Eden Prairie Center’s north end: Mixed-use concept unveiled

A sweeping redevelopment plan, currently in its early stages, promises to reshape Eden Prairie Center’s north end. The ambitious proposal envisions a transformation of the vacant JCPenney site and surrounding parking lot into a vibrant mix of apartments, retail, offices, and a hotel.

The concept was shared with Eden Prairie City Council members March 18 in an informal workshop. The meeting served as an annual update on parcels around the city that are candidates for development or redevelopment.

The Eden Prairie Center concept plan stems from months of discussions between city staff and mall owner MetLife Insurance.

“I would say it is in the very preliminary stages,” said Julie Klima, the city’s community development director. “They have more work to do to understand all of the costs and partners they would need to work with. It’s all high-level concept at this point.”

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If the preliminary plan turns into a formal application for city review and approval, it may include a request for tax-increment financing (TIF) on the city’s part.

Under state law, cities are allowed to use TIF to capture the increased taxes that come from a redeveloped property and use those tax “increments” to pay for at least some of the improvements. After the TIF district expires, often 20 years, all of the tax revenue begins flowing to local governments for general-fund use.

The city used TIF to redevelop the mall in 1996 as part of a broad plan that resulted in a new entertainment wing with theater screens and restaurants, and a new Von Maur department store.

That project was considered a success, as it raised the taxable value of the mall and its anchor stores from $23 million to $132 million, a $109 million increase far outpacing the $71 million hike that was predicted at the project’s start. The city’s commitment to that project was $13 million, according to city staff.

But the taxable value of the shopping mall – and the property taxes it generates – has declined in recent years. For taxes payable in 2025, the mall and its anchor stores are valued at about $88.5 million. The 1.4 million-square-foot mall, situated on 87 acres, currently has more than 100 stores.

Project could help achieve city goals

It’s uncertain whether a new TIF district to help finance redevelopment of the mall’s north end would have the same success as the 1996 effort, given the headwinds that traditional malls are now facing. Experts say the trend is toward malls with mixed-use development and experiential shopping rather than just a conglomeration of retail storefronts.

City staff said the MetLife concept discussed with the council this week aligns with several goals in the city’s Aspire Eden Prairie 2040 plan, including affordable housing. The concept includes about 750 apartment units, with a portion expected to have affordable rents as required by the city’s Inclusionary Housing Policy. The policy mandates that 5% to 15% of the units be affordable to lower-income residents, with the exact percentage based on rent levels.

For decades, the city has also wished for a hotel large enough to accommodate community gatherings. City staff said no specific hotel company has yet been identified about MetLife’s concept. The rough plan includes underground parking.

Mayor Ron Case suggested that discussions with MetLife include the possibility of installing solar panels on the project’s significant roof space. Establishing a community solar garden, like the one atop the Eden Prairie Community Center, would help the city advance its 2050 sustainability and climate action goals.

The redevelopment concept also calls for some office use and freestanding retail as well as retail on the ground floor of apartment buildings, according to Klima. It is expected that the development, in taking down the JCPenney building and perhaps a portion of the mall proper, would reduce the mall’s current square footage overall.

The city’s Aspire Eden Prairie 2040 plan suggests that mixed-use development of this type can help counter the challenges facing retail shopping malls.

“Redevelopment there gives us an opportunity to take a harder look at those new and emerging priorities,” said Klima. “The specifics of walkability, mix of uses – all of that – will be fleshed out in the development review process. But the mix of uses that the city is working to achieve on that site is certainly represented in that concept.”

The mall’s north end is less than a block from the northwest edge of Anderson Lakes Regional Park and about three blocks from the Town Center Station, which was built in anticipation of the Green Line LRT Extension. However, the concept plan does not currently incorporate connections to either.

Discussions with MetLife are ongoing, according to city staff, with the possibility of formal plans submitted for city review later this year.

In the meantime, the city is asking the Minnesota Legislature to amend state law by removing “blight” as a precondition to establishing a TIF district. Other TIF-law changes are also being considered by legislators this session.

Five other properties worth watching

Eden Prairie Center is one of several potential development or redevelopment sites highlighted by city staff during a March 18 workshop with council members. Here are five other properties to watch, none of which has filed a formal application for city approval:

• Danfoss – This 60-acre, multi-building campus along Highway 212 is on the market following the Danish company’s announcement that it will close the plant by the end of 2025. Klima said the city is encouraging redevelopment into a multi-use site, including destination entertainment, convenience retail, and multifamily residential. However, the city has also received inquiries about continuing industrial use of the main plant. Additionally, the city has expressed interest in purchasing one of the outbuildings for Public Works Department fleet storage. The city’s existing public works and maintenance facility is adjacent to the Danfoss property.
• Former UNFI parcel – Left over from the Eden Prairie Schools’ purchase of the former UNFI building along Valley View Road is a developable parcel at the corner of Valley View and I-494, currently eyed for a hotel and commercial building.
• Eden Bluff Corporate Center – This 153,000-square-foot, single-story office building, part of the C.H. Robinson Worldwide campus south of Flying Cloud Airport, has a new owner interested in repurposing it for residential use.
• Across Flying Cloud Drive from Hennepin Technical Center – According to Klima, there are several parcels here that can be aggregated to form a four-acre development site. City staff have received concept plans to build multi-family housing for neurodivergent residents.
• 11010 Prairie Lakes Drive – This property east of Eden Prairie Center holds two office buildings built in 1998. City staff has been approached with a concept that would save one building but construct medium- or high-density housing in place of the second building.