Eagan May Seek Public Funding for Redevelopment of Lockheed Martin Site

Eagan city officials say they would like to consider the use of Tax Increment Financing to help fund improvements on the property. But first, they have to change a state law.

Pedestrian access, a multi-level parking garage, a mix of office and retail space.

Eagan city officials have a laundry list of features they would like to see Minneapolis-based CSM Corporation incorporate into the company's redevelopment of the former Lockheed Martin property.

But to get there, the city may have to chip in some public money.

Eagan Community Development Director Jon Hohenstein said the city is considering the creation of a Tax Increment Financing (TIF) District to help fund certain infrastructure improvements on the 47.4-acre site, which is situated just off Pilot Knob Road in Eagan.


When new development is constructed on a site, the market value of that property and its property taxes typically rise. TIF districts use the extra property taxes generated as a result of development—called the tax increment—to retroactively pay for certain development costs within the district.

In this case, Eagan city officials say they could use the TIF money to leverage a higher-quality development. While CSM is committed to developing the site, the company told Eagan City Council members that—without public assistance—they plan to pursue a market-driven plan.

“The Lockheed Martin site is a high-profile site; it’s high-visibility, it’s high-traffic. I think it's very important for not just that [Central Commons] Special Area in that city, but really the whole city, for that project to be done right," Eagan Mayor Mike Maguire said.


At the moment, the city does not have the authority to implement a TIF district on the CSM property because state laws dictate a TIF can only be created if:

  • Creation of the district would lead to manufacturing, research and development or warehousing jobs;
  • Or development on the current property is ruled substandard or obsolete, among other requirements.

The Lockheed Martin redevelopment project doesn't meet either of these conditions, Hohenstein said. However, city officials have asked Eagan's legislative contingent to extend the deadline of a now-expired rule that would allow a TIF district if creation of the district would stimulate construction jobs.

On March 18, District 51A Rep. Sandra Masin (DFL) authored and introduced the requested measure in the House, while District 51 Sen. Jim Carlson (DFL) followed suit in the Minnesota Senate.

Maguire said he wants to have the option of creating a TIF district on the table, but isn't sold on the idea of using a TIF district to help fund improvements to the CSM project.

"In order for me to be favorable toward a [TIF] district, I’d need to look at what it is that CSM is proposing and how is it that our participation in it can help get more of what it is the city council is looking for," Maguire said.

Click the links below to read more about the redevelopment of the Lockheed Martin property.

  • Council Preview: Lockheed Martin Site Study Returning to the Council

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mitchell Knoll March 25, 2013 at 07:11 PM
NO TIF IN EAGAN. WHY do WE need to support the developer? I'm sending Carlson a long letter for acturally thinking CMS need funding help with 8 million square ft of retail and 3100 rental unit. City is in for a fight here.
Grama March 28, 2013 at 01:57 PM
If the city is able to force a 220 unit condo building owners to be assessed a 15 year loan @5% interest to the tune of 2 million dollars for a management company to do a "beautification project" which resulted in substandard outcome and likely put a big bundle of money in the pockets of the management company then anything is possible imo. My property value went down $5000. My taxes w/o my loan went up. It is less and less affordable to own my property.
Bob the builder March 31, 2013 at 01:24 PM
Why would the city council want more office space at this site when there's no market for it? How would Eagan benefit from a parking ramp and pedestrian access? Won't CSM's plan include the best way for customers to utilize the business' that will be on the site? How can the city even consider spending money on this site w/o seeing the CSM plan? Over 1500 jobs were lost when Lockheed closed this site and we shouldn't spend money on anything that doesn't create permanent jobs (not just temporary construction jobs that will probably be filled from outside Eagan). I will certainly vote against any elected official that supports this, in the next election. Politicians should learn from what happened to the Republican politicians and the other politicians that ignored the wishes of the people, in the last election. They are looking for jobs now, like the former Lockheed employees. And none of us in Eagan need higher taxes to increase the value of CSM's investment, especially since we are already supporting the Vikings new stadium and will need even more public money since the money from electronic pull tabs was grossly overstated by politicians (either they ignored how ridiculous those estimates were just to get a bill passed, or they are very dumb - neither a case for re-electing these clowns).
Susan Owen June 05, 2013 at 05:59 PM
Grama, I’m with you! I also live in that 220 unit condo building, Coachman Oaks, and am very unhappy with the results of the $6400 I had to pay for my portion of that loan. It was, for the most part, A WASTE OF MONEY, yet we were FORCED to pay it.
Grama June 07, 2013 at 04:18 PM
Susan Owen be sure you come to the condo association meetings to voice your opinion and when we vote to replace the current board then we can also replace the take over management company motivated by profit for which we are paying. Notice that we have no voice ? And the board also backs this corruption of spending owners money. Now the city and the county have their hands in our pockets too.


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