Eden Prairie industrial redevelopment gains momentum with key tenant secured

A developer’s plan to knock down three Eden Prairie buildings that once housed American Family Insurance regional offices and put up an industrial building is back for city review.

Endeavor Development has slightly changed its original plan for industrial uses to better meet market needs, winning the Eden Prairie Planning Commission’s endorsement on Monday. City Council review is next.

Why it matters: The plan change increases the likelihood that the site, visible from Crosstown Highway 62 and on the market for some time, will return to full use and generate more property tax revenue for local governments.

Last July, the City Council approved Endeavor Development plans for a single industrial building of nearly 186,000 square feet where the office buildings have stood since 1977, on a slice of Minnetonka’s Opus Business Park that is along Crosstown Highway 62 and actually within Eden Prairie’s city boundaries. No end user had been secured.

The developer is now proposing two smaller buildings totaling 174,230 square feet, one of which has an identified tenant. The buildings are one level with an optional mezzanine, but their high ceilings and exterior design make them appear two stories tall.

HM Cragg would occupy the larger, 92,000-square-foot building. No user has yet been identified for the smaller building, Endeavor Development partner Joe Bergman told the commission. 

HM Cragg is a 57-year-old employee-owned company that provides backup power solutions. Formerly located in Eden Prairie, it moved to Edina and is now looking to return to Eden Prairie. According to its website, the company has distribution centers in Nevada, Virginia, Texas, and Minnesota.

The new site plan is similar to the one the city approved last year in terms of architecture, building materials, building access and orientation, and the location of parking and loading docks.

HM Cragg needs secure parking, so Endeavor Development has proposed a parking area enclosed by a black chain-link fence with tan screening fabric. City staff said it doesn’t meet city code and that a higher-quality fence is required.

“I’m confident we’ll get that resolved before it goes to the City Council for review,” City Planner Jeremy Barnhart told the commission on Monday.