WEDNESDAY, MAY 20, 2009

Court ruling stalls downtown redevelopment in Eagan, Minn.

by Mike Moran
Minnesota

Eagan, Minn.'s new walkable downtown hit a roadblock when the Minnesota Court of Appeals reversed a district court decision allowing the Eagan Economic Development Authority to seize multiple businesses through eminent domain.

Three of the businesses - Larson Automotive Repair Services, Competition Engines Inc. and the U-Haul Company of Minnesota - located in the Cedar Grove Redevelopment Area southeast of Cedar Avenue and Minnesota Highway 13 filed the appeal.

The appellate court found that the Economic Development Authority, without a binding development agreement in place, was found to have overstepped its bounds by attempting to seize the three properties.

The first phase of the project will not be affected by the decision, though future phases could be impacted. The first phase will consist of a 250-unit apartment project, a 160-unit hotel complex and a 150-unit senior housing development on 20 acres of land. A 13,000-square-foot retail area will also be built.

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