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

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They blame a recent snag in leaser negotiations with the and the West Side medicak practiceGCAP ( ). Both are now adversaries in a courf case in which from thehospitapl group, citing numerous contract Among those alleged violations, as outlined in June 3 letterr to Health Alliance CEO Ken was the “abandonment of the Incline Project” by the Healtuh Alliance. The 30-doctor primary-care group has committex to leasing two-thirds of a 22,000-square-foot office building that’s part of the project’ws first phase. GCAP is owned by the Health In the weeks leading up to the it refused toguarantee GCAP’s pending leasr obligations.
“The Health Allianced is only willing to give a limitedd guarantee at this saidJohn Cranley, an investor in the Inclin e Square project. “This is my language, not but what they’re offering is some form of a limitedd guarantee. We’re trying to get from them what thatlookz like. We have a financing commitmentin place, subjecrt to figuring this out.” Cranley isn’t sure what impactt GCAP’s lawsuit will have on negotiations, nor is he sure when constructiojn will begin on the project. A group of West Side investord have been pursuinga mixed-usre project on land surrounding the Queends Tower high-rise since 2005.
The latest plan involvesx $20 million in new construction, at the apex of a hill where the Price Hill Inclineonce ran. The firstr phase is expected to includethe GCAP-anchorer office building, 39 apartmengt units and a 5,000-square-foot restaurant and beer garden on the site of the old WSAI radilo station. The residential and retail components are separately financexd from theoffice building. Cranley said that coulsd permit that portion of the development to break ground this GCAP remains committed to the project and is optimisti the lease problem willbe resolved, said Mark Rudemiller, a physiciaj and board member with the group.
Rudemille said 15 GCAP doctorx are investors in the project and are willing to anchod the development with or without the support of theHealth “We can’t do it now becaus we’re still employees of the Health We can’t do it ourselves becauses we technically don’t exist at this point,” he “No bank would honor that.”