Several Have Interest in Northeast Development

By Edie Grossfield, Post-Bulletin, Rochester, Minn.

Jul. 19–Real estate developer Dick Argue believes a largely undeveloped, wooded, hilly area of northeast Rochester could become “the new southwest Rochester.”

With his upscale Stonehedge and Morris Hills residential developments under way, Argue said several of his buyers initially looked at upscale neighborhoods in southwest Rochester.

Argue is involved in development partnerships involving more than 200 acres of land southeast of 48th Street Northeast and North Broadway.

One of his projects, however, is on the north side of 48th Street. The Hadley Creek project will renovate the facilities at Hawthorne Hills Golf Learning Center and surround it with about 250 single-family homes.

Argue expects work on the nine-hole executive golf course and practice facilities to begin within two weeks and be completed by September 2008. However, the course would not be playable until the summer of 2009, said Wade DuMond, vice president of development for Argue’s home-building company, Babcock Builders.

The homes surrounding the golf course will range from about $250,000 to $600,000, Argue said.

His Stonehedge and Morris Hills developments offer homes in that price range as well. About 150 have been built in Stonehedge, with about 85 lots remaining

In his 66-acre Morris Hills project, Argue is planning for about 145 houses. The lots will sell for between $57,000 and $110,000 each, he said.

He also is working on two other development proposals with other business partners on 52 acres northwest of Stonehedge and 78 acres southeast of Stonehedge. Combined, these projects would provide another 200 lots for single-family homes.

But Argue isn’t the only developer heading up plans in this northeast area.

Gary Schueller, a local real estate salesman and developer, has a project under way on 86 acres in the same northeast area. Schueller has 18 lots at the top of a high ridge for sale, and construction has begun on the first model.

These homes will be priced between $650,000 and $1.5 million, he said.

In addition, Rick Murray of Residential Development Inc. of Eden Prairie, Minn., is planning for up to 52 lots on a rocky ridge bordering the northeast side of Argue’s Morris Hills project. This Morris Hills North development will have homes starting in the low $300,000s, Murray said.

Dependent on when the city extends sewer services down 48th Street Northeast and a water main across the area, at least three other large residential proposals will come into play.–Odland Oak Crest LLC is a development group with about 80 acres. Argue is involved with plans for about half of the property, where 75 single-family lots would be developed. It is not known what will happen with the other half, Argue said.

–The Bakken property has about 100 acres also in the area. Landowner David Bakken is not yet sure how many homes will be built on the property. He said he is discussing plans with Argue.

–A group of landowners calling itself 36th Avenue Properties has about 97 acres. One of the landowners, Thomas Gommels, said the group probably will sell the land to a developer. It is likely that about 80 homes will be built on the combined property, he said.

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Copyright (c) 2007, Post-Bulletin, Rochester, Minn.

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