Minneapolis-based Kraus-Anderson and a Florida firm, Elion Partners, said this week that they have created a joint venture to redevelop the long-vacant State Farm Insurance site in Woodbury.

Located at Interstate 94 and Radio Drive, the high-profile property is slated to include a renovated headquarters building with shops, restaurants and additional office space, as well as plans for a hotel, bank, two medical office buildings and a day care center. The property will include 300,000 square feet of new construction, plus the old State Farm building, which spans 400,000 square feet.

The State Farm building has been vacant since the insurance company moved its headquarters to Lincoln, Neb., in 2004.

The recently formed partnership, which has not been formally named, calls for Kraus-Anderson to develop the current grounds into pad-ready sites for the development of retail and grocery stores, restaurants and shops. Site work on the multiphased project is expected to begin this summer.

Matt Alexander, Kraus-Anderson's director of real estate development, said the joint venture is in lease negotiations "with an established national hotel chain, a national high-end grocer and with several restaurant and retail tenants."

He wouldn't name possible tenants or the amount the team intends to invest in the project, but said the group will submit an application to the city of Woodbury in the next 60 days.

Shlomo Khoudari, managing principal with Elion Partners, said in a statement the "natural landscape and thoughtful public realms will tie the common areas together into a visually interconnected experience, which will be pleasing to the office and retail patrons, as well as to the Woodbury community."