Knollwood Redevelopment Snags on $2.5 Million Stormwater Compliance Cost

Knollwood Mall’s plan to replace small interior stores with four bigger retailers around the size of Old Navy is at a crossroads as the mall’s owners negotiate with St. Louis Park over who should pay for improvements to control stormwater runoff and water quality at the site.

The city wants Rouse Companies, Knollwood’s owner, to foot the full $2.5 million to $4 million bill to bring the 37 acre development into compliance with stormwater standards.

But Rouse is calling $2.5 million a “tall order” and requesting that—for now—the mall only be required to bring the eight acres affected by the redevelopment project into compliance, at a cost of around $300,000.

City council members aren’t having it.

“Stormwater management on this site has been deferred and deferred and deferred and deferred,” Sue Santa said during a Monday work session. “It feels like it’s another deferral, like we’re kicking it down the road again.”

Council member Sue Sanger was even more blunt.

“This is a company that is not going bankrupt tomorrow, so to hear them say, ‘I can’t afford $2 million’—I’ve got a credibility problem.”

And council member Steve Hallfin said that proper stormwater management has been delayed long enough.

“They’re doing a major deal to this mall, they need to bring it up to where the stormwater should be,” he said. “This mall’s been renovated umpteen times in my 46 years on this earth, and they’ve got to get it right.”

Here’s Knollwood’s tentative plan for redevelopment:       

Knollwood building: Rouse is proposing to remove the interior mall located between Kohls and TJ Max. The interior mall will be replaced with approximately four “Junior Box” retailers about the size of stores like Old Navy.

Small “out” building: A small three tenant building is proposed to be built in the parking lot at the corner of Hwy 7 and Aquila Ave. This building will contain Panera Bread and two other retailers. The Panera will include a drive-thru and an outdoor seating area.

Parking lot: The shopping center parking lot, located between Kohls, Hwy 7 and TJ Max will be replaced and redesigned to improve traffic and pedestrian flow. The redesign will include significant landscaping integrated into the pedestrian routes through the parking lot.