Rosemount redevelopment awaits tenants

As construction workers finish the brick facade of Waterford Commons, something more than an apartment building is taking shape in Rosemount.

The three-story building, with 108 apartments and 13,000 square feet of commercial space, is the showpiece of the city's sometimes controversial plan to redevelop its historic downtown.

Wedged between South Robert Trail and the railroad south of 146th Street, it's meant to anchor and spur downtown development, drawing people and businesses.

But first, Waterford Commons needs businesses of its own.

As residents start moving in this month -- an official grand opening is set for July 15 -- local businesses and the building owner, Stonebridge Companies, are still trying to recruit tenants for the first-floor commercial space along South Robert Trail.

"We're getting calls. It'll be OK," Wallace Johnson, president of Stonebridge, said. But given the economy, "Nobody's moving right now."

Although city officials and Johnson said they are certain the shiny new commercial space won't sit empty, finding retail or office tenants is one more hurdle for downtown redevelopment plans that have already created controversy.

There was an eminent domain battle over some of the land the city bought and then sold to the developer for $1 for the Waterford Commons site. Voters soundly rejected an $8 million referendum in 2008 that would have paid for an outdoor recreation site and upgrades to St. Joseph's Church.

And this spring, Health East, the anchor tenant of the next planned downtown redevelopment site, scrapped its plans for a Rosemount clinic. Health East officials say the decision was driven by analysis of the location, deemed too far outside their primary service area, and economic conditions.

The City Council has given Kraus-Anderson, the developer of that site, former home to Genz-Ryan plumbing just south and east of Waterford Commons, more time to find a replacement for the clinic.

Rosemount Mayor Bill Droste isn't fazed.

"All recessions eventually end," he said, noting that both Waterford Crossings and the new Robert Trail Library provide new opportunities for downtown revitalization even in a tough economy.

The goal is to restore the city's downtown, which had shriveled as suburban growth boomed, to a lively place. It's been a long and sometimes difficult process, but it's worth it, he said.

"Maybe the easiest thing would have been to do nothing, but then your community suffers," Droste said.

Deb Kaczmarek, who opposed the Waterford Commons project as a member of the group Save Rosemount, said she's not certain the community isn't suffering, given the fight over eminent domain that preceded construction.

Still, she doesn't want to see an empty building downtown.

"I'm in a position of being a reluctant cheerleader," Kaczmarek said. "I'm in an awkward position of needing to really hope that a project I despised from the get-go is a success."

Johnson, of Apple Valley-based Stonebridge Companies, said the project has been a success.

Even without the whole building finished, 50 percent of the apartments have been leased. The apartments, with one to three bedrooms, are rent for between $800 and $1,550 a month. And 20 percent of the units are subsidized to provide affordable housing.

It also features a pool and underground parking.

The new residents come from a range of backgrounds and include some older adults, a couple of young families, and a local teacher.

As for the commercial space, Johnson said he expects more activity once construction is complete. Then when the economy picks up, he said, the development will be ahead of the game in Rosemount.

"We took the first bite of the apple," Johnson said. "They're going to see more development."

Katie Humphrey • 952-882-9056