Search
 

Medica Scraps Plans For 320,000-SF HQ

MINNETONKA, MN-The group health plan blames cancellation of the $77-million project on cost-cutting following a break up with the Allina Hospital chain. Medica will continue to occupy the Gateway North building here.

By Jim McCartney | Updated on November 14, 2001

MINNETONKA, MN-Medica officials say the group health organization recently canceled construction of a new headquarters complex in Hopkins estimated at $77 million. The cancellation is related to the recent breakup of Medica and Allina Hospitals, and subsequent cost-cutting of corporate overhead expenses, according to Larry Bussey, director of Medica’s communications.

The breakup came shortly after a lengthy audit of the company by Minnesota AttorneyGeneral Michael Hatch, who suggested a breakup. The company says it had already been looking at splitting up the two concerns prior to Hatch’s suggestion.

The company had signed a purchase agreement with Supervalu Inc., the food wholesaler and retailer based in Eden Prairie, MN, to buy a 31-acre site for a 320,000-sf, five-story office building, Bussey says. The deal had also included demolishing a 624,000-sf distribution center that Supervalu no longer uses, he adds.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.