Developer starts work at former Carriage Hills site

Amid an unprecedented housing slump, one of the biggest U.S. homebuilders has begun its development of a former golf course in Eagan.

The Stonehaven development is being built on about 115 acres that used to be the Carriage Hills golf course.

Lennar Corp. received approval from the City Council to build 39 single-family homes in the first phase of a 363-home development that will feature 35 acres of natural open spaces.

The site and equipment preparations began Thursday, and Lennar will start turning dirt full-speed next week, said Tim Fohr, a spokesman for the builder's Minneapolis-St. Paul division.

"We anticipate being able to start our model home the first part of August and production on homes late September or October, once streets are in place," he said.

Fohr said the builder will offer incentives to buyers, who are expected to range from first-time buyers to seniors who need assisted living. Lennar will offer the incentive to buyers who use Universal American Mortgage Co., and it will probably include a builder's contribution to closing costs, buying down the interest rate or both, he said.

From 2003 through 2008, neighbors and others had opposed former developer Terry Wensmann's plan to build up to 480 homes on 121 acres, with 30 acres of open space, on the former golf course. They had wanted the area to remain a green, parklike space.

The Rahn family and Wensmann sued the city after it refused to amend its comprehensive plan to allow residential development.

Then, in 2008, a unique rezoning settlement allowed a variety of houses and required 30 acres of open space. But when the building market slumped, Wensmann's plan collapsed.

The city bought about six acres of the site last year for a new fire safety campus.

Now, Lennar's proposal reduces the number and modifies the type of housing units to include single-family houses, townhouses, twin homes and a senior housing building.

"To their credit, Lennar has worked hard with neighbors to reduce housing density, plan walking trails and preserve relatively more open space," Eagan Mayor Mike Maguire said.

Lennar said it will provide "enhanced outdoor living experiences" through more than 35 acres of natural open spaces, recreational trails, extensive sidewalks, natural wetlands, woodland areas and ponds.

On July 14, Lennar will hold a "sneak preview" at the Eagan Community Center for both area residents and potential buyers, showing community plans and a virtual tour of the models to come.

Stonehaven's homes will range from 1,700 to more than 3,300 finished square feet. Prices will range from $200,000 to more than $500,000, and the homes will have energy-efficient features.

Miami-based Lennar builds homes in 17 states. In 1990, it acquired the parent company of Twin Cities builders Orrin Thompson and Lundgren.