Johnson Brothers withdraws application to redevelop Blue Cross Blue Shield site in Eagan

Johnson Brothers Liquor Co., among the largest wine distributors in the United States, this week withdrew city documents necessary to redevelop a 55-acre site in Eagan formerly occupied by Blue Cross Blue Shield.

“We have determined that the Blue Cross Blue Shield site in Eagan is not the best fit to meet the anticipated future needs of our company. We will continue to explore other options around the metro, including the possibility of remaining in St. Paul,” company officials said in a statement.

Johnson Brothers had requested a comprehensive plan amendment to change its land use designation from major office to industrial. The company had planned for the site to serve as its corporate headquarters and proposed building a 550,000 square-foot warehouse there, adding a new parking lot and repurposing a building on the south end as a training center for employees. Soccer fields on the property were to be relocated.

The Eagan City Council approved sending the comprehensive plan amendment on to the Metropolitan Council for review, despite more than two dozen people voicing concerns about the redevelopment, including worries about traffic, air and noise pollution, and declining property values.

“I am totally against changing the character and beauty of a green and open area to the detriment of many and the benefit of one family business,” wrote Barbara Slagg in an email to the city.

Resident Elle Jenkins said that the property “is surrounded by higher-than-average residential areas that may lose homeowners” and see reduced interest from buyers if it were rezoned as industrial.

In response to the application withdrawal, Eagan Mayor Mike Maguire said the “path for redevelopment on large-scale properties is rarely a straight one.” He added that some projects come to fruition while others do not.

“Just as we have in the past with the successful development of properties such as Viking Lakes, Central Park Commons and the Twin Cities Premium Outlet Mall, we will be patient, stay engaged and learn more as proposals come in,” Maguire said. “We will continue to balance our fiduciary responsibilities, along with the needs of the sellers, the market and our community.”