Third North Apartments Completed
North Loop Minneapolis has come full circle. A century ago the area was bustling
with industry. Today, the exposed remains of brick streets and 19th-century
warehouses are buzzing again, this time with bike trails, Target Field, light rail, hip
bars, restaurants and exciting nightlife. Today, the revitalized neighborhood is making
a big contribution to the active, appealing urban lifestyle that’s expected to double
downtown’s residents to 70,000 over the next 10 years.
One of the North Loop’s newest landmarks is Third North, an urban contemporary
complex of eclectic studio, one- and two-bedroom luxury apartments that is
distinctively modern, yet complements the neighborhood’s historic character.
Construction of the six-story, 266,000 s.f. complex was completed in December 2013
for Minneapolis-based owner/developer Schafer Richardson, KA’s third housing
project for the client. In its first six months of leasing, the building is 90% leased,
exceeding expectations.
“Our goal was to have Third North
be a vibrant residential community
with opportunities for residents to
connect but also to have their own
high-quality private space in which
to live,” said Maureen Michalski,
senior project manager, Schafer
Richardson.
"Having Kraus-Anderson looking at the critical
details, in addition to the architecture team,
was vital in the quality installation that was
achieved.”
-Maureen Michalski
Schafer Richardson
UrbanWorks Architecture designed the project to respect the North Loop’s historic
industrial character while remaining distinctly contemporary, said Michalski. The
building abuts sidewalks on three sides, in keeping with traditional urban frontage.
And its innovative exterior of Nichiha panel cladding includes variegated shades of
greys and reds, reflecting the brick and concrete architecture of the area.
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The building’s design smoothly transitions from the neighborhood public realm, to
semi-public space with the front patios, to private space within, said Michalski. The rear
inside courtyard provides numerous outdoor amenities and green space.
Third North’s abundant lifestyle amenities include courtyard, extensive fitness facilities,
pool, bicycle maintenance room, rentable guest suite, club room, outdoor seating, fire
pit and underground parking. The pet-friendly building includes a dog grooming room
and has walk out units on the first floor for easy access to the on-site dog run, as well as
public dog park at 8th Avenue.
All units have open floor plans with Energy Star appliances and efficient lighting. Ecofriendly features include e-car charging stations, tempered parking, high efficiency
heating, cooling, and lighting.
Kraus-Anderson was involved in discussions from initial concept, back in 2008, providing
critical feedback on design concepts in terms of cost and constructability. During
preconstruction, “KA worked with us to help put pricing together for various project
concepts to help us figure out the one that made the most sense,” Michalski said.
Construction began in August 2012 and was completed in December 2013.
Together, the project team addressed some unusual project features, including the
installation of an innovative storm water management system which is the first of its
kind of this scale in the Twin Cities. The system is patterned after similar systems used in
Sweden and incorporates trees planted in various sizes of rock, combining the benefits
of both capturing storm water and providing an ideal environment for tree growth and
health.
“It was a challenge to implement, involving a variety of consultants, city staff,
Kraus-Anderson and subcontractors working together in many meetings to resolve the
details,” Michalski said.
Another challenge was installation of the building’s innovative Nichiha tile, the largest
installation of Nichiha product in the United States. “It was a new product to everyone
on the team and came with very specific requirements. Having Kraus-Anderson looking
at the critical details, in addition to the architecture team, was vital in the quality
installation that was achieved,” said Michalski.
Owner/developer: Schafer Richardson
Project director: Dave Rollins
Project managers: Drew Simon, Chris Dokken
Project superintendent: Rob Wurzl
Project assistant: Andrea Carlson
Chairman’s Column
Living in Minnesota is a constant reminder that everything moves in cycles. Seasons,
economic ups and downs and the ebb and flow of consumer demand are all constantly
on the move. It’s our job to understand change, anticipate the next move and stay
ahead of the curve.
Kraus-Anderson’s diverse business operations reflect how our teams work amid
dynamic conditions. This issue of the KA Quarterly showcases some of the innovative
projects we’ve been working on to address a range of housing trends.
Also in this issue is CityPlace, an exciting 700,000 s.f. mixed use development under way
in Woodbury that will usher in new businesses in a vibrant work-live-play environment.
Our Insurance and Capital operations are also working with highly innovative clients,
bringing personal service and creativity to help them grow their businesses.
Change is as fluent as the weather in Minnesota. But whatever tomorrow demands, KA
will help you get there.
Vice Chairman, Kraus-Anderson® Companies, Inc.
KA Capital Helps WCEC Deliver on its Mission
KA Capital recently arranged for equipment financing in conjunction with the
acquisition of the Environmental Service division of Determan Brownie Company by
West Central Environmental Consultants (WCEC).
The transaction was arranged in close collaboration with the nonprofit Meda, which
provides business development services to minority-owned businesses. Meda referred
WCEC to KA and provided the working capital loan.
“KA Capital provides quick turnaround and can service a niche that banks don’t
reach,” said Patrick Pariseau, Meda consultant. Pariseau worked closely with Marlene
Hutcheson, KA Capital leasing administration officer, on the preparations.
“Marlene and Patrick made it happen” said Prince Wallace, CEO of WCEC. “They handled
all of the details and made sure I was getting all of the right pieces of equipment. They
ran with it,” he said.
The new business unit operates under the name WCEC Industrial Services (WCEC IS).
“This addition, together with WCEC’s team of full-service environmental professionals,
enables us to handle all of our clients’ industrial waste disposal and consulting
needs in a timely and cost-effective manner,” said Cory Teff, director, Emergency and
Industrial Services. New services offered to their clients include recycling and disposal
of petroleum/water mixture, off-spec petroleum waste and products; clean outs of
flammable traps, sumps, and pits; UST and AST cleaning and removal services; fuel
transfers; and pick up and drop off waste fuels, recyclable fuels, etc.
The transaction required the careful collateral inventory and analysis of over four
dozen pieces of equipment, tools and related gear, including pickups, haulers, carry
cranes, trailers, flatbeds, tanks, vacuum trucks, centrifuge, forklift, hydro tester, portable
generator, power washers, winches, tripods, self-contained breathing apparatus (SCBA)
sets, pneumatic breathing air pump, confined space rescue Davit arm sets and waste
water treatment equipment.
From left: Patrick Pariseau, Meda; Marlene
Hutcheson, KA Capital; Prince Wallace, WCEC and
Cory Teff, WCEC; with a 1997 Freightliner vacuum
truck, part of the fleet of equipment financed in a
transaction with KA Capital.
The Marshall Mixed Use Project Completed
The times, they are a-changing in Dinkytown, USA.
Bob Dylan’s old neighborhood just north of the University of Minnesota campus today
blends bohemian coffee houses with modern student housing. And none is more
in-demand than The Marshall. The 590,000 s.f. project opened recently as the largest
off-campus housing development in the state, filling one and a half blocks with 316
apartment units and upscale amenities including high-end apartment finishes, fitness
center, indoor pool, indoor basketball court, sand volleyball court, computer lab and
underground parking for 300 vehicles. The project also includes a 28,000 s.f. retail space,
anchored by a first-of-its kind, 20,200 s.f. Target Express store.
Developed by owner/developer GEM Realty and EdR, with architectural design by BKV
Group Architects, The Marshall represents the strong collaborative effort that addressed
diverse challenges and considerations.
The project is named for the old Marshall High School, which was demolished in
late 2012 to make way for the housing project. Reclaimed boards from the school’s
gymnasium have been repurposed as architectural accents in the new complex,
nostalgic reminders of the old community in a complex designed to foster a new one.
The Marshall’s eclectic design presents a series of connected buildings ranging from
four to seven stories, with a façade that incorporates fibrous concrete, rain screen,
brick and assorted metal panels in a variety of colors. The buildings surround one
ground level and two elevated, landscaped open-air plazas. Skyways link non-adjacent
buildings, promoting social connectivity. Balconies face both the courtyards and the
street, leveraging Dinkytown’s active social scene.
Units include two-level townhomes as well as individual apartments, ranging from
one to four bedrooms with most units having a private bathroom for each bedroom.
Each unit is fully furnished and features granite countertops, stainless steel appliances,
washers and dryers.
Construction began in February 2013 and ran on schedule despite the abnormally
challenging winter weather and summer rain.
Key considerations revolved around working on a tight, one-block space within the
confines of a congested neighborhood with high pedestrian, bicycle and car traffic.
Because the outer walls of the building extend to the city property line on three sides
of the project, sidewalks had to be closed to pedestrians. Barriers were set up to create
temporary pedestrian paths around the construction site. All material deliveries and
trucking activities were prescheduled to keep the public safe.
Other unique challenges of the project included creation of the elevated plazas, which
required lifting all the dirt, landscaping and concrete onto two isolated deck areas.
In addition, the application of the exterior skin required hydraulic lifts, which in turn
created load challenges over the underground garage decks. An intensive shoring
system was set up to accommodate the equipment load.
At a much lower profile, but no less important was the storm sewer infrastructure. The
project required a 100-year design for a 380-foot storm pipe located directly under the
building site. Crews encased the 42-inch PVC pipe inside a 60-inch steel casing and
pumped in grout. One fourth of the construction trailer had to be removed to put the
pipe in.
The project was completed on schedule, in time for fall 2014 semester at the U.
Owner/developer: GEM Realty and EdR
Architect: BKV Group Architects
Construction manager: Kraus-Anderson
Project director: Dave Rollins
Project managers: John Solberg, Tom
Drewiske
Project superintendents: Al Zaffke, Dan
Olson, Tim Sandeen
Project assistant: Renae Anderson
Project accountant: Mary Amlee
100-Acre CityPlace Breaks Ground in Woodbury, MN
Construction of CityPlace is under way in Woodbury, Minnesota. Groundbreaking
ceremonies were held October 7, 2014, at the 100-acre site at the southeast corner of
Radio Drive and Interstate 94.
A joint venture of Florida-based Elion Partners and Kraus-Anderson, the CityPlace project
is reshaping a former corporate office campus into a walkable mixed-use campus with
work-play-live amenities including hotel, restaurants and shops, including a 45,000 s.f.
Whole Foods grocery which will be the first in Woodbury.
At this writing, TMI Hospitality has finalized a purchase agreement to buy a site on the
northwest part of the development for a 116-room Residence Inn hotel. In addition,
about half of the 160,000 s.f. of available retail space has been leased, with tenant
announcements pending at this writing. The 700,000 s.f. development will also feature
100,000 s.f. of new office buildings in a park-like setting with a lake, natural wildlife,
walking trails and lush landscaping. About 1,200 trees will be planted on the site.
“This will be a vibrant center and another cornerstone for economic development in
Woodbury,” said Mayor Mary Giuliani Stephens, speaking at the event.
“We are thriled to have Whole Foods Market as our grocer and enthusiastic about how
this offering will enhance the CityPlace experience for its office workers, visitors and the
Woodbury community,” said Juan DeAngulo, managing partner of Elion. “Whole Foods
Market’s healthy offerings underscore what CityPlace will be: a walkable, professional
environment showcasing an ease of lifestyle situated amid quality and convenient
amenities.”
“We’re exicted with the reception we’re getting from the business community,” said
Matt Alexander, director of real estate development at Kraus-Anderson Realty. “This
is a prime location in the entire metropolitan region, and everyone recognizes the
potential.”
Construction of the first phase of retail is scheduled for completion in 2015.
Bike Duluth Festival Highlights
Duluth’s spectacular outdoor resources were showcased at the first annual Bike Duluth
Festival on August 16-17, 2014.
Kraus-Anderson Duluth office sponsored the event, which offered something for all
ages and cycling abilities, including Enduro and Downhill races for advanced riders, free
bike demos, scenic trail hikes, guided Duluth Traverse bike rides, a kid’s bike parade,
Voyageurs Revenge XC races for riders of all abilities and ages, as well as a family-friendly
party and awards ceremony in Chester Bowl Park.
Proceeds benefit Cyclists of Gitchee Gumee Shores (COGGS) and the Duluth Legacy
Endowment Fund.
Bike Duluth Festival will return August 15-16, 2015. For more information, go to www.
bikeduluthfestival.com.
Above left: Artist’s rendering of CityPlace. Above
right: Groundbreaking officials (from left) were
Barbara Tuccitto Warren, Woodbury Area Chamber
of Commerce; Woodbury Mayor Mary Giuliani Stephens; Shlomo Khoudari and Juan DeAngulo, Elion
Partners; Matt Alexander, Kraus-Anderson Realty;
Christopher Burns, City of Woodbury; Julie Ohs,
City of Woodbury; Clint Gridley, City of Woodbury;
Dwight Picha, City of Woodbury.
KA Insurance Serves Unique Needs of American Public Media Group
In addition, APM’s creative Events and Experiences team often
suggest ideas that require an assessment of risk. Past examples
include a bring-your-canine-friend-to-a-show event; temporary
interactive outdoor sculptures and constructions that potentially
fall into the ‘attractive nuisance’ category; and occasional
member excursions involving watercraft. In each case, KA helps
the client assess the risks and costs to insure and has at times
assisted with complex insurance claims to help interpret the
insurance policy provisions and coverages applicable.
Some APM initiatives involve partnering with other organizations,
such as co-producing events with other major nonprofit partners,
travel and cruises, or distribution agreements with other content
providers.
“We include KA as part of our process in evaluating or creating
the more complex business transactions we undertake each
year,” said Roderick.
At the historic Fitzgerald Theater: Standing, Jim Klym and Jean
Sundlof, KA Insurance. Seated from left, APM’s Doug Roderick; Punit
Kapur, accountant; and Morris Goodwin, CFO. The Fitzgerald and its
activities are among the diverse components that factor into APM’s
risk management considerations.
It seems there’s always a new project in the works. “We cobranded a new seasonal beer this year with a Minnesota-based
brewery. KA helped us evaluate the potential risks associated
with that,” Roderick said.
On the other end of the spectrum is the historic Fitzgerald
Theater. Famed as the home of A Prairie Home Companion and
other MPR productions, the Fitzgerald is also rented to other
groups for productions. Built in 1910 as a vaudeville theater,
the Fitz is today on the National Registry of Historic Places, with
Insurance is probably not the first thing that comes to mind when an age and distinction that present a number of interesting
insurance considerations.
you think of American Public Media Group™ (APM).
As one of the largest producers and distributors of public radio
programming in the world, APM reaches more than 18 million
listeners on more than 900 radio stations nationwide each
week. Its programs include A Prairie Home Companion®, BBC
World Service, Marketplace®, The Splendid Table®, On Being™,
Wits™, American RadioWorks® and many others. APM’s 225,000
participants in the Public Insight Network promote deep
connections between journalists across the country and the
communities they serve. APM is also the parent organization for
Minnesota Public Radio, Southern California Public Radio and
Classical South Florida.
Still other risk factors are associated with APM’s increasing
work abroad, including with international and foreign-based
organizations such as the UK’s BBC, Canada’s CBC and Australia’s
ABC.
“We have reporters and correspondents that cover news in
Europe, China and other countries, and we have bureaus
in London and Shanghai,” Roderick said. “We provide hostsponsored trips to member and listener groups to places like
Paris, Greece and London. “We underwrite cruises that feature
the cast of A Prairie Home Companion, sailing to destinations
in Europe, the Mediterranean, and other Pacific and Atlantic
APM’s diverse activities and widespread employees are supported destinations. Each of these requires an assessment of exposures
and coverages available, where KA assists us,” Roderick said.
by a host of risk management expertise provided by KrausAnderson Insurance.
KA Insurance also assists the client with cyber privacy coverage
Since 2009, KA has provided property/casualty and workers comp relating to its operation of online ecommerce sites and its
programs that address some at times unusual risk management physical retail presence at events like the Minnesota State Fair,
Rock the Garden music festival and elsewhere.
issues. Jean Sundlof and Jim Klym are the KA producers on the
account.
“KA helps us evaluate where risks may be lurking and works with
“It’s never boring,” said Sundlof. “We’re always learning something us to help us assess and choose appropriate policy limits for our
situation,” Roderick said.
new.”
APM Controller Doug Roderick enumerated some of the
intriguing risk management challenges that are all part of a
day’s work. For example, “Our loyal listeners donate some very
interesting items from time to time,” said Roderick. “Donations
once included a small aircraft! KA helped us determine what
coverages were required while it remained in our possession prior
to its sale,” he said.
APM also works closely with Garrison Keillor and his production
company to support his A Prairie Home Companion shows, both
across the country and for international destinations.
“Our small fleet of vehicles includes a semi tractor/trailer rig that
is used to move the stage-related equipment. We source nonappearance coverage and charterer’s liability coverage for the
cruises through KA,” Roderick said.
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KA Insurance Story Continued
With such a jam-packed schedule, you don’t want to sprain a muscle. KA Insurance also
provides the client with proactive services including ergonomic and safety assessments
through its COMPTROL Zero program, provided by Loss Prevention Specialist Noble
Rainville.
“Noble has been a great resource for us as well,” Roderick said.
So the next time you turn on the radio and delight to one of APM’s stars, don’t forget to
appreciate those behind the scenes who help make it happen.
Established in 1972 and headquartered in Burnsville, Minnesota, Kraus-Anderson
Insurance provides insurance and proactive risk management services to large and
small businesses across the country, including business and personal lines, alternative
risk financing, workers compensation management (COMPTROL), HR/benefits, safety/
loss control and surety bonding.
K A Serves Varied Housing Needs
Above: Deephaven Woods Senior Living, Deephaven, MN. Below from left: 71 France, Edina, MN; Engel Haus, Albertvile, MN; One Southdale Place, Edina, MN
2014 Volume 32, No. 101
Editor, MaryAnne London; Writer, Mary Kaeding
Kraus-Anderson Quarterly is published for clients, associates and employees of Kraus-Anderson .
®
®
523 South Eighth Street, Minneapolis, Minnesota 55404 • Phone 612 332-7281
Founder, Lloyd Engelsma (1913-1997); Chairman, Bruce Engelsma; Vice Chairman, Daniel Engelsma
Kraus-Anderson Construction Company is an AA/EEO employer.
www.krausanderson.com