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A St. Michael-based developer is pitching a plan to redevelop a Shakopee gravel pit and adjacent properties with a mix of uses that would be among the largest infill redevelopment projects in the region.
Rachel Development is proposing an approximately 140-acre master development that would include single-family homes, townhomes, multifamily uses as well as office, retail, restaurant and grocery uses. The plan would also feature a signature park with a water aspect, according to city documents. The site is located at the southwest quadrant of Mystic Lake Drive and County Road 16, at and around where Shakopee Gravel Inc.'s gravel mine operates.
Earlier this month, the Shakopee City Council approved a resolution stating the need for an environmental assessment worksheet (EAW) on the project. City documents state an EAW is needed because of the potential size of the project. EAWs help determine whether an environmental impact statement is needed for the project as part of a larger environmental review process with Minnesota Environmental Quality Board.
If the project moves forward, the site would be rezoned to a planned unit development, which typically allows a specific site to deviate from zoning standards.
The city has not yet received a formal application for the project, said Michael Kerski, Shakopee's director of planning and development. It's likely the developer will submit one this summer, after the EAW is completed this spring.
Rachel Development could not immediately be reached for comment.
If completed, the project would be one of the larger redevelopment projects in the region. It could bring in at least $300 million in investment, Kerski said.
At about 140 acres, it's also larger than the 122-acre former Ford Motor Co. site in St. Paul, Kerski said, which is being redeveloped by Ryan Cos. US Inc. into green space, office space, retail space, apartments and more under the name of Highland Bridge.
The future of the gravel site has been discussed for years. That included a proposal in 2020 by Shakopee Gravel's site owners, which were running out of gravel to mine, to build 380 homes and three industrial buildings at the site, according to a Southwest News Media report. But that plan did not come to fruition. Shakopee Gravel could not immediately be reached for comment.
Last year, the Minnesota Legislature approved the city's request to allow tax-increment financing (TIF) on the site, which normally wouldn't be allowed on gravel pits, Kerski said. This means the developer would now be able to utilize TIF, if the city approved it.
