A housing development slated for Rosemount's UMore Park has fallen through after the financing company and developer bowed out of the 1,500-home project.
San Diego-based Newland Communities informed city officials in September that it canceled an agreement to buy 436 acres from the University of Minnesota to build Vermillion Crossing, said Kim Lindquist, Rosemount community development director.
"Obviously, we're disappointed," she said. "We had finally gotten a concept plan approved and had a good partnership with the university."
The problem was with the financier, North America Sekisui House (NASH), said David Newman, an adviser Newland hired to work on the UMore project until last week. "My understanding is that NASH was directed not to invest in any new projects until they're able to resolve some financial issues," he said.
Financing with the Japanese homebuilding company, which is among the world's largest, fell through in the spring, Newman said. Newland then tried to obtain other funding but couldn't do it.
Newland worked on the project for more than 10 years and was disappointed that it fizzled, he said, adding that other Newland projects weren't affected.
"Newland loves the project, I love the project, we love Rosemount," Newman said. "The city was very supportive of what we were trying to do."
The developer is known for large, master-planned communities, he said, including Stonemill Farms in Woodbury, which Newland officials say was the Twin Cities' bestselling development during the most recent recession.
