Financing for the $115 million Alatus tower wrapped up on Tuesday, clearing the way for construction to begin by Mayo Clinic's Saint Marys Hospital on the corner of Second Street Southwest between 14th and 15th avenues.

"Financing has been completed and closed as of Feb. 13. The whole project is financed," said Chris Osmundson on Wednesday. "So we'll start with re-grading the existing lot. Excavation will start in the northwest part of the site."

Osmundson is the development director for the Twin Cities developer Alatus LLC. Alatus first proposed the project in the shadow of the famous hospital back in 2016.

Progress through the city planning process hit some bumps along the way with some neighborhood opposition, but it eventually received the blessing of the city council and the Destination Medical Center Corp. The city also approved $10.5 million in tax increment financing for the project.

In August 2017, Alatus took control of The Brentwood on 2nd hotel (formerly known as the Blondell) and the Ray-Mar Motel on that corner. The old hotels were demolished in late fall.

Newsletter signup for email alerts

Since then, the project has been waiting for the finalization of the financing. It now has the green light to move forward.

The 13-story tower and attached condominiums with 350 housing units will also include 21,000-square-feet of commercial and retail space. If everything goes according to plan, the project should be completed in late 2019 or early 2020.

Osmundson expects crews from Weis Builders to start working on the site yet this week. The first steps will be to prepare the site and start excavation following by pouring concrete.

"It will take three to four months for that until people will see any structures start to go up," he said.

For people interested in the construction plans, Weis plans to host neighborhood informational meetings in the next week or two. Weis project leaders and representatives of Alatus will be available to answer questions about what to expect during the long building schedule on that very busy corner.

Osmundson has previously said commuters shouldn't be too concerned about the coming months and months of construction on that corner. The plan is to keep Second Street Southwest open throughout the work, though the sidewalk might be re-routed a bit.