Address: 339 1st Av. W., Shakopee
Type: Multifamily
Developer: Gaughan Cos.
Architects: Momentum Design Group, HA Architects
Details: The long-sought redevelopment of a city-owned site along the Minnesota River in downtown Shakopee is underway with an agreement on a plan for 125 market-rate apartment units.
Forest Lake-based Gaughan Cos. responded last year to the city's request-for-proposals for its "Riverfront Bluff" property, located on about 1.5 acres along Levee Drive. The site overlooking the river was once a quarry and subsequently used as a landfill. The adjacent areas along 1st Avenue West also have environmental issues stemming from a former oil depot and dry-cleaning business.
Gaughan's pitch for the riverfront included 125 market-rate luxury apartment units, along with underground parking and 3,500 square feet of commercial space to be used for a restaurant. But to make it financially feasible, the developer requested $2.8 million in tax-increment financing to pay for soil remediation, demolition, utility relocations, bedrock removal and public improvements.
The city's Economic Development Authority in July approved the creation of a new TIF district covering the property as well as a development agreement with Gaughan for the apartment project.
