The Key Inn motel and the former Spire Credit Union in Woodbury are to be demolished to make way for a mixed-use development that will include a medical office building and retail spaces.
The Woodbury City Council on Oct. 9 approved Minneapolis-based Lupe Development Partners' planned unit development application for the project. The plan is to replace the motel, located on Valley Creek Road close to Interstate 494, with a 34,000-square-foot medical office building.
The developer will also demolish the former Spire Credit Union, which has served as an office building, and construct a 5,000-square-foot drive-through restaurant and a 5,000-square-foot retail building anchored by a new credit union. Two other office buildings on Woodlane Drive would also be renovated for multitenant use. The Cowboy Jack's restaurant nearby isn't a part of the development project.
"This is too good of an intersection to have these really outdated, circa 1970s, old buildings there," said Steve Minn, vice president and chief financial manager of Lupe Development. "It really needs to be refreshed."
Lupe Development plans to begin demolition of the Key Inn early next year and the former Spire Credit Union building in April. After reconstruction, the first new buildings will open September 2020.
Marketing and brokerage of the retail building has been assigned to Sara Martin and Molly Townsend of Colliers International. The medical office building is being marketed by Aaron Barnard and Ann Stahley of Cushman & Wakefield.