Sun Sailor
While the city of Hopkins expressed interest in entering a purchase agreement with the Minnehaha Creek Watershed District for the remaining undeveloped pieces of the 325 Blake Road project, that idea is not moving forward.
In an update provided by Hopkins Mayor Patrick Hanlon at the Sept. 15 City Council meeting, he shared that the watershed district had declined the city’s offer, which would have applied to the six remaining parcels of the project for a $9.25 million price tag.
“Typically, if you were going into negotiations and talking to someone in good faith, you would hear a back and forth. At the end of the last meeting, you probably heard me say, ‘What does the watershed take to get to yes? We want to know that,’ and if you were operating with a partner in good faith, you would have had a back and forth, and they would have told us what they wanted to get, how they would have gotten to yes,” Hanlon said.
The Hopkins City Council approved the purchase agreement at an August meeting in a proposal that would have brought in the previous developer, Alatus, alongside National Housing Partnership and the city of Hopkins.
In March 2025, the Minnehaha Creek Watershed District terminated a real estate purchase agreement with Alatus, despite Alatus’ request for an extension and commitment to release nearly $1 million once an amendment to the purchase agreement was signed.
The watershed argued Alatus was out of compliance with the terms of the agreement and missing critical milestones. Alatus said construction costs, interest rate hikes and a volatile market were to blame for lagging progress.
Per the city of Hopkins’ purchase agreement, Alatus would have dropped its current lawsuit filed against the watershed, which requested a temporary restraining order and claims the watershed unlawfully terminated the previous purchase agreement with Alatus by not involving the city of Hopkins.
The litigation remains pending, and the watershed denies the allegations.
“As MCWD explores its options to advance its project, the most immediate and necessary next step is a resolution to the Alatus litigation. Following that, the district remains ready and committed to work in partnership with the city of Hopkins on a development plan backed by assured financing and clear infrastructure commitments,” wrote Maia Irvin, outreach coordinator for the watershed, in an email to the Sun Sailor.
By Natalie Cierzan