Eden Prairie is at the center of a heated development debate as the city and Danfoss, a global engineering firm, clash over the future of one of the largest redevelopment opportunities in town.
Danfoss plans to sell its 57-acre industrial campus near State Highway 5 and Mitchell Road, a site with decades of history that once housed Char-Lynn Co. and later Eaton Hydraulics. Now, with the plant closing by the end of 2025—and 110 employees being laid off—the company is looking to move on. But Eden Prairie wants to do more than just fill a vacancy; they want to rethink the land entirely.
City Pushes for Mixed-Use Vision
The city is proposing a comprehensive plan amendment that would shift the site’s zoning from industrial to mixed-use, envisioning a blend of residential units, retail space, and office development. The Planning Commission voted 7-1 to support the change, which still requires City Council and Metropolitan Council approval. According to city planning documents, the 58-acre property could support:
1,889 residential units
95,000+ square feet of retail or commercial
43,000+ square feet of office space
Julie Klima, Eden Prairie’s community development director, said the city sees this as a once-in-a-generation opportunity to shape the future around housing needs, transit access, and quality of life amenities. The site is near the SouthWest Station transit hub, making it ideal for high-density, walkable development.
Danfoss Pushes Back
But Danfoss and its real estate representatives are pushing back hard. They say the city’s plan will scare off industrial buyers and reduce the value of the property by millions. Danfoss wants to preserve the ability for a future owner to expand industrial operations, particularly on the northern section of the site. “The amendment would be a significant risk,” said Dave Neuberger, Danfoss’ head of real estate in the Americas.
Broker Nate Erickson of Transwestern, who is representing Danfoss, added that forcing a mixed-use designation could delay redevelopment by years and limit buyer interest. He confirmed the property is under contract, widely believed to be with United Properties.
What’s Next?
United Properties has floated a concept plan that tries to blend both visions—repurposing the main plant, adding another industrial facility, and incorporating senior housing, multifamily units, and some ground-floor retail. But under the city’s proposed guide plan, any new industrial construction would be a "nonstarter."
As Eden Prairie’s City Council prepares to vote on June 17, the choice is clear but complicated: prioritize short-term marketability or commit to a long-term community vision. Either way, the decision will shape the future of one of Eden Prairie’s last remaining large parcels for decades to come.
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