Developer bows out of senior project
A senior project the Rosemount City Council has long tried to get going in Rosemount suffered another blow this week. Doran Companies, the selected developer for the project, sent a notice Monday to city staff stating that after conducting a new market study the company did not feel it could proceed with the project, said city administrator Dwight Johnson.
In an email to Johnson, Doran vice president of development William Stoddard stated, ""To summarize, the recent Maxfield Feasibility Study has changed drastically from the Maxfield Preliminary Demand Estimate your city commissioned in April of 2011, resulting in a much smaller Demand Capture on-site. While there still is a need for a hopeful senior living component for Rosemount, it looks like a smaller building is needed than we would want to build (one large enough to support the amenities we want to offer at our senior living communities)."
The city council had selected Doran to build and operate a senior living facility including memory care on the former St. Joseph's school property on Highway 3. Additionally the project would include a senior center.
Johnson said the study did not support the number of units the company had hoped to build and they didn't feel they could go forward without a higher occupancy.
Doran's decision puts the Rosemount City Council back to the drawing board.
At a work session Feb. 13 community development director Kim Lindquist said she had contacted Stonebridge Companies, who submitted a request for qualifications in 2011 for the project, to see if they were still interested and they indicated they were. She said she would meet with owner Wally Johnson to get a better feel for their interest and report back to the council.
The change of heart on Doran's part is the most recent drama in a long story.
In 2011 the city put out a request for qualifications for a developer to build a senior living facility in Rosemount. Three companies, DRA, Stonebridge Companies and Frisbee/ Winkleman drafted proposals.
The council chose DRA because of its working relationship to the Ebenezer Management Services, a part of Fairview Health Services. However, the group ran into financing problems. DRA leader Jim Trucker then recruited Doran Companies to take on the project.
In July 2012 the council reviewed what Doran had to offer as well as Stonebridge Companies again. At the time, they chose to go with Doran. Since then they have worked on negotiating an agreement to move forward. Some rough drawings had been drawn but no formal plans were created.
Stonebridge has done projects in the community before and Lindquist said she's hopeful they may be able to take on the project and move quickly with it. Stonebridge has built four senior living facilities including one in Inver Grove Heights and started a fifth recently.