Shady Oak Road Expansion Threatens Hopkins Businesses

The expansion of Shady Oak Road, a project originally intended to improve Hopkins, now threatens to kill local businesses.

“This is such a setback, I don’t know how to respond,” said Councilman Rick Brausen.

An earlier plan had a wider road that would have required the county to purchase properties along the route outright—giving businesses money, and the option, to move elsewhere in Hopkins. But under current plans, the county would only need to acquire part of the property. That would bring the road within a few feet of some Shady Oak businesses and remove essential parking—all without the money that would have helped property owners move.

The situation is bleak, said Public Works Director Steve Stadler, who added it’s doubtful any business could survive the parking loss. Any financial help the county might offer, he said, is unlikely to make up for lost business.

“It’s a tough project to sell here the way it is now,” he told the council Tuesday.

Bill Newcomb, co-owner of Syndicate Sales, offered a visual example of those conclusions Thursday. He stepped outside his shop to demonstrate how the road would approach so close to his building that cars wouldn't be able to even parallel park along the side.

“It would certainly hinder our ability to do our retail business,” he said.

While Newcomb's century-old company also sells products outside the store, the situation would be more dire for businesses that rely exclusively on walk-in customers. The building would lose substantial parking, as would , potentially crippling its ability to host large gatherings.

To compound the problem, Hopkins and Minnetonka won't get the full $9 million of so-called “community works” money earmarked at the earliest planning stages. That money could have been used to help keep businesses in Hopkins. Current plans include the possibility of $3 million available from the county, to be shared between businesses in both cities.

“The bottom line is we’re down $6 million with the same road going through the same place,” Mayor Gene Maxwell said.

The expansion of Shady Oak Road itself isn’t a surprise. Newcomb estimates it’s been talked about for 25 years. But it’s been in a holding pattern for much of that time, partly because of cost, and business owners have faced uncertainty. Newcomb has delayed installing a new façade and improving his loading docks until he knows what’s happening.

Hennepin County sought to get the project moving again by directing engineers to come up with a cheaper plan. It now aims for property acquisition to begin in 2012.

Property owners won’t necessarily be stuck with unusable land. If the current plan moves forward, those companies able to persist through the difficulties may want to buy up land from fleeing businesses for use as parking—notably the VFW, which needs to remain in Hopkins and requires a large facility, said Economic Development Director Kersten Elverum.

But there’s no guarantee those businesses forced to leave will remain in Hopkins. If they depart, their share of the tax base will leave with them.

Hopkins officials will meet with leaders in Minnetonka on May 6 to discuss their options. Maxwell, Elverum and Stadler have already met with property owners to listen to their concerns. Despite their own misgivings, council and staff are still bracing for the possibility of legal battles with residents upset about the county’s direction.

Newcomb, at least, feels he’s been treated fairly.

“No matter what, this road is going to be improved," he said. "It’s inevitable.”