Graco leaving Minneapolis, opening riverfront site for potential development
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Graco is closing its Northeast Minneapolis campus and moving hundreds of employees to the northwest metro, setting the stage for one of the Twin Cities' best redevelopment opportunities in years.
Why it matters: This is 40 acres of prime Mississippi Riverfront land in what was already a hot area for development.
- But the decision also underscores an ongoing transition for the city as it moves away from manufacturing.
By the numbers: Graco, which makes fluid and materials handling equipment, says it has 400 employees in Minneapolis.
What they're saying: "People talk about that Highland (Bridge) housing development in St. Paul at the old Ford site. This will make that look like the minor leagues," said Council Member Michael Rainville, who represents the area.
- Of note: Highland Bridge is about 122 acres, though St. Paul limited building heights and density.
Driving the news: Graco announced today it will exit the campus over the next two years and build a new headquarters in either Rogers or Dayton.
- The company has been at that site since the 1940s, but as Rainville pointed out, the writing has been on the wall for years as it's shifted operations to the northwest metro.
What we're watching: How much cleanup is needed to prepare the site for sale and how much interest there is in the land from developers. Rainville said developers have approached Graco over the years wanting to buy the campus, while nearby Marshall Street boomed with new apartments.
Yes, but: Housing construction has slowed dramatically in Minneapolis following interest rate hikes, rising construction costs and some overbuilding, particularly in downtown Minneapolis.
Between the lines: A new Graco Park just opened on the south end of the site after a deal between the company and the Minneapolis Park Board. That should make the land even more attractive.
- Rainville said he wants the massive transmission lines that cross the property to be buried as part of a potential redevelopment.
Editor's note: This story has been updated with information from Graco on the size of the site and the number of its employees in Minneapolis.