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Development of Opus Overlay District

League of Minnesota Cities - 2010 - City of Excellence Awards (20,000+)

Summary

The City of Minnetonka, MN created a unique funding structure using multiple public and private resources to finance a $20 million expansion of a state highway into a popular business park. As a result of securing financing for the road infrastructure, immediate redevelopment has occured in the area, which is estimated to add $40 million to the region's property tax base and secure the addition of 1,700 new jobs for the community.

Description

The city created a unique funding structure using multiple public and private resources, and traffic counts generated by new commercial development to finance a $20 million expansion of State Highway 169 into the Opus II Business Park.

The project involved partnering with UnitedHealth Group to initially capitalize one-half of the total costs for improvements to the business park’s only freeway interchange entrance at State highway 169 and Bren Road. The state committed to finance permanently, through grants, the remaining one-half as a match to the local and private obligations. Revenue from “trip fees” will be used to pay back the local/private financing partners over time, as the business park redevelops.

The effect of securing financing for the road infrastructure has been to immediately initiate redevelopment in an important city economic development corridor, which will add an estimated $40 million to the region’s property tax base; secure the addition of 1,700 new jobs for the community—900 of which will be new to the region; and ensure future transportation capacity for the planned redevelopment zone over the next 20 years.

info info
Tags: Collaboration/Intergovernmental Cooperation, Economic and Community Development, Public Infrastructure





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