Once-hot office park may be rebuilt as Edina 'Gateway'

Plans are in motion to replace Pentagon Park with office towers, a state-of-the-art hotel aimed at tech-savvy travelers, and senior housing to meet growing demand.

By Mary Jane Smetanka, Star Tribune

Last update: November 13, 2007 - 6:31 PM

Back in the 1960s, Edina's Pentagon Park area was among the first suburban office parks in the Twin Cities and a hot place for businesses to locate. Today, only the location near the intersection of Interstate 494 and Hwy. 100 remains hot.

Plans to raze many of the old office buildings in the area and replace them with high-rise office towers and a hotel aimed at young, tech-savvy travelers are moving through Edina City Hall. Nearby, along the south edge of Fred Richards Golf Course, 634 units of senior housing would be built.

The 43-acre development, dubbed the "Gateway" project because it is at the main southern entrance to the city, would probably cost "in the hundreds of millions" of dollars, said Jim Nelson, a partner in Eberhardt Advisory LLC. Nelson, who is representing developer Wayzata Properties in its dealings with the city, said the development should restore the location to its historically prominent roots.

"It really was one of the factors in establishing the 494 and 100 location as a significant business location, which it continues to be both on the Edina and Bloomington sides," Nelson said. "Even though this continues to be a class A location, the properties are older and ... they become more like a class C property in the facilities and the rents they are able to command."

If the property is rezoned from office to mixed use and plans get the go-ahead, construction would start next spring with a seven-story, 150-room hotel near Hwy. 100. The hotel wouldn't have a lot of large meeting spaces but would have a restaurant, state-of-the-art technology and a modern feel. Other buildings would follow over seven to 10 years, Nelson said.

Near the hotel would be two 10-story office buildings, a 12-story office building and two parking garages. Senior housing would be built to the east, between the golf course and W. 77th Street. The senior complex would facilitate "aging in place," with townhouses for active seniors, an independent living facility and an assisted living building. The development would include walking trails and other recreational space.

Edina already has a lot of senior housing, but Nelson said demand for those units is growing in the city.

"The developer feels pretty strongly that the market for senior housing in Edina is very strong," Nelson said. "The continuum-of-care concept in housing that we're talking about is not prevalent in Edina at this point."

Townhouses would cost roughly $450,000 to $500,000 in today's dollars, Nelson said. Units in the rest of the senior development would cost less.

Representatives of Miller Dunwiddie Architecture told the city Planning Commission last month that the development would be "green" in design, stressing energy efficiency, good use of daylight, solar lighting and green roofs that can absorb storm water. Pervious pavement and an increase in green space near the golf course also should improve handling of storm water.

Residents who live near the site of the proposed development told the Planning Commission that they didn't oppose it, but several people asked that building heights be limited. Some said they were worried that the project would increase traffic in the area.

The site is just a few blocks from Normandale Boulevard and W. 84th Street, where Bloomington is continuing to develop what the city calls the premier office park in the Twin Cities. Traffic has been a big concern for people who live near that office park. One issue Edina's development impact study looked at for the Gateway project was traffic.

The presence of senior housing and the hotel should actually cut traffic in the area, Nelson said. But the city study says roads in the area still will need to be upgraded, especially at Hwy. 100 and 77th Street, along France Avenue and between I-494 and Parklawn Avenue. Sewer improvements also would be required.

The project may be voted on by the Planning Commission later this month and is scheduled to be presented to the City Council at an information session in December.

Mary Jane Smetanka • 612-673-7380

Mary Jane Smetanka • smetan@startribune.com

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