BLOOMINGTON, MINN. — A $137.5 million construction loan has been secured for a new hotel at the Mall of America in Bloomington. Minneapolis-based hospitality company Carlson Hotels will partner with the Minneapolis office of construction giant Mortenson to construct the 500-room Radisson Blu Hotel on the mall's south side.
The project's complicated financing package, which was arranged by Dougherty Funding, consists of public and private sources. The City of Bloomington is providing general obligation bonds. Other bond financing includes those from the Recovery Zone Facility, tax-exempt private activity bonds created by the 2009 American Recovery and Reinvestment Act. Mortgage secured notes are being provided by trade pension funds and community banks. Other financing sources include a Mall of America skywalk contribution and developer equity.
Now that construction financing has been secured, the project will break ground on May 26. The hotel will be located between Macy's and Bloomingdale's, and it will connect to the mall via skyway. Mortenson is serving as developer and general contractor. Carlson Hotels will manage the property upon its completion, which is expected in March 2013.
“We are excited about this landmark Radisson Blu development, which is another key milestone for our Ambition 2015 growth plan to make Radisson a powerful, globally consistent, first-class brand,” said Thorsten Kieschke, COO of Carlson Hotels and president of Carlson Hotels, Americas. in a statement. “It is our second Radisson Blue announced in the United States and is an important next step for the Phase II, high-end expansion at Mall of America.”
— Coleman Wood