Oakdale Buys Mall for $6.9M, Plans $30M Renovation
The long-vacant Oakdale Mall has been purchased by the City of Oakdale for $6.9 million and will receive a $30 million facelift with the help of real estate developer Wellington Management.
According to Oakdale Community Development Manager Bob Streetar, the city entered into a purchase agreement with the mall's owner, real estate investor Joseph Kashani, in January 2010.
The parties went to court after Kashani, who purchased the mall for $550,000 in 1992, didn't hold up his end of the agreement, Streetar said. But the parties recently reached an agreement and are now expected to close on the deal by the end of the month.
The mall-which sits on about 20 acres and was originally built in 1984-will be renamed Tartan Crossing. St. Paul-based Wellington Management has been selected as the developer, and Pope Architects, also based in St. Paul, will be the project's architect.
The redevelopment plans include a minimum of 154,000 square feet of space, which will be divided into retail, commercial, office, and senior housing.
The exact number of buildings within the development has not yet been determined, Streetar said-but one concept that the city has released includes a two-story medical office building, 120 senior housing units, two retail/commercial buildings, and a one-acre pond.
The city will initially own the site-which was paid for by bonds-but will eventually sell it to Wellington. Construction is slated to begin early next year and is expected to be completed in late 2016.
The city also plans to complete some public infrastructure projects in the area using a $1.3 million grant that it received from the Minnesota Department of Economic Development, a $1.1 million grant from the Metropolitan Council, and tax increment funding. Those projects include storm water and wastewater improvements and road work.
A Wednesday morning phone call to a Wellington representative to request information about possible tenants for the new development was not immediately returned.
Wellington is among the state's largest commercial developers based on the amount of square feet it developed in 2009, which totaled 65,500.