bloomington participated in the project with tax increment financing to provide structured parking to the project and served as the conduit for the bond financing.
View our Project Profile of Radisson Blu