Cedar Grove holdouts nearing end of the line

After years of planning and legal battles, the long-awaited Cedar Grove development in Eagan seems to be obstacle-free.

A major barrier was removed late last month when the Minnesota Court of Appeals upheld a lower court ruling in the city's favor in an eminent domain case brought by three businesses who did not want to be moved for the project.

But that does not mean the businesses are going quietly. They still have until the end of this month to decide whether to petition the state Supreme Court to review last month's ruling.

"I still haven't figured out what I am going to do," said Randy Quam, who owns Competition Engines, one of three businesses fighting the city.

Gerald Larson, owner of Larson Automotive Repair, said he also has not decided whether to seek further legal action to try to block the taking of his property. His business closed years ago during the ongoing legal battle.

Representatives of U-Haul, the third business affected, did not return calls seeking comment on the issue.

The city's goal is to build a sustainable village with senior housing, apartment buildings, two hotels and retail space. So far, none of it has materialized, which the city mostly blames on the economy.

"You're down here taking our property and you don't have a clue what you are going to do with it," Larson said.

But city officials say there is nothing they can do about what is built there until a developer comes up with a proposal, which might happen this year if the economy picks up enough strength.

"The recession has definitely been our biggest problem," City Administrator Tom Hedges said. "Whether we'll break ground this year, we hope so."

Quam said he still believes he is right in his fight with the city. "Of course I'm not really happy that that court ruling happened," he said.

Banking on a recovery

"After nearly three years of litigation, we are confident that this ruling removes the legal uncertainty so that the redevelopment in Cedar Grove can now move forward as the economy recovers," Eagan Mayor Mike Maguire said in a statement on the city's website. "The city remains committed to working toward an amicable final resolution regarding appropriate compensation for their properties."

In late December, the Court of Appeals ruled against U-Haul, Larson Automotive and Competition Engines Inc., the three businesses that sued the city over its eminent domain condemnation process.

The December ruling followed another ruling last summer that affirmed the city's authority to take the properties in anticipation of the project.

In preparing for the project, the city has taken over dozens of properties located east of Cedar Avenue on Hwy. 13. The land is where the Cedarvale shopping center used to be. The city has cleared most of the buildings.

City officials said the litigation did not impact the scope or timing of the project, but clearing up the legal picture could help move it forward.