A week of firsts at the former Hillcrest Golf Course site in St. Paul

It's been a week of firsts at the Heights, the former Hillcrest Golf Course in St. Paul's northwest corner that is planned to become a $550 million development blending new housing and more than 1,000 jobs.

The first first: Xcel Energy last Friday announced it has signed a purchase agreement for 20 acres for a new St. Paul service center, including a new training center. The facility will replace Xcel's Rice Street Service Center and be about twice its size.

"We are strongly committed to the St. Paul community and excited to be the first business and anchor tenant announced for the Heights," said John Marshall, regional vice president of Xcel Energy.

The mixed-use development will include a city park in addition to 1,000 housing units and 1,000 new jobs.

The Rice Street Service Center has about 375 employees. Its replacement will include a training center that will "create a jobs pipeline for skilled labor," Xcel said in a statement.

The service center will be built using energy-efficient construction and include space for charging stations to support the Xcel's plans to transition its fleet to electric vehicles by 2030, officials said.

Demolition and preparation of the site is set to begin in June. Construction is expected to start in spring 2024.

The second first: the selection of Sherman Associates as the project's lead housing developer. Port Authority and city officials said this week that Sherman plans to include housing for all ages and incomes, including workforce market-rate, affordable and deeply affordable.

"The vision we're leading at the Heights embodies our shared commitment to long-term sustainability and high-quality affordable housing," St. Paul Mayor Melvin Carter said in a statement.

"We are excited to bring this development to fruition with our partners and provide more family housing options in our growing city."

Sherman will partner with JO Cos. and Twin Cities Habitat for Humanity to complete the planned 1,000-plus housing units — with Sherman building approximately 700 multifamily units. JO Cos. will develop a multifamily building of up to 230 units and Habitat for Humanity will build from 130 to 150 affordable townhome units, the Port Authority said.

Besides its housing and jobs goals, officials said, the project will include a 5-acre park, trails, wetlands, stormwater features, neighborhood gathering spaces, public art and other greenspace.

Officials say they expect most of the redevelopment of the 112-acre site, second in size only to the former Ford Motor Co. site — now called Highland Bridge — to be complete in 2029.