Plymouth Approves $62M Redevelopment of Plymouth Plaza
The City of Plymouth is moving forward with a major mixed-use redevelopment at Plymouth Plaza, located at 1455 County Road 101. The $62 million project will transform the 6.5-acre site at the southwest corner of County Road 6 and County Road 101 into a new housing and commercial hub.
What Is Being Built in Plymouth?
The redevelopment plan includes:
• A four-story apartment building with 195 units
• 20% of units affordable at 60% of Area Median Income
• A new commercial building at the corner
• Partial preservation of the existing retail structure
• Underground and surface parking
Plymouth Plaza currently contains about 65,000 square feet of commercial space dating back to 1989. According to city documents, portions of the site are considered functionally obsolete and no longer aligned with modern market demands.
Why TIF Was Approved
The Plymouth City Council approved a $4.76 million, 20-year Tax Increment Financing district to help close the financial gap. Advisors from Ehlers Inc. stated the project would not reasonably proceed without public assistance due to high interest rates and construction costs.
Over the life of the TIF district, the project is projected to generate nearly $19.7 million in TIF revenue plus interest. A formal development agreement is still being negotiated.
What This Means for Plymouth and the West Metro
This site sits in a strong commercial corridor surrounded by established single-family neighborhoods. Adding 195 new apartments, including workforce-level affordable housing, increases density in a location already supported by retail and infrastructure.
From a real estate perspective, projects like this can:
• Refresh aging retail corridors
• Increase nearby property values if executed well
• Add rental options for young professionals and downsizing residents
• Support local businesses with built-in foot traffic
Construction on the commercial portion could begin in early 2026.
If you live in Plymouth, Maple Grove, Wayzata, or the broader west metro, this is the type of redevelopment that can subtly reshape your local housing market over time.
If you want insight into how projects like this impact home values in your neighborhood, reach out. I track these developments closely across the Twin Cities and help clients position themselves ahead of market shifts.
