Market Study Says Eagan Retail Has Room To Grow

Eagan’s central commercial district can support as much as 940,000 square feet of additional commercial retail space—if the city pursues smart development over the next nine years.

That is one of the principal findings of the Central Commons Market Study, commissioned by the Eagan City Council in September and completed by real estate research firm Maxfield Research Inc.

The completion of the study is the latest development in a months-long discussion over the fate of the 47-acre Lockheed Martin property, located off the intersection of Yankee Doodle Road and Pilot Knob Road in Eagan.

In 2010, as part of a move to consolidate its operations. The property was purchased by CSM Equities LLC, which has plans to develop a 41-acre retail center on the site and use the remaining six acres for an office complex. Their plans caught the attention of the Eagan City Council, which requested the study and an environmental assessment of the site earlier this year, according to Community Development Director Jon Hohenstein.

Chief among the council’s concerns? Making sure the city has the capacity for additional retail development, according to Mayor Mike Maguire.

“It’s an important parcel in the city of Eagan, and traditionally it’s been an office or business park or research-oriented development. Because of that, the decision to turn it into retail is a change in historical use,” Maguire said. “One of the concerns is that if you’re making that kind of change, are you hurting the investment that others have made in the area?”

To answer that question, the research firm analyzed the projected growth for Eagan’s Central Commons area, changing demographic patterns in the city and the market conditions for retail.

The report found that recruiting a mix of retailers that are not already present in the local area would allow the city to add retailers without harming the business of companies already present in Eagan. The city lacks adequate clothing, furniture, sporting goods and jewelry store—among other specialized retailers, the report found.

Adding those specialized stores to the city’s commercial base, the report concluded, could help the city draw in customers from a larger area—allowing Eagan to strengthen its position as a regional commercial destination.

The study indicates that the development of additional retail space at the Lockheed Martin site is viable—but Maguire isn’t completely sold on the idea yet.

Before the project moves forward the Metropolitan Council must complete a review of a proposed amendment to the city’s comprehensive guide that would facilitate the rezoning of the property for retail space. Once that process is done—and an environmental assessment of the site completed—the council will consider approving the changes.

CSM already owns the property and is currently leasing it to Lockheed Martin, who will occupy the site through March 31, 2013. CSM wants to begin development of the project in April, 2013, with a projected opening of spring 2014.

Although the city contracted for the study and managed it to maintain a third-party perspective, the cost of the study—approximately $15,000—will be borne by the developer, according to Hohenstein.

Clarification: The article above has been changed to clarify a point in the story. Although the cost of the market study will be carried by the developer, the city contracted for the market study and managed it to maintain a third-party perspective.