Hot Property: Former quarry in Shakopee will become site of luxury apartments
Address: 339 1st Av. W., Shakopee
Developer: Gaughan Cos.
Architects: Momentum Design Group, HA Architects
Details: The long-sought redevelopment of a city-owned site along the Minnesota River in downtown Shakopee is underway with an agreement on a plan for 125 market-rate apartment units.
Forest Lake-based Gaughan Cos. responded last year to the citys request-for-proposals for its Riverfront Bluff property, located on about 1.5 acres along Levee Drive. The site overlooking the river was once a quarry and subsequently used as a landfill. The adjacent areas along 1st Avenue West also have environmental issues stemming from a former oil depot and dry-cleaning business.
Gaughans pitch for the riverfront included 125 market-rate luxury apartment units, along with underground parking and 3,500 square feet of commercial space to be used for a restaurant. But to make it financially feasible, the developer requested $2.8 million in tax-increment financing to pay for soil remediation, demolition, utility relocations, bedrock removal and public improvements.
The citys Economic Development Authority in July approved the creation of a new TIF district covering the property as well as a development agreement with Gaughan for the apartment project.
City officials said the effort will begin this year with the demolition of an existing building on the site. New construction is set to start next spring.