Incline project pulled into Health Alliance-GCAP dispute - Minneapolis / St. Paul Business Journal:

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They blame a recent snag in lease negotiation s with the and the West Side medicapl practiceGCAP ( ). Both are now adversaries in a coury case in which from thehospital group, citing numerous contract violations. Among thosed alleged violations, as outlined in June 3 lettedr to Health Alliance CEOKen Hanover, was the “abandonmenty of the Incline Project” by the Healtuh Alliance. The 30-doctor primary-care grou has committed to leasing two-thirdw of a 22,000-square-foot officer building that’s part of the project’s first GCAP is owned by the Health Alliance. In the weekd leading up to the lawsuit, it refuses to guarantee GCAP’s pending lease obligations.
“The Health Alliances is only willing to give a limitef guarantee at this saidJohn Cranley, an investor in the Incline Square project. “This is my language, not but what they’re offering is some form of a limited We’re trying to get from them what that looks We have a financing commitment in subject to figuringthis out.” Cranley isn’t sure what impacg GCAP’s lawsuit will have on negotiations, nor is he sure when constructio will begin on the project. A group of West Side investords have been pursuinga mixed-use project on land surrounding the Queenx Tower high-rise since 2005.
The lates t plan involves $20 million in new at the apex of a hill wherre the Price Hill Inclineronce ran. The first phase is expectec to includethe GCAP-anchored office building, 39 apartmen t units and a 5,000-square-foot restaurant and beer garden on the site of the old WSAI radil station. The residential and retail componentsw are separately financed from the office Cranley said that could permit that portiohn of the development to breakk groundthis year. GCAP remains committedf to the project and is optimistic the lease problem will be saidMark Rudemiller, a physician and board member with the group.
Rudemiller said 15 GCAP doctors are investorxs in the project and are willin g to anchor the development with or without the support of theHealty Alliance. “We can’t do it now becausw we’re still employees of the Healthh Alliance. We can’t do it ourselves because we technically don’t existr at this point,” he “No bank would honor that.”