Redevelopment plan to bring 124 apartments to downtown Rosemount – St. Paul Pioneer Press

Construction is set to begin this spring on an apartment building in downtown Rosemount that city officials say will drive more commercial growth in the area.

Ron Clark Construction and Design was given approval this month to redevelop Shenanigans Pub and the nearby Rosemount Plaza Shopping Center along Highway 3 into market-rate apartments. A second phase of the project will add about 4,000-square feet of retail space on the northeast part of the nearly three-acre site.

The project will cost between $25 million and $28 million to build and have an estimated taxable market of around $21 million, said Kim Lindquist, community development director.

The city has been told we need more rooftops to continue attracting commercial downtown, Lindquist said this week. The apartments bring more residents downtown and increases activity and vibrancy. This will benefit existing businesses and entice new businesses into our downtown.

The L-shaped, four-story apartment building will be among several new housing projects in downtown constructed in recent years, following the creation of a redevelopment plan. Others include Waterford Commons, Cambrian Commons senior housing, and the Steeple Center and adjoining senior living apartments.

To make the latest project work, the city council approved a $3.4 million tax-increment financing plan for the developer that will stretch over 25 years. With TIF, the developer will pay the incremental difference in taxes paid between the old site development and the new one.

A rendering of the four-story, 124-unit apartment project approved for Highway 3 in downtown Rosemount. (Courtesy of City of Rosemount)

A rendering of the four-story, 124-unit apartment project approved for Highway 3 in downtown Rosemount. (Courtesy of City of Rosemount)

A rendering of the four-story, 124-unit apartment project approved for Highway 3 in downtown Rosemount. (Courtesy of City of Rosemount)

A rendering of the four-story, 124-unit apartment project approved for Highway 3 in downtown Rosemount. (Courtesy of City of Rosemount)

They will use money for land write-down, demolition and utility improvements as redevelopment is more costly than greenfield development, Lindquist said.

The developer is required to have the retail project built by 2025.

Most of the project site was developed as a shopping center in 1962, which gave the community a retail boost and was robust for the next three decades or so. But as the retail landscape changed toward mega-malls and big-box retailers, small local shopping malls like Rosemount Plaza suffered.

Moreover, the center has seen minimal economic investment in recent years, leaving it in rough shape and making it difficult nearly impossible to bring it up to modern construction standards, according to Lindquist. Nowadays, the center includes Medic-Car Auto Repair, Chill Salon, The Guitar Shop and Divas & Denim Boutique.

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Redevelopment plan to bring 124 apartments to downtown Rosemount - St. Paul Pioneer Press