Hennepin County District Judge Thomas Sipkins has ruled in favor of the city of Wayzata in a lawsuit filed by developer Brad Hoyt's Continental Property Group last January.
The lawsuit was filed after city officials rejected the company's proposal for a five-story, mixed-use building, citing the fact that the area in question at the east end of Lake Street is only zoned for three-story buildings.
Continental Property Group secured approval for a three-story development a decade ago, but returned to the city last year to request approval for redevelopment of the property and two parcels adjacent to it into a five-story building with retail options, 148 apartment units, and parking -- an ongoing problem to which city leaders have been seeking viable solutions for years.
The lawsuit stated that the Promenade of Wayzata, at the western end of Lake Street and the city's largest redevelopment project to date, is five stories and includes retail, offices and residential options through Folkestone senior living community and the Regatta and Quayside non-age-restricted apartments and condos.
The city stated that the Promenade sits on more than 13 acres, and according to city ordinances its height is therefore negotiable.
Hoyt has been involved with multiple development-related suits in the Twin Cities, and in the early days of the Wayzata suit, one of the properties he planned to redevelop at 253 Lake Street was painted hot pink and an XXX sign was hung over its edifice, leading to short-lived rumors that an adult entertainment space was opening in the heart of Wayzata's retail and tourism district.
Hoyt is now planning to move forward with other downtown Wayzata property owners and the city -- a $28 million project for three office buildings (to stand three stories) at the 235-259 Lake Street East properties was discussed during the City Council's Aug. 18 meeting.
Property developers would also seek tax-increment financing for the construction of a 352-space parking ramp on the properties, estimated at a little over $9 million. The ramp would be open for public use during off-hours.
All proposals related to the project remain in the early planning stages.