Stalled construction leaves open pit in Golden Valley neighborhood

Almost three years ago, excavation started in Golden Valley as a developer prepared to build a senior home on Douglas Drive.

But in 2021, the project effectively was abandoned. What remains — a concrete-lined pit behind a sagging chain link fence — has become an eyesore for neighbors and a bit of a local mystery.

The pit, which sits in a neighborhood of small houses near Sandburg Middle School's soccer fields, was declared hazardous by the city last week. The declaration starts a process that could end with the city demolishing the concrete walls and filling in the pit. But in the meantime, the hole in the ground is still there.

"This is just — what it's been, for two years now," neighbor Kelly Johnson said with a heavy sigh as she looked across the street.

"It just looks terrible," said neighbor Elliot Russell. He said he mows the boulevard in front of the property whenever he gets sick of looking at tall weeds.

Construction simply stopped one day, Russell said, with two stories framed up. The wood was torn down, and, since this spring, all that has remained is the concrete basement and foundation.

Property records show the land is owned by Retro Cos., and the Star Tribune was unable to reach representatives of the company before publication.

In September 2020, Golden Valley issued a permit to build a 22-unit apartment building for seniors. Retro Cos. took out a $2.6 million mortgage on the property, according to documents compiled by the city. The project also got a $1.1 million loan for energy-efficiency projects, to be paid off through a special tax assessment on the finished building.

But a year after construction started, everything stopped. The property owner fired the builder in September 2021, City Attorney Maria Cisneros wrote in a report to the City Council. In November 2021, Golden Valley issued a permit to partly demolish the building because of problems with an elevator shaft. But instead of tearing the building down, the property owner asked the city to approve a different use for it.

The developer was not able to get a state license for the new type of senior-living facility he wanted to build, Cisneros said, so Golden Valley did not grant a new building permit. Work stalled.

Golden Valley has been in contact with the property owner, Cisneros said, but almost two years of talking and possible solutions have led nowhere.

"We're past the stage of just waiting and hoping," Cisneros said during a July 18 council meeting. "It's not safe to have an open pit."

The council voted to declare the site hazardous last week. Council members said they agreed it was not safe to have an open pit in the middle of a neighborhood, right next to a middle school.

Cisneros said the hazardous declaration did not cut off the property owner's ability to find a way forward. However, if the site isn't made safe in the next month and the owner does not appeal the declaration in court, the city can take control of the site, fix the pit and bill the owner for the work.

The declaration is a serious measure, but the pit has been around long enough, Cisneros said.

"We're kind of at the end of line as far as possible fixes."