Vikings back away from land purchase near Metrodome
(AP) - The Minnesota Vikings have backed out of a deal to buy four blocks near the Metrodome from the owners of the Star Tribune, the newspaper and the team confirmed Wednesday.
The land was part of owner Zygi Wilf's plan to redevelop the surrounding neighborhood with a new football stadium and other amenities, but the parcels were not part of the actual stadium site.
Though the Vikings have put their legislative push for the stadium on hold in light of the Interstate 35W bridge collapse and fatal floods earlier this month, losing the Star Tribune land does not affect the stadium part of the project.
In an e-mail to employees, Publisher Par Ridder said the Vikings had advised the company that the team no longer intends to buy the land from owner Avista Capital Partners.
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"While we had reached agreement on a deal in principle, the Vikings reevaluated their plans in light of the recent credit market turbulence and other factors," Ridder wrote.
Vikings vice president of public affairs and stadium development Lester Bagley declined to elaborate on the decision. Bagley insisted the backout was an isolated business decision and not based on a broader concern about the viability of a new stadium.
Wilf has proposed a $954 million facility to replace the Metrodome as the centerpiece of an ambitious redevelopment of the surrounding area on the east edge of downtown Minneapolis.
This is the normal course of business. This is a real estate transaction. It's happening throughout the country in other projects. If it doesn't stack up, opt out."
"We are committed to advancing a Minneapolis stadium solution and investing in a broader economic development plan that would be a benefit to the entire state of Minnesota," Bagley said. "The news today is we've opted out of the deal after doing our due diligence. This is the normal course of business. This is a real estate transaction. It's happening throughout the country in other projects.
"If it doesn't stack up, opt out."
Wilf, a real estate developer, has pledged about $250 million for the new stadium and millions more for redeveloping the surrounding area. The Star Tribune land - which the team initially intended to buy for $45 million after an agreement reached in June - is part of that area.
Bagley said, however, that Wilf still owns other downtown parcels and is still pursuing other plans to purchase more land - including a city-owned parking ramp next to the light rail station at the Metrodome.
The Vikings have a three-pronged plan for the area, including private mixed-use development and an enclosed "winter garden" with entertainment and retail at the rail station.
The third piece is the stadium with some public financing. That project has been shelved for now after the bridge collapse and flooding in southeast Minnesota.
"It's entirely appropriate for the Legislature to get together in a special session and address those issues. At the same time, it's not appropriate to advocate a stadium at the time being. We'll get back to that another day," Bagley said.
The Vikings have long been pushing for state support for the project. They hoped for legislative approval next year, and said previously that waiting until 2009 could push the stadium cost to nearly $1 billion.
In his e-mail, Ridder said the Star Tribune and Avista would continue working with their real estate advisers over the next few weeks to determine their next steps.
Ridder said the Star Tribune would press ahead with plans to close an office building that was to be part of the sale and move the affected employees into the newspaper's main building.
The Vikings recently sent a letter to their season ticket holders highlighting the revival of pregame tailgating around the stadium, starting with the regular-season home opener Sept. 9 against the Atlanta Falcons. The four lots the team will no longer purchase are still open for tailgating in 2007 because they'll be managed by a third party on game days, Bagley said.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
