Laux and Benson plan to restore the historic Ivy Tower and build a 136-room, 17-story boutique hotel and 88 housing units, including 18 affordable units, on the block, which is located at the corner of S. 11th Street and Second Avenue. The project will also consist of about 21,000 sf of retail, including a health club, 156 underground parking spaces and skyway connections.

The Minneapolis city council recently authorized city officials to buy the property through condemnation, if necessary, to allow the Ivy Tower redevelopment project to proceed. "The city was willing to use eminent domain powers in this case to achieve several public purposes: the preservation of an historic structure, Ivy Tower; the elimination of blight and blighting influences of surface parking, and the creation of housing, including affordable housing, for Minneapolis residents," says George Kissinger, project coordinator with the city's department of community planning and economic development.

The city obtained an appraisal of the property, which put its value at nearly $1.3 million. The price was not disclosed, but it is believed to be close to that appraisal.