Kraus-Anderson out on Blake Road project.

Byline: William Morris

After more than six months of work, Kraus-Anderson and Minnehaha Creek Watershed District have agreed the time is not right for a major mixed-use development at 325 Blake Road in Hopkins.

The district announced Wednesday it has parted ways with Minneapolis-based Kraus-Anderson, which it selected in June to redevelop the 17-acre property at the corner of Blake and Lake Street. The property is just north of the Southwest Light Rail Transit project's future Blake Road station.

Kraus was chosen out of five companies that answered a December 2017 request for qualifications with a plan called Blake Green that would have included 465 market rate, affordable and townhome residential units and space for local retailers. The project also includes stream bed restoration on the nearby Minnehaha Creek with trail connections and other public amenities.

In its statement, the watershed district said the parties "could not come to terms on a vision and purchase price that was satisfactory to both parties."

From Kraus-Anderson's perspective, the issue was not so much of vision as of space, Senior Vice President Matt Alexander said.

"It wasn't a difference in vision. It was just the watershed needing to prioritize the work they need to complete to help define the developable area," he said in an interview, adding that it did not make sense to continue with plans for private development until the boundaries of the public amenities were hammered down.

The watershed district is, indeed, moving forward with that portion of the project, with plans to design the streambank restoration and stormwater management elements this year and begin construction next winter. The site is currently vacant after the previous building, a 1950s-era cold storage warehouse, was demolished last year.

The months of planning with Kraus-Anderson have helped the district refine those plans, Board President Sherry White said in an interview.

"We're really happy to have had the chance to talk with Kraus-Anderson to further refine the potential of this property," she said. "It was always intended we...