The Woodbury City Council has directed staff to begin master planning for properties near Cottage Grove Drive and Dale Road in Southeast Woodbury, with construction potentially starting in 2026.

The council previously delayed development in the area until progress was made on the city's permanent water treatment plant. With construction now underway on that facility, the city is moving forward with planning to meet housing growth targets outlined in the 2040 comprehensive plan.

The city aims to add 400 new housing units in phase 2 development to maintain measured growth. Officials said additional land will likely need to be opened for development in 2026 to provide adequate housing supply and help stabilize costs for buyers looking to move to Woodbury or change homes within the community.

The master planning process will guide infrastructure decisions including roads, trails, storm water management, sanitary sewer, water systems, and parks. The city has previously completed several successful master plans, including the South of Dale Master Plan, Gold Line Station Area Master Plan, and Urban Village Master Plan.

Next year, the city will seek community input for the 2050 comprehensive plan, which will serve as the primary land use and infrastructure planning guide through 2050. The planning work for subphase 2D will focus on diverse housing options for residents of all ages, incomes and family situations, continuing the city's commitment to maintaining approximately equal numbers of single-family detached and attached housing units.