Community Corner

Minnehaha Creek Watershed District Seals Land Deal

Watershed district says partnership with City of Hopkins helps all parties.

The Minnehaha Creek Watershed District (MCWD) formally approved the  on Blake Road North in Hopkins last week.

“Our effort to improve Minnehaha Creek is one of the most significant environmental restoration projects being undertaken in the Twin Cities,” said MCWD Administrator Eric Evenson.  “This partnership with the City of Hopkins will help us turn back the clock on the creek’s neglect in a financially responsible way that minimizes costs to taxpayers.”

The action expands plans for , as well as future mixed-use development. The watershed district has already , most notably .

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“Our plan is to restore 1,000 feet of shoreline along Minnehaha Creek,” said Telly Mamayek, the district's spokeswoman.

The purchase will be financed by bonds and paid for by the district’s special tax levy and is part of a larger effort by the MCWD to restore Minnehaha Creek, which the watershed district says has been adversely impacted by industrial development over the years. Lease payments by the existing tenants will help cover annual financing costs, and tenants will continue regular tax payments to the city of Hopkins.

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Plans call for demolition and redevelopment to begin in about three years when the last of the five tenants, Deli Express, has its current lease expire. The area will become a natural buffer to help clean and slow run-off water before it enters the creek, provide reasonable public access and improve water quality. The rest of the property will be sold for re-development, which is consistent with the city’s comprehensive land use plan.

The cold storage site, owned by Blake Road Partners LLC, is one of  for future light rail development.

One of the toughest parts of development is assembling sufficient land for a project to take place, and the site at 325 Blake Road offers a nearly 17-acre property all under a single property owner, the Stewart Lawrence Group. The building's useful life is also nearing an end, making it worth more as new development and giving the owner a good reason to sell.

However, the current economic environment has made it difficult to find someone willing to actually buy the property for the mixed-use development that city planners want.

"The City of Hopkins and the Minnehaha Creek Watershed District have found complimentary goals—first in the opportunity to improve water quality, expand Cottageville Park and expose Minnehaha Creek to our residents and now in the ability to redevelop a key parcel in the heart of the Blake Road corridor,” said Hopkins Mayor Gene Maxwell. “This partnership will bring new life, cleaner water, improved livability and protection and enhancement of the natural environment."

The Stewart Lawrence Group originally invested in the property with the intention to up-sell it for mixed-use development. But in February, the company said it plans to expand the building, arguing that this is the only type of development that the current economy can support.

Initially, the MCWD sought an easement that would have allowed restoration of the Minnehaha Creek shoreline, but buildings and other infrastructure on the property would not have allowed enough access to the site to complete the restoration project. The MCWD determined that a purchase of the property was the best option for achieving MCWD and city goals, while being fair to property owners and responsible to taxpayers.

Prior to the board’s approval of the purchase, the MCWD obtained an independent market appraisal and conducted due diligence and negotiation to ensure that it was paying market value for the property and that there is a sufficient market interest in the eventual resale of the property for the District to recoup a large portion of its purchase costs.

The restoration project by the MCWD is one component of a larger partnership with the cities of Hopkins and St. Louis Park aimed at restoring creek watershed areas between Highway 169 and Methodist Hospital.

The Minnehaha Creek Watershed District covers approximately 181 square miles, including Minnehaha Creek, Lake Minnetonka, the Minneapolis Chain of Lakes and Minnehaha Falls. The District is charged by state law to protect, improve and manage water resources. It does so through scientific research and monitoring, public education, cost share grant programs, permitting and collaborative efforts with the 27 cities, two townships and two counties (Hennepin and Carver) that are in the District. 


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