A plan from Roers Companies and Scannell Properties to bring up to $300 million of new development to the former Prudential campus in Plymouth has reached another milestone with the Plymouth City Council’s establishment of an $87 million-plus tax increment financing district related to the redevelopment.
Tuesday night, the City Council passed a resolution that established and defined the boundaries of the Prudential TIF district, which is expected to generate $87.3 million over 26 years for public improvements and other redevelopment-related costs.
A city spokesperson confirmed Wednesday that the Prudential project is the “largest TIF request the city has worked on in recent history.”
A final TIF agreement will be up for approval at a future City Council meeting, Emilie Kastner, the city’s communications manager, said in an email.
“The City Council established the TIF district and approved the TIF district plan [at Tuesday’s meeting]. However, the City Council did not approve an assistance amount for developers that will be negotiated and approved by City Council at a later date,” Kastner said.
Roers and Scannell have long planned to bring hundreds of housing units and other new development to the former Prudential campus, which is surrounded by Interstate 494 on the west, Bass Lake Road on the north, and Northwest Boulevard and Chankahda Trail on the east and southeast.
In 2022, SPRC Land Ventures Plymouth LLC, an entity related to Indianapolis-related Scannell, paid $20.4 million for the property, according to Minnesota Department of Revenue records. New Jersey-based Prudential Insurance Company of America was the seller.
The newly established TIF district will “facilitate” the multiple-phase campus redevelopment, which will eventually include 800 apartments, 60,000 square feet of office, and 200,000 square-feet of industrial space, according to a report from Ehlers, the city’s financial consultant.
Also planned are a 60,000-square-foot grocery store, 31,000 square feet of retail space and major improvements to Chankahda Trail and intersections at Country Road 61 and County Road 10.
A city staff report reveals that the TIF revenue will be used for “a combination of land, site improvements, utilities, administrative costs, and other qualifying costs, mainly the city’s public improvements.”
Meanwhile, the developers have started demolition on the campus and are “fast-tracking” construction of a new 80,000-square-foot building for Summit Orthopedics, according to a city staff report.
“Summit Orthopedics wanted to get in the ground quickly, so that’s why we’re having the public hearing so they can be in the district and we can capture that increment,” Stacie Kvilvang, senior municipal adviser for Ehlers, said at Tuesday night’s City Council meeting.
Kvilvang added that Ehlers and the city are still working with the developers on “some of the nuances” of the TIF assistance. Still to come is an official agreement that outlines “how much we’re providing the developer” and “what they have to do in order to receive those dollars,” she said.
Grant Fernelius, Plymouth’s Community and Economic Development director, said the project is now called “The Boulevard.”
“When fully built out, and this is probably a low estimate, we think that the total private investment will be somewhere around $250 million, so that will be an improvement to our tax base and, I think, an important redevelopment of a site that is in need of redevelopment,” Fernelius said Tuesday night.
Brian Roers, co-founder of Roers Companies, said in May that the developers “couldn’t be more excited” about the redevelopment.
“This is one of those sites it’s 77 acres inside the loop in a very, very prominent, great location. We have retailers major names that I don’t think I can disclose yet,” Roers said in an interview with Finance & Commerce.
Next steps in the approval process include the final plat and development agreement, which will go before the City Council on July 23, Kastner said.
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