BridgePoint Business Park in South St. Paul might take more time

BridgePoint Business Park, located in the heart of the South St. Paul industrial district, was supposed to be a state-of-the-art office/warehouse development.

That was a couple of years ago. With no tenants or financing, the 30-acre park is still sitting bare. But the city and the developer have not given up hope that the park will succeed, though it may take longer then they originally expected.

The business park, located off of Concord Street, used to be part of the city's stockyards. The land was purchased by Interstate Partners in 2006, at which time the company entered into development agreements with the city and the South St. Paul Housing and Redevelopment Authority (HRA).

The city agreement outlined that Interstate Partners would have to finish development by July of 2011. The development would be in phases, starting with the construction of a 126,000-square-foot office/warehouse and a second phase in which 93,000- and 96,000-square-foot buildings would be finished.

Recently, the South St. Paul City Council extended the deadline for when Interstate would have to complete its site improvements to December of 2013.

"This is a tough spot for people trying to build industrial and manufacturing right now," said city planner Peter Hellegers.

Hellegers said that the council was being realistic when it decided to be more flexible with the deadline.

Interstate President Greg Miller said most of the problem lies with securing financing from banks during a time when they are being extra cautious.

"We're still 100 percent committed to it," Miller said. "But for the banks we would already have a building built and leased."

"This is a banking problem, not a development problem," he added.

It may take a couple more years, but BridgePoint will be a success, Miller said. His company has built several larger business parks in the metro area, including in Eagan and Shoreview.

Branna Lindell, the executive director of the HRA, is confident that the development turn around.

The city has already finished its side of the development agreement by creating sidewalks, storm sewers and other improvements.

The HRA also has received grants from the Metropolitan Council, the Minnesota Department of Employment and Economic Development and the Dakota County Community Development Agency to help with site methane remediation, Lindell said. Over years, methane gas can build up from buried manure, remnants of the site's former life as part of the stockyards.