Developer Proposes Four-Story Apartment Complex, Shops in Cedar Grove

The dust has barely settled on the groundbreaking for the new Paragon outlet mall, and already Eagan city officials are weighing a significant proposal from another developer.

On Tuesday, the Eagan Economic Development Authority voted to enter into negotiations to sell a 4.8-acre parcel near the outlet mall site to Stonebridge Companies, a Twin Cities-based developer specializing in multi-family housing complexes.

Stonebridge wants to build a four-story, 180-unit apartment complex just east of Jensen's Supper Club and Cedarvale Lanes, at the corner of Cedar Grove Boulevard and Cedar Grove Parkway. Preliminary plans for the apartment complex also include 12,000 to 14,000 square feet of retail space.

The proposed site of the apartment complex is currently owned by the Eagan EDA, and a tentative sale price of $1.8 million has been set for the land. As part of the sale negotiations, however, an appraiser will likely evaluate the site to gather information about market values. The asking price for the site could be revised as part of that process.

Stonebridge Companies hopes to close the deal with the city by early October to fast-track construction on the site. The proposed complex would have underground parking, and studio or one- and two-bedroom apartments. The likely rental price for a unit would range from $900 for a studio to $2,200 per month for a two-bedroom, according to information submitted by the developer.

The complex would also include a club/game room, exercise room, business center, resident lounge and pool. Commercial storefronts, which would be located on the west side of the building, could house a restaurant, micro-brewery, coffee/wine bar, apparel shops or other specialty retailers, according to the developer.

Stonebridge, formed in 2002, has built a handful of similar apartment complexes in Apple Valley, Rosemount and St. Paul, among other cities.

The Eagan EDA, composed of members of the Eagan City Council, seemed pleased with Stonebridge's proposal on Tuesday night.

"This fits in very nicely with what’s emerging down there," Mayor Mike Maguire said at the meeting. "I think the mix of uses is really excellent and it really is reflective, I think, of some of the earliest iterations of our conversations for the vision of Cedar Grove."

The council approved a preliminary concept plan for the site and directed the preparation of a real estate agreement with Stonebridge on Tuesday. The next action could occur on July 2, when Eagan City Council will likely hold a public hearing to discuss the proposal.

Wally Johnson, a representative of Stonebridge Companies, told the EDA on Tuesday that the high profile nature of the site and the traffic the soon-to-be-built outlet mall will bring were enticing for the company.

The EDA also cautioned Johnson to produce a quality project, given the importance and visibility of the site.

"We understand fully the importance of this corner," Johnson said. “We're going to spend the time and material, and as we’re going to be owners of this property, it’s goin to be a sharp looking building when we’re done."