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Victoria council approves Downtown West agreements after construction update
Summary
The City of Victoria approved three agreements advancing the Downtown West development after hearing a construction progress update and a staff briefing on the city's financial participation, including rent caps and protections to preserve small-business space.
The Victoria City Council voted to approve three measures advancing the Downtown West development — the purchase agreement, an options agreement, and a third-edition development agreement — after staff and developers updated the council on project progress and city protections.
Community and economic development director Jen Brewington told the council the site has been discussed since the early 2000s and that phase 1 will deliver core public infrastructure and four commercial buildings. “As part of the agreement, base rents for the commercial spaces are capped at $25 per square foot for restaurant space and $30 per square foot for retail space,” Brewington said, adding those rates are locked for the first 10 years of each lease with CPI adjustments thereafter to help small businesses access space.
Developer representatives also reported winter construction progress on the roughly 12.5-acre site north of Highway 5. Josh Ortmeier, vice president of construction for SW Group, said the team has removed trees and completed about three-quarters of the mass grading: “We're about 75% done with that right now,” he said, noting roughly 35,000 cubic yards of material moved.
Council members praised the collaborative approach and emphasized protections for the city's investment. Brewington said the city’s advisors and counsel concluded the participation does not constitute a business subsidy under the cited Minnesota statutes included in staff materials; the city also retains options to repurchase the property if the developer fails to complete the project as agreed.
The council adopted the three motions by voice vote. The approvals clear the way for the developer to continue phased construction; staff noted further site-specific permits and MnDOT approvals may be required for access and that project phasing may affect construction timing.
The council also approved the final plat for Downtown West Third Edition later in the meeting, which includes retail buildings, mixed-use structures, and a public plaza, with outlots dedicated for wetland preservation. Staff said the retail and plaza portions are expected to open in 2027 if market and permitting timelines hold.
