Presbyterian Homes & Services made its final $7.85 million payment last week for the Wayzata Bay Center, which the Wayzata Bay Redevelopment Company will turn into a $255 million development.

Roseville-based Presbyterian Homes purchased the center from Ray Mithun and John Berg of Superior Lake Street Properties, LLC, who have owned it for six years. The final payment was financed through private equity.

In total, Presbyterian Homes paid $22 million for the 16-acre property, a former wetland that was filled in during the 1960s and developed into the Wayzata Bay Center-a shopping complex.

Presbyterian Homes announced the purchase of the property in October 2008. At that time, development was scheduled to start in spring 2009 and was supposed to be finished by the fall of 2010. However, in March 2009, the Wayzata Bay Redevelopment Company announced that the project would be delayed due to the economic downturn.

John Mehrkens, vice president of development for Presbyterian Homes, said in a statement that the challenging economy has delayed the project, but the development plans have not changed from those that were approved by the Wayzata City Council in 2008.

Wayzata Bay Redevelopment Company will break ground on the initial phase of the project in late spring 2011. The initial phase consists of about 250 housing units-which include a range of types of senior housing, including fully independent living, assisted living, and acute nursing care-and 35,000 square feet of retail space.

The initial phase of the project is expected to be completed in mid-2012.

The subsequent phases of the project have not yet been scheduled, but the project will eventually include 125 market-rate condos, 25,000 square feet of office space, a 100-room hotel, and an additional 100,000 square feet of retail space. It will also include a public park.

Ed Briesemeister, managing director of Wayzata Bay Redevelopment Company, said that the project is expected to be completed by 2015. According to Briesemeister, there is already a list of more than 300 people interested in the housing units. Presbyterian Homes will start taking reservations early next year.

“When the project is completed, this will truly be the signature redevelopment project we have all envisioned,” Mehrkens said in a statement.

Presbyterian Homes develops retirement communities and provides a variety of support services for seniors. It manages 36 retirement communities, most of which-31-are located in Minnesota.