UnitedHealth Group is looking to add a third building to its campus at the Opus II Business Park area in Minnetonka, but it doesn't have the room to do so right now.

Recent development and redevelopment in the business park is pushing the Bren Road interchange at Highway 169 close to its capacity - especially during the evening rush hour.

It will cost about $20 million to improve the interchange to offer more capacity. Though the state will fund about half of the cost, it still leaves $10 million in costs before development or redevelopment can continue in the business park.

The city of Minnetonka is planning to approve an ordinance that would enact a "pay-your-own-way" approach in funding development projects.

The City Council introduced the ordinance at its Nov. 9 meeting, which is designed to have businesses pay for improvements based on trips generated by their developments. It is a similar approach taken under an existing ordinance that covers the I-394 corridor.

The council referred the ordinance to the Minnetonka Planning Commission Nov. 9, which will review it before the council adopts it, scheduled for Dec. 7.

The ordinance wouldn't affect existing residential properties unless they were redeveloped into a non-residential use. The approach is intended to have new development "pay its own way," based on the project's fair share of trips utilizing the Bren Road and Highway 169 interchange, according to a city report.

The city has held meetings with individuals, property owners, tenants and businesses in the Opus II area discussing the specifics of the measure.

"I have not received any letter or correspondence concerned about the ordinance," said Julie Wischnack, Minnetonka community development director. "Properties that cause the need for the improvement pay for the improvement. You don't pay any money unless you do something."

She said UnitedHealth Group, which is planning to build a 350,000-square-foot building on its property, was willing to pay up to $5 million for the improvements.

The properties in the Opus II area contribute traffic trips to the Bren Road interchange in different proportions. For instance, properties closer to the interchange or those with larger buildings and a greater number of employees contribute more vehicle trips than properties far from the interchange with smaller buildings and workforces.

The proposed ordinance applies to commercial, office and industrial properties. Residential properties were excluded because they have much less impact on the interchange's peak-time capacity.

City staff's report stated the ordinance would allow continued development in the area, create an improved flow on internal roads and eliminate back-ups on Highway 169 ramps.

Though Gov. Tim Pawlenty's office recently released a report stating that construction work on the Bren Road interchange could start in spring, Wischnack said fall 2010 was a more likely scenario. The reconstruction is expected to last one year, she said.

Current Rating: 0 of 0 votes!

Rate File: Select Rating: * ** *** ****