Court Rules in MCWD’s Favor in Alatus Lawsuit

Court File Number: 27-CV-25-8066

A Statement from MCWD’s Board President

Minnetonka, MN – The Hennepin County District Court today ruled in favor of the Minnehaha Creek Watershed District (MCWD) in the lawsuit filed by Alatus Development LLC (Alatus) against MCWD and the City of Hopkins, over the 325 Blake Road Property. Honorable Judge Colette Routel ruled in MCWD’s favor on all points and granted MCWD’s request for a summary judgment, a full vindication of MCWD’s position.

This ruling confirms MCWD’s argument that Alatus, over several years, has repeatedly failed to perform under its purchase agreement, including failing to secure funding and missing deadlines to purchase the property. MCWD acted within its rights as the landowner and seller when it terminated that agreement.

With this dispute resolved, MCWD’s focus will now return to advancing its project at 325 Blake Road. MCWD is actively exploring options to move the project forward. Those include constructing its fully funded water quality and Greenway connection project independently; coordinated redevelopment with the City of Hopkins and a private developer with capacity and financing to build; or selling the property to Hopkins if the City chooses to acquire the site and invest in the infrastructure necessary to support development.  

325 Blake Road is part of a long-term MCWD partnership involving cities, counties, state and regional agencies, and private-sector partners to restore Minnehaha Creek, improve water quality, expand greenspace, and support redevelopment along the Minnehaha Creek Greenway.

MCWD leased and operated the former industrial site at 325 Blake Road for several years, paying local property taxes while planning its transformation, before demolishing, cleaning up the site, and routing stormwater from approximately 270 acres across three cities to the site for treatment. 

With that groundwork in place, MCWD and Hopkins jointly selected Alatus in 2021 to develop the remaining property. Over the following years, MCWD provided Alatus multiple extensions to complete the purchase, but Alatus did not secure the funding needed to close on the property or construct the development. After Alatus missed repeated deadlines, MCWD terminated its purchase agreement in March 2025 to protect taxpayer interests, and Alatus subsequently sued MCWD and the City of Hopkins.

With the litigation resolved, MCWD is able to move forward. MCWD will evaluate the most effective path to construct its water quality and Greenway connection project, while remaining open to a coordinated redevelopment with Hopkins and a capable private developer, or selling the property to Hopkins should they choose to acquire the site and invest in the necessary infrastructure.

For more than 15 years, MCWD and its partners have transformed the Minnehaha Creek Greenway through public and private investment. 325 Blake Road is a major connection in that work, and the resolution of this lawsuit allows us to focus on what comes next.

Find additional information on the 325 Blake Road site on MCWD’s website.