Wells Fargo South Minneapolis campus applies for historic designation

Wells Fargo has applied for national historic designation for its South Minneapolis Home Mortgage campus, which is being mothballed as the bank consolidates its Twin Cities corporate office footprint.

Why it matters: If approved by state officials, the designation would make the property more attractive to developers because it would qualify for significant state and federal tax credits.

State of play: Wells Fargo announced in April 2023 it would close the campus and has been marketing it for sale while employees relocate to other local offices.

• While it could be re-used as an office campus, the demand for housing is much greater.

How it works: The state matches a 20% federal tax credit on projects that preserve and renovate old buildings.

• While the cost of converting the campus to apartments is unknown, if a developer hypothetically spent $100 million on construction, it could qualify for $20 million in federal tax credits plus $20 million in state tax credits .

The big picture: High interest rates and construction costs have severely slowed construction of multifamily housing.

• A subsidy of that size could speed up the sale — and transformation — of the Phillips neighborhood landmark, which drivers can see from Interstate 35W.
• Wells Fargo did not make anyone available for an interview, but confirmed the application for historic designation was intended to make the buildings more marketable.

Catch up quick: Previously the headquarters for Honeywell, portions of the campus date back to 1912, according to property records.