Fresh faces in Oakdale as city project takes off

It's the Oakdale of the future: a vacant shopping mall demolished, an upscale senior living complex and a Hy-Vee grocery store rising in its place.

"It had been an eyesore, no reinvestment," Bob Streetar, the city's community development director, said of Oakdale Mall. "When you've got a blighted, rundown mall, that sends a signal, do not move here."

Using tax-increment financing, the city bought the mall in 2011 for $7.1 million and then tore it down. The site at 10th Street North and Interstate 494 looks remarkably different today, with The Waters of Oakdale, having 92 apartments, opening next week on about three acres on the north end.

A new Hy-Vee supermarket and other retail businesses will be built on the remaining 12 acres, completing an overall development known as Tartan Crossing worth $24 million in taxable value.

"It's important because it's a nice development and it's important because it sets the tone for the future where Oakdale needs to go," said Streetar, who noted that the City Council took a risk during the recession. "This is what can be achieved if everybody thinks practically and solves the problem. That takes leadership to do that, especially in the middle of the recession."

Even as Tartan Crossing roars ahead, a 35-year-old Kmart across the street surrendered to a changing business climate, leaving yet another empty storefront in Bergen Plaza. Last week's closing, said corporate spokesman Howard Riefs, came about because of a corporate desire to pursue an "integrated retail" strategy that includes online shopping.

John Hunsicker, the Waters Senior Living vice president who developed the Oakdale project, described the Kmart closing as a "cycle of retail" and said he's looking to Hy-Vee's imminent arrival with excitement.

"One of the risks we took when we came to Tartan Crossing was we didn't know who our neighbors would be," he said. "It's a nice fit to be partners on the site with a quality operation like Hy-Vee."

Hy-Vee's arrival further shows the city's commitment to improving Oakdale's marketplace, Hunsicker said. He applauded the risk the City Council took with Tartan Crossing.

"They made a commitment to rebuild the center of Oakdale," he said. "We like the Washington County market, Oakdale being right in the heart of it because of the aging population and strong demographics in that area."

Hy-Vee will employ as many as 400 people, said Mayor Carmen Sarrack, who says he's "feeling great" that the city's investment turned out as envisioned. The city now wants to find businesses for Tanner's Lake, another major redevelopment, along Century Avenue near the 3M headquarters, he said.

Development crucial

Streetar said strong business developments are essential to maintaining healthy neighborhoods. People want to live close to varied services and they're more inclined to stay longer and improve their neighborhoods when they see prosperity nearby, he said.

"It sends a message to current and future homeowners, 'Do I want to stay here if I see a mall that's been sitting here for two decades?' " he said. "At the time it was sending a message, this is not a healthy place, there's no market here."

Land devoted to acres of "gray fields," as he calls them — looming parking lots at big-box retailers — becomes more valuable when it's redeveloped with an assortment of businesses, such as Tartan Crossing will demonstrate.

The Hy-Vee store will have a pharmacy, liquor store and 122-seat restaurant. A separate gas station and convenience store will include a coffee shop.

Construction will start this month, and the stores will open about a year from now, Streetar said.

The city of Oakdale paid for road and sewer improvements, but otherwise most of Tartan Crossing is privately developed, he said.

"We're not going to sit around," Sarrack said. "Sometimes, cities reach a certain point and they start to decline. We don't want that to happen in Oakdale."

Kevin Giles • 651-925-5037