DEVELOPING A CHALLENGING SITE

Park Nicollet Health Services faced the largest and most complex project in its history when it needed to expand its St. Louis Park health campus. The adjacent land, owned by the City of St. Louis Park, was the logical expansion option. However, Park Nicollet was unable to secure financing for the expansion due to the environmental contamination on the adjacent site. As a result, Park Nicollet began to explore other options.

The City became concerned about losing its largest employer. In addition, one of the City's gateway sites would remain undeveloped and off the tax rolls which could have signaled a deterioration of the City's business climate.

To overcome these obstacles and create a first-class development, Park Nicollet called upon their trusted real estate advisor, Frauenshuh Companies. Frauenshuh Companies helped create a strategic plan that would obtain the City's endorsement and present a united front to the Minnesota Pollution Control Agency (MPCA). The MPCA's approval would encourage concerned lenders to finance the new development.

The plan included an expanded medical campus, a new retail district and improved roadway systems for the City's busiest district. The team developed an innovative financing solution that led to the creation of Hazardous Substance Tax Increment Financing, which permits the collection of new taxes to pay for environmental remediation. Frauenshuh developed the retail district as a means to generate additional taxes to pay for the improvements made under the tax increment financing.

With the MPCA's approval in hand, plans to create a thriving medical and retail district were soon a reality. The development includes a four-story, 100,000 square foot primary care facility, a four-story, 50,000 square foot surgical services center, a 679 car ramp and a 46,000 square foot retail center that features a number of national and local retailers including McDonald's, Timberlodge Steakhouse, Bruegger's Bagel Bakery, Caribou Coffee, Chipotle, and a six-screen movie theater.