Council, EDA approve Marsh Run 3: 44‑unit apartment with nine affordable units cleared for permits and tax‑increment note

Minnetonka — The City Council on Aug. 11 approved master development and final site and building plans for Marsh Run 3, a 44‑unit apartment building proposed for 11800 Wayzata Boulevard, completing the redevelopment of the Marsh Run parcel group. The project includes nine affordable units (20 percent of units at 50 percent area median income under the proposed financing agreement), a mix of one‑ and two‑bedroom apartments and both enclosed and surface parking.

The council’s land‑use approval followed a presentation by city staff and an extended public hearing with a mix of supporters and opponents. Supporters included residents of the nearby Burke apartment building who said affordable units there provide housing and community supports for adults with disabilities; one Burke resident told the council “I would rate my life at the Burke a 10.” Opponents from adjacent townhome and condominium complexes said the neighborhood has absorbed substantial new development in recent years and expressed concern about parking spillover and pedestrian safety on Fairfield Road.

What was approved

The site plans call for one story of enclosed parking with three stories of residential units above; staff described the design vocabulary as consistent with the adjacent newly built apartment projects (the Burke and the Vail). The applicant committed to on‑site stormwater controls (including an underground facility), a rebuilt site grading plan that raises portions of the lot to meet floodplain requirements, and a tree and landscaping plan. Staff reported the project would remove 14 high‑priority trees and one significant tree but would meet the city’s green‑space requirement.

Finance and affordability

The City’s Economic Development Authority (EDA) approved a separate resolution to issue a $850,000 pay‑as‑you‑go tax increment revenue note to support the affordability component of the project. The developer and staff described the note as 5 percent interest for a 15‑year pay‑as‑you‑go term; affordability covenants in the development agreement require a 30‑year affordability period and acceptance of Section 8 vouchers where applicable. The EDA vote approving the contract and note was unanimous.

Traffic, parking and planning staff findings

City‑commissioned traffic analysis estimated the Marsh Run 3 project would generate roughly 200 daily vehicle trips — slightly less than a fully occupied office building — and found nearby intersections would continue to operate at acceptable levels of service in modeled peak periods. Staff said the proposed parking (underground + surface) meets city code and Institute of Transportation Engineers demand models. Staff acknowledged prior nuisance parking issues around Fairfield Road after earlier redevelopment but said those problems have reduced following no‑parking restrictions and enforcement; police records cited by staff showed prior enforcement activity in 2023 and minimal complaints in 2024–25.

Public comment summary

More than a dozen speakers addressed the council in a public hearing split between supporters and opponents. Supporters, many of them current Burke residents or family members, described the Burke as a supportive, stable community for residents with disabilities and urged approval of additional affordable units. Opponents from Bay Hill and nearby townhomes focused their remarks on cumulative neighborhood change, pedestrian and traffic safety on narrow Fairfield Road, trail access and long‑term parking impacts; some urged postponing approval until the Vail’s occupancy impacts could be fully observed.

Council and EDA actions

At the council meeting, Commissioner (Council member) Foster Bolton moved to approve final site and building plans and the associated expansion permits and variances; Council member Ramelli seconded. The council also added two conditions at the council’s direction: (1) the developer will work with city staff and Metro Transit on modest bus‑stop/sidewalk enhancements at the Wayzata Boulevard/Fairfield Road stop to improve pedestrian access, and (2) the roof will be designed to be “solar‑ready” so rooftop solar can be accommodated in the future. Both conditions were accepted by the applicant. The council’s vote carried unanimously.

Separately, the City’s Economic Development Authority voted to approve a redevelopment contract and to issue the $850,000 pay‑as‑you‑go tax increment note to support the nine affordable units (motion by Commissioner Wilburn; second Commissioner Calvert). The EDA vote was unanimous.

Next steps and oversight

With approvals in place, the applicant will submit final engineering, grading, and building permit applications. Under the financing agreement the developer receives increment only if incremental tax revenue materializes; affordability requirements and management covenants are written into the contract and require a 30‑year period of restrictions. City staff and the EDA will track compliance with the affordability covenant and scheduled pay‑as‑you‑go disbursements.

Ending

Council and EDA members described the decision as fulfilling long‑standing redevelopment expectations for the Marsh Run area while adding more affordable housing to the city’s inventory; opponents asked staff and the developer to monitor parking and pedestrian safety as the adjacent properties reach full occupancy.