A sprawling new distribution center could soon rise on University of Minnesota land in Southeast Minneapolis, after city planners gave initial backing to a proposal that would bring roughly 400 jobs and round-the-clock truck traffic to the long-dormant Murphy Warehouse site. The one-story, 234,360-square-foot facility would be built at 2222 Elm St. SE, just west of the East Bank campus and separated from it by the BNSF railyard.
Indiana-based developer Scannell Properties is behind the plan, which won initial support from the Minneapolis Planning Commission, according to Finance & Commerce. The site, currently vacant, is owned by the University of Minnesota. Under the proposal, the Murphy Warehouse building on the south side of the property would be torn down, while the Wabash Screen Door Co. building on the north side would remain standing, per the same report.
What Would Operate Inside
The facility is designed for what Scannell describes as modern e-commerce, with workers fulfilling consumer goods and grocery orders for direct delivery to customers, the outlet reports. About 400 employees would staff the site across multiple shifts, and the building would run 24 hours a day. Robotics automation and powered industrial trucks would be used to store and move products inside the warehouse, which is planned with a 32-foot clearing height.
Truck traffic would be relatively modest for a facility of this size, with 10 to 12 trucks delivering product shipments each day, Finance & Commerce notes. The outlet also reports that contractors working at the site would load personal vehicles in designated delivery zones rather than driving company trucks back out at the end of the day, a detail the developer says helps reduce overall trip generation from the property.
Parking Variances And Next Steps
The plan calls for just under 250 surface parking stalls for employees, more than what the zoning code typically allows for a site this size, which is why Scannell has requested two parking variances, according to the report. A separate statute governing municipal variance standards, found in Minnesota Revisor of Statutes Section 462.357, distinguishes a variance from a use that isn't allowed under a local zoning ordinance, though the available text doesn't spell out the full approval process the city would follow here.
Scannell still needs further planning commission and other approvals before construction can begin, the report states. If those approvals come through, demolition of the south-side building is planned for March 2027, with groundbreaking targeted for May 2027. Scannell is working with Mohagen Hansen Architecture Interiors on the project design, per the same account.
A Site With A Long History
The Murphy Warehouse property sits on a 21.6-acre parcel just south of Elm Street and west of 24th Avenue Southeast, near the university's East Bank campus. Built in phases between 1902 and 1977, the property includes 38 interconnected buildings, a detail the publication reported back in 2021 when the university was seeking a buyer for the warehouse complex.
Part Of A Broader Regional Push
The Murphy Warehouse proposal fits into a wider wave of last-mile distribution projects moving through the Twin Cities area. Scannell proposed a 218,000-square-foot distribution center in Chaska as part of the Big Woods Business Park earlier this year, and the company built an Amazon fulfillment center on a 72-acre site in Lakeville back in 2020, the outlet's report notes. Ryan Cos. has also gotten in on the trend, proposing a 377,000-square-foot last-mile distribution center called Project Alpha in Eagan.
