Nicollet Mall redesign expected to spur more than $100 million in additional spending, create nearly 1,000 jobs
A new independent economic impact study of the Nicollet Mall project found the reconstruction is expected to create $105.5 million in additional spending in Minnesota and 860 full-time equivalent jobs. The study was conducted earlier this year by Donjek and Anton Economics.
Downtown Minneapolis is currently home to more than 130,000 jobs, and Nicollet Mall contains the densest concentration of jobs and market values in the state, according to the study. Originally constructed in 1968, Nicollet Mall was created to strengthen the appeal both for retail and downtown investment.
The study also outlined the following economic benefits of a Nicollet Mall reconstruction:
- Expanding Visitorship: In 2010, business and visitor activity in the Nicollet Mall area generated $13.8 million in city sales tax receipts. Nicollet Mall reconstruction will strengthen the region’s attractiveness for convention business, which will translate to increased visitors, elevated spending levels and additional collections of Minnesota’s sales tax as well as local food, liquor and hotel sales taxes over time.
- Stimulating Development: A new Nicollet Mall will be a prominent destination that reinforces and stimulates private redevelopment.
- Extending Market Certainty About Downtown: Development projects anticipated to move forward in the coming 24 to 36 months, sited on blocks facing Nicollet Mall, represent an estimate $185 million plus another $168 million of development within a one-block radius of Nicollet Mall. The office space created will house nearly 2,000 permanent full-time jobs.
- Compounding market value and property tax capacity: Residential and office growth near Nicollet Mall provides long-term tax capacity for state and local property tax levies. Tax base created by the development trends and the appreciation attributable to the reconstruction projects will generate significant additional annual property tax revenues.
New York-based James Corner Field Operations, which has been involved in a multitude of high-profile projects including Chicago’s Navy Pier, Seattle’s Waterfront and the High Line in New York City, was chosen to redesign Nicollet Mall. The firm will unveil its final design recommendation this spring.
To see the full report, visit www.nicolletmallproject.com.
Published Mar 19, 2014