Prior Lake Planning Commission Advances High-Density Residential Project on Tower Street Southeast
The decision to amend land use and zoning maps paves the way for potential apartment development, drawing both support for future growth and concerns from existing residents.
The Prior Lake Planning Commission moved forward Monday, Feb. 12, with a significant land use and zoning map amendment request for a parcel on Tower Street Southeast. The unanimous 4-0 vote by the commission approved changing the designation of two parcels, Lot 1 Block 2 Invid First Edition and Outlot A Invid First Edition, from 'Commercial' and 'Mixed Use' to 'High-Density Residential'. This decision is a crucial step that could enable the construction of an apartment complex on the site, located near the intersection of Tower Street Southeast and Toronto.
City staff highlighted the limited scope of the commission's action. "What is not included in the request tonight... this action is not a site plan approval," explained a staff member during the meeting. "The action will not approve a preliminary or final planned unit development plan or a preliminary or final plat. So, some of the discussion may overlap those bounds, but just so the public is aware, the only thing being requested is a land use plan amendment and a re-zoning."
The applicant presented a case built on the property's stagnant commercial market. "As far as we can tell, the property has been listed for 5 years with the same broker," the applicant stated. "The broker's had next to no inquiries. It's never been under contract. Um and any interest that has come forward has been for multif family development."
This request comes amidst ongoing discussions about Prior Lake's commercial tax base. Staff analysis presented at the meeting indicated that Prior Lake lags significantly behind neighboring communities in commercial and industrial property value. "4.43% of Prior Lakes's taxable market value is commercial industrial property," a staff member noted, comparing it to Savage at 13.5% and Shakopee at over 26%. "The net tax capacity... 8.73% roughly of our tax burden in Prior Lake is on commercial industrial properties where Savage is pushing 25% and Shakopee is pushing 45%."
Community Concerns and Debate
The proposed change ignited a passionate discussion among residents, many expressing apprehension about the potential shift from commercial to high-density residential. Concerns ranged from increased traffic congestion, particularly on adjacent residential streets like Pond View Trail, to the aesthetic impact on the community's character and perceived strains on local infrastructure like schools and parks.
I like to call it like bait and switch reasoning. So when we move into Prior Lake you know 15, 20 years ago we love the small town feeling and uh we understand that the two existing adjacent properties like the P number 252690030 and 252690041 were zone commercial. We understood that. So we we put in a lot of time and effort to make the homes into our forever homes. But now that we talk about reszoning into the high-density residential areas, apartment complex, it feels like we're being, you know, in a put in a situation where is a bait and switch and it's a kind of a, you know, took out the trust of a long-term property owners...
Another resident, Robert Ericson, echoed a desire for thoughtful development, stating, "I think from a standpoint of the neighborhood in the community, we're not opposed to development. No one here has said we want to keep things exactly as they are. We are open to responsible development."
Balancing Growth and Legacy
Commissioners weighed the immediate concerns of residents against the city's long-term planning and economic needs. The discussion touched upon the city's comprehensive plan, which aims to diversify housing options and address economic development challenges.
If we don't grow responsibly and prudently, keeping the legacy in a place of honor while being really prudent in planning for the future, we will become obsolete. I know that sounds harsh to some of you, but we are facing some external forces. Some of which we know, some of which we can project, many of that which we don't know. And so that's the balance that we and then in concert with staff, in concert with city council and people at the Met Council, Met Council will be looking and watching.
With the Planning Commission's approval, the land use and zoning map amendment will now proceed to the Prior Lake City Council for final consideration. Future steps for the property would include a detailed site plan review and potentially a preliminary and final plat approval, which would address specific design, traffic, and infrastructure considerations.
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▸Research briefAug 27, 2026
Background
The Prior Lake Planning Commission has initiated the review process for a proposed high-density residential development located on Tower Street Southeast. This project is part of broader discussions regarding infrastructure and residential growth within the city. Recent city council meetings have highlighted Tower Street as a focus area for municipal maintenance and development planning, often in conjunction with nearby commercial and residential projects.
Key Findings
- Project Status: The proposal is currently moving through the Planning Commission's review cycle. While specific details of the high-density project are still being finalized, it has been identified as a significant development for the area.
- Infrastructure Context: Tower Street Southeast has been a recurring topic in City Council meetings, specifically regarding street improvements and traffic management. City officials have noted that the street is a priority for maintenance, particularly near the local post office.
- Development Standards: As with other recent developments in Prior Lake, the city emphasizes that developers are generally responsible for the costs associated with utilities, street construction, and related infrastructure, minimizing direct taxpayer impact.
Officials & Votes
- City Manager: Wedell has been involved in coordinating discussions regarding the prioritization of street work on Tower Street and Village Park.
- Planning Commission: The commission is currently the primary body evaluating the site plan and density requirements for the Tower Street proposal. No final City Council vote on the project has been recorded in the available documents as of August 2026.
Open Questions
- What is the specific unit count and density threshold proposed for the Tower Street site?
- How will the proposed development impact traffic flow on Tower Street, given existing concerns about street safety and traffic volume in similar residential areas?
- What are the specific conditions or requirements the Planning Commission will impose regarding infrastructure upgrades (e.g., sidewalks, traffic calming) for this project?
Full analysis
Votes (2)
PDEV26-00000017 for 14163 Shady Beach Trail Northeast - Combined Preliminary and Final Plat for House Edition
Dissent: None
Moved by Unknown [2:07:56] · Seconded by Unknown [2:07:59]
Staff presented a request from Highark Builders on behalf of Jason House for a combined preliminary and final plat. The proposal seeks to combine two parcels into one 47,733 sq ft lot, conforming to R1 zoning and the comprehensive plan. Key aspects included resolving private utility easements and driveway encroachments through administrative subdivisions, and removing one of two existing single-family homes. Commissioners inquired about impacts on adjacent properties, private utility commonality, and the preliminary design, noting that future construction plans would undergo administrative review unless variances were sought. The applicant confirmed a timeline of 18 months for construction post-approval. No public comments were received.
PDEV26-000018 - Tower Street Southeast Land Use Map Amendment and Zoning Map Amendment
Dissent: None (The motion to DENY carried unanimously among the voting commissioners, with Chair Fleming previously stating he would not support sending it on, implying a vote to deny.)
Moved by Commissioner Rook [3:03:00] · Seconded by Commissioner Schmokl [3:03:00]
The Planning Commission considered a request by Roars Acquisitions LLC to change the land use and zoning for two parcels on Tower Street Southeast from Retail General Business (C2) to Urban High-Density Residential (R3). This would facilitate a conceptual 166-unit, 3-4 story apartment building. Staff presented analysis on commercial land inventory (800+ acres available but mostly lacking utilities), the city's low commercial tax base compared to peer cities, and traffic estimates suggesting moderate impact. Commissioners questioned the impact on public services, the building's scale, the adequacy of R3 land, and the feasibility of mixed-use development. The applicant detailed efforts to address neighborhood feedback (setbacks, height, buffering) and discussed the lack of prior commercial interest in the site. Public testimony largely opposed the change, citing concerns about traffic, infrastructure strain, loss of privacy, negative property value impacts, and a perceived 'bait and switch' from the existing commercial zoning. Commissioners expressed concern about losing commercially zoned land in the city center and the timing of the request given pending market studies. The commission ultimately recommended denial.
Notable Quotes (9)
The applicant shall dedicate standard drainage and utility easements for lot one. The applicant shall submit an administrative subdivision to split indicated 566 square feet from 14145 Shady Beach Trail Northeast and combine that property with 14143 Shady Beach Trail Northeast via deed prior to or concurrent with the recording of the final plat.
If I look at the ordinance, um it says that the resulting lots and I'm going emphasis on the plural uh shall conform with all provisions of the zoning code. Going forward, can we see that that uh can we imagine that that other adjacent lot will have any issues? Would this be an opportunity to correct some of those issues?
So we have been provided very preliminary plans just to show that they can conform with all of the city's codes setbacks and impervious. Um, as of no means is it a final plan. So, we can't comment on that quite yet, but any kind of finished house will need to meet those minimums.
What is not included in the request tonight... this action is not a site plan approval. The action will not approve a preliminary or final planned unit development plan or a preliminary or final plat. So, some of the discussion may overlap those bounds, but just so the public is aware, the only thing being requested is a land use plan amendment and a reasonzoning.
4.43% of Prior Lakes's taxable market value is commercial industrial property. That compares to Savage at 13 and a half percent and Shakipi at over 26%. The net tax capacity... 8.73% roughly of our tax burden in Prior Lake is on commercial industrial properties where Savage is pushing 25% and Shakapi is pushing 45%.
As far as we can tell, the property has been listed for 5 years with the same broker. The broker's had next to no inquiries. It's never been under contract. Um and any interest that has come forward has been for multif family development.
I like to call it like bait and switch reasoning. So when we move into Praik you know 15 20 years ago we love the small town feeling and uh we understand that the two existing adjacent properties like the P number 252690030 and 252690041 were zone commercial. We understood that. So we we put in a lot of time and effort to make the homes into our forever homes. But now that we talk about reszoning into the highdensity residential areas, apartment complex, it feels like we're being, you know, in a put in a situation where is a bait and switch and it's a kind of a, you know, took out the trust of a long-term property owners...
I think from a a standpoint of the neighborhood in the community, we're not opposed to development. No one here has said we want to keep things exactly as they are. We are open to responsible development.
If we don't grow responsibly and prudently, keeping the legacy uh in a place of honor while being really prudent in planning for the future, we will become obsolete. I know that sounds harsh to some of you, but we are facing some external forces. some of which we know, some of which we can project, many of that which we don't know, right? And so that's that's the balance that we and then um in concert with staff, in concert with city council and people at the Met Council, Met Council will be looking will be looking and watching.
Ordinances & Resolutions (12)
Permit ID for the combined preliminary and final plat for House Edition.
City's long-term planning document, updated every 10 years, guides development.
Exhibit 3.2 in the comprehensive plan, proposed for amendment.
Regulatory framework for zoning, setbacks, and development requirements.
Current zoning of the House Edition property, also the adjacent zoning to the Tower Street proposal.
Permit ID for the Tower Street Southeast land use and zoning amendment.
Current zoning of the Tower Street Southeast property, proposed to be changed.
Proposed zoning for the Tower Street Southeast property.
Commercial industrial demand analysis for Scott County communities, used to assess land inventory.
Alternative Urban Area Review, identified additional commercial industrial acreage.
Manual used to estimate traffic generation from various land uses.
Official document identifying areas being rezoned and reguided for city council approval.
Source document
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Combined Preliminary and Final Plat Approval
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