The Ackerberg Group, a Minneapolis-based developer, announced Wednesday that construction has commenced on a long-planned 10-story commercial building in the Uptown neighborhood of Minneapolis.

MoZaic, which will comprise 65,000 square feet of office space and 13,000 square feet of restaurant and commercial space, will be located at 1320 Lagoon Avenue-between Hennepin and Fremont Avenues, south of the Midtown Greenway, north of Lagoon Cinema, and adjacent to the Uptown Transit Station.

In addition to office and restaurant space, the planned mixed-use building will feature 436 structured parking stalls and 120 surface parking stalls. A street-level urban plaza will offer outdoor dining and public seating. The project will also add a ramp and a pedestrian/bike bridge, providing direct access to the middle of Uptown from the Midtown Greenway bike and pedestrian trails.

The $45 million project will be funded by the Ackerberg Group, MidCountry Bank, and through Recovery Zone Facility Bonds issued by the City of Minneapolis. Hennepin County's Transit Orientated Development funds will assist in the funding of the trail connection.

MoZaic is slated to be completed by January 2012. Initial plans for the project-which were proposed prior to the recession-included a hotel and condo units.

A future development phase is anticipated on the east side of the site and could accommodate 100,000 to 150,000 square feet of additional commercial, residential, or mixed-use space, according to a news release from the developer.