Presbyterian Homes and Original Pancake House enter mediation on Wayzata Bay Center lease

Since the purchase of the Bay Center property and approval of the Bay Center Redevelopment plan, Presbyterian Homes has been working with all Bay Center tenants to help them relocate their businesses or to buy out their leases. Lease resolution for all but one of the tenants was completed in 2008 and 2009, with the Original Pancake House being the only remaining unresolved lease.

Presbyterian Homes’ goal has been to assist in relocating all tenants who wished to remain in the area. Efforts resulted in the relocation of the Foursome to Plymouth. Other tenants, including the Municipal Bar and Grill, Lindblom Jewelers, Bob’s Shoe Repair, Healthy Foods and Healthy Ways, Picture This Framed and Barber Bob Nash, have been relocated in the immediate Wayzata area where they can continue to serve the Wayzata community. Summit Dance, a 25-year tenant at the Bay Center, will consolidate all classes at their Plymouth studio after completing this year’s dance season in May at the Bay Center studio. Other tenants such as Kraemer’s True Value Hardware and Glaciers have chosen to simply take lease buyout funds and cease operation or concentrate their business plan in other locations.

When asked to comment on the lease negotiations and relocation, John Mehrkens, Vice President Development of Presbyterian Homes & Services, stated, “Our goal from the beginning of the Bay Center Redevelopment project has been to assist all tenants in relocating their businesses or being part of the new Bay Center redevelopment if it fit their business goals. We are very happy to have reached resolution with tenants and are pleased that so many were able to successfully relocate in the Wayzata community. We also realize how popular the Original Pancake House is and what a fixture it is in downtown Wayzata. For that reason, we have offered resolution opportunities including relocation to another site in Wayzata or a lease buyout payment. While our ongoing negotiations have not resulted in a mutually acceptable agreement, Presbyterian Homes and the Original Pancake House have agreed to non-binding mediation in the hope that it will lead to a resolution that is acceptable to both parties.” The mediation is scheduled to take place at the end of March.

At the present time, with the relocation of many original tenants, the center has several new, temporary tenants and periodic public events to maintain a viable commercial environment. April 16th will be the Bay Center’s final indoor farmers market, where a wide variety of exhibitors will feature garden products and ideas. This event will be in conjunction with the American Cancer Society’s big annual fundraising sale that runs from April 13-16 in the former Foursome Men’s Store. On May 1, the Bay Center will host the start of the Wells Fargo Lake Minnetonka Half-Marathon.

For more information on the Wayzata Bay Center Redevelopment, go to or contact John Mehrkens at (651) 631-6313.

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