ModernWell, the women-centered coworking space founded in Minneapolis, is expanding to downtown Wayzata with a second location set to open later this year—bringing fresh energy to a development that has long struggled to find its rhythm.
According to an article from the Minneapolis/St. Paul Business Journal, ModernWell will occupy 2,500 square feet on the ground floor of The Hotel Landing at 985 Lake Street East, part of The Promenade of Wayzata, a mixed-use development by Presbyterian Homes. The space, which has sat vacant for nearly seven years, will soon feature open coworking areas, private offices, meeting rooms, phone booths, a kitchenette, and a patio with views of Wayzata Bay. Members will also enjoy complimentary underground parking.
The Promenade—built on the site of the former Bay Center mall—has faced leasing challenges since its inception. But with ModernWell signing on and other recent activity nearby, there appears to be renewed momentum in activating the ground-floor commercial spaces and revitalizing this central stretch of Lake Street.
Julie Burton, ModernWell’s founder and a longtime advocate for women in business and wellness, launched the original location in 2018 in Minneapolis’ Bryn Mawr neighborhood. She created ModernWell to be “a bright, warm, comfortable space where members are inspired to unleash their creativity and empowered to achieve personal and professional success,” according to the company’s website.
Unlike the more residential setting of its original home, the new Wayzata outpost will offer a highly walkable environment—with restaurants, boutiques, fitness studios, and the lake just steps away.
The lease was facilitated by Emily Massie of Colliers real estate, who secured the deal at a below-market rate. Burton and her team also hold first rights to an additional 10,000 square feet within the same building should the coworking space reach capacity.
ModernWell’s arrival not only marks a new chapter for professional women in Wayzata—it may also hint at a broader comeback for The Promenade, and a more vibrant, connected downtown.
The Wayzata City Council voted 4-1 to instruct staff to draft a resolution for the denial of an application submitted by Presbyterian Homes on Tuesday, January 9th.
The proposal sought to convert the former Lunds & Byerly’s retail space at the Promenade’s Superior Block into loft-style condominiums.
City Staff is expected to present findings of fact and a final resolution for denial in the future.
Despite a 4-3 recommendation for approval by the Planning Commission on November 6, the proposal faced opposition during the City Council vote.
Mill Street in Wayzata.
Presbyterian Homes and Services, the property owner, aimed to breathe new life into the 35,374 square feet of vacant retail space, formerly Lunds & Byerly’s Kitchen, with plans for 12 loft-style residential condo units.
The retail space has been dormant for approximately 6.5 years.
A report by City Staff highlighted challenges within the retail portion of the Promenade project, revealing a 38% vacancy rate, with 8,700 square feet along Lake Street remaining vacant since construction.
The Promenade Loft Condos concept by Chris Palkowitsch – BKV Architects.
Economic hardship affecting the applicant due to operating costs traditionally borne by tenants, was cited at the meeting.
Originally approved in 2007 as part of the Wayzata Bay Center redevelopment, the Promenade’s Planned Unit Development (PUD) has undergone changes reflecting shifts in retail dynamics over the past fifteen years.
Presbyterian Homes emphasized the impact of online shopping and pandemic-related strains on retailers, prompting a reevaluation of the use of brick-and-mortar spaces.
Challenges in leasing existing retail spaces were attributed to the evolving nature of retail, along with visibility, foot traffic, and elevation concerns.
During the City Council meeting, Mayor Johanna Mouton voiced concerns about the persistent vacancy, urging collaboration with Presbyterian Homes.
The mayor expressed disappointment in the perceived lack of engagement, calling for a solution and suggesting a more active dialogue, “We have been concerned about the vacancy. To say there were tens of thousands of hours spent on this (redevelopment) project at a City level, a community level, and by Presbyterian Homes is an understatement. For years we have received feedback, asking what is going on over at Folkestone? It’s vacant, it’s constantly vacant.”
Mouton continued, “We were so concerned… (that we asked) what is going on, how can we work with Presbyterian Homes to fill this space, Staff please reach out to them… let’s come to the table, lets figure out a solution, what does that look like… crickets, crickets… it’s a bit of a poke in the eye and it doesn’t make us look good.”
Former Lunds & Byerlys Kitchen space has sat empty for 6.5 years.
Mouton also indicated how positive the relationship with Presbyterian Homes representatives had been during the initial development, “…John Merhkens… he was a wonderful advocate throughout the construction process, when issues would arise he came to the table always, communicative, responsive.”
Lisa Albain of Presbyterian Homes stated in response, “First of all, I’m not passing the buck, I apologize for the experience you all have had, I was not a part of the conceptual development of Folkestone, nor was I a part of the leasing efforts for the retail space up until about nine months ago. The people who were a part of Presbyterian Homes, and Folkestone that you had relationships with have retired and are no longer with the company any more. We are doing our very best to locate files, to understand history, to really right the ship and I think we have done a very good job in the last year, it’s changing.”
One of the retailers the Council and Presbyterian Homes celebrated together in the meeting was the placement of Red Cow Gourmet Burgers near the Hotel Landing.
However, questions were raised about the information presented to the Planning Commission by Council Member Molly MacDonald, “I’ve been disappointed with what you guys have shown up with in terms of data to the planning commission meeting, there was a little bit more context in this packet, but to say we have contacted everyone, we have reached out to all these people, you said you have been engaged, like what restauranteurs did you engage with? I feel like there isn’t any hard data showing what you have actually done, and I have this being juxtaposed with a developer at 50th & France who had been courting my retail business in Wayzata at the same time I was trying to get ahold of you guys, and I kept thinking, why can’t they hire this guy who calls me once every six months, offers deals, and now that space is vibrant, active, and fully leased to my knowledge.”
Presbyterian Homes highlighted unique challenges posed by the deep and extensive retail space, making it difficult to attract boutique retailers.
The site’s depth and access issues were emphasized, with concerns about visibility, walkability, and the absence of credit-worthy tenants willing to lease the space.
Presbyterian Homes attorney Christine Eid stated, “There are objective challenges with this space that won’t be resolved, and at this point in time it’s costing the owner over $300,000 in operating expense losses, and requiring this to be commercial and not allowing some flexibility, it removes the ability of the owner to actually make it economically viable.”
The east end of Mill street is the only place where the retail is flush with the street, around the rest of the perimeter one has to walk up many stairs, and a loading dock on the northwest side of the property also creates access issues.
The Promenade mixed use project has approximately 111,000 feet of retail and commercial space in all the blocks, and the conversion to residential condos would be an impact of approximately 24% of that commercial space; and 2% of the overall Promenade project which exceeds over one million feet including condos, retail, the hotel, senior living etc.
The potential denial of the proposal underscores ongoing challenges in leasing efforts at the Promenade, stay tuned for more coverage.
Presbyterian Homes has presented revised plans to Wayzata city officials, proposing amendments to the general plan that would enable the initiation of construction on the initial two structures of the Promenade of Wayzata by December 2011.
These buildings constitute the senior housing facet of the project, known as Folkestone.
Concurrently, negotiations are underway regarding the final financing arrangement for the entire venture.
The modified general plan, currently under city consideration, outlines the construction of the Promenade in three phases.
The inaugural phase, designated as Phase 1a and scheduled to commence by the year’s end, encompasses the construction of two independent senior housing units, Terrace East and Terrace West, alongside sections designed for higher levels of care.
The target for completion and occupancy is set for the spring of 2013.
In the amended plan, a subsequent construction phase, Phase 1b, anticipates breaking ground for the third out of the five planned buildings in late 2012.
Originally identified as the West Block and featuring a blend of retail and all-age condominiums, this building is now proposed to be transformed into 55-plus independent living senior apartments due to current market conditions. Occupancy for the West Block is projected for the spring of 2014.
John Mehrkens, Vice President Development, Senior Housing Partners, explained the rationale behind seeking amendments, stating, “There are three primary reasons why we believe the amended general plan is much better for the total project. First is the continued weakness in the condominium market both in the Twin Cities and the Wayzata real estate market area. Currently, there are over 1,700 condominiums for sale or in foreclosure in the Twin Cities metro area. As a result, it may be several years before there is sufficient demand or available financing for new condo construction.”
Mehrkens continued, “Secondly, the response to the Senior Housing has been overwhelming, demonstrating the need and demand for this type of housing in Wayzata. All 91 units in the first Folkestone building, Terrace West, have already been reserved, and reservations for the second building will be taken beginning in a few weeks. The final reason for the general plan amendment is it allows for a major retail component of the plan to be built as soon as possible.”
He emphasized, “There will be 46,000 square feet of retail space in the West Block, and by converting the housing component to senior housing, it will allow us to get this important anchor retail space occupied years earlier than would be the case with the original plan. This, combined with the retail on the first floor of the Superior Block, represents nearly 60% of the total retail planned for the project.”
Mehrkens clarified that the commitment to the original architecture design and character of the West Block remains intact; it will simply be designated for individuals 55 or older.
The amended general plan also emphasizes the importance of implementing the Park Plaza green space as part of Phase 1b.
The next stages of the project, namely Phase 2 (Plaza Block with retail and all-age condominiums) and the East Block (retail, hotel, and office), will initiate construction as additional retail space is absorbed and condominium market demand improves.
With over 40 different floor plans and designs available in eight distinct types of units, the unique design of the Folkestone buildings stands out.
For further information on the units, floor plans, and living at Folkestone, interested parties can visit Folkestone’s official website.
Dena Kuenzel, Housing Advisor, expressed enthusiasm about the Wayzata community’s response to Folkestone, stating, “The reservation response to Folkestone is one of the strongest we have ever seen. People are particularly excited about the location in the heart of Wayzata and the unique floor plans and amenities that will be incorporated in Folkestone.”
As indicated in a recent memorandum to the City of Wayzata, Presbyterian Homes is seeking significant alterations to the Wayzata Bay Center Redevelopment Agreement.
The proposed changes include adjustments to the number of blocks to be developed, an extended timeline for completion, and modifications to the Tax Increment Financing (TIF) District.
Here’s a breakdown of the key points:
Block Development: Presbyterian Homes is now advocating for the construction of only one block initially, deviating from the initial agreement that outlined three blocks.
Alternatively, they express a willingness to settle for two blocks dedicated to senior housing.
Timeline Extension: The proposed changes also seek to extend the completion timeline for Phase I to 2014 (originally three blocks, now one or two blocks of senior housing) and Phase II to 2016 for the remaining project.
This would provide more flexibility in the construction schedule.
TIF District Restart: Presbyterian Homes aims to restart the Tax Increment Financing (TIF) District in 2011 or 2012, resetting the clock for maximum collection over 26 years.
The proposal includes a provision for deferring TIF District receipts for four years, unless an earlier collection is requested by the Redeveloper.
Sale of Remaining Blocks: The development plan indicates that Presbyterian Homes intends to sell the remaining blocks, either directly or through a different developer such as Opus.
The City Council is reportedly considering contingency plans for the appearance of demolished blocks in case of a delay in finding a new developer.
Memo Summary: A memorandum from Jay R. Lindgren of Dorsey & Whitney outlines the terms of the proposed Second Amendment to the Wayzata Bay Center Redevelopment Agreement.
Some of the key points in the memo include demolition timing, acknowledgment of the City’s purchase of the DNR Parcel, a First Offer, First Refusal (FOFR) Agreement, adjustments to the Maximum Redeveloper Amount, and modifications to timelines for improvements completion.
Other Amendments: The proposed amendment includes changes to the timing and sequence of block construction, adjustments to the TIF District, acknowledgment of Gas Station Parcel purchase, satisfaction of affordable housing requirements, and park dedication requirements.
Deadline Extensions: Notably, the proposed amendment grants the Mayor the authority to postpone any deadline in the Agreement, including those introduced by the Amendment, for up to 90 days, provided the Redeveloper agrees in writing to each extension.
This proposed amendment is currently under consideration by the City Council, and stakeholders are encouraged to provide comments and feedback.
The agreement between Presbyterian Homes and the Original Pancake House was officially concluded on April 8, 2011.
This agreement marks a pivotal step toward advancing plans for the redevelopment of the Wayzata Bay Center, encompassing senior housing, retail spaces, and a hotel.
George Daniels enjoys a cup of coffee at the Original Pancake House in Wayzata. The restaurant is scheduled to close on August 15, 2011. Photo Dan Gustafson.
As part of the transition, the Pancake House will remain operational until August 15, 2011.
Meanwhile, the Saviks are actively searching for a new location to relocate their business.
John Mehrkens, Vice President of Development at Presbyterian Homes, expressed earlier this year his anticipation to commence the demolition of the site during the upcoming summer.
The departure of the Original Pancake House contributes to the realization of the broader vision for the Bay Center’s transformation into a multifaceted development.
The planned redevelopment aims to bring senior housing, retail establishments, and a hotel to the heart of Wayzata.
Presbyterian Homes vice president of development John Mehrkens indicated earlier this year that he hopes to begin demolition of the site this summer.
It was also announced that the senior housing component of the project will be named Folkestone.
When asked to comment on the names, Deb Black, Executive Director of Marketing for Presbyterian Homes and Services, commented, “We feel that the project name, The Promenade, fits the design and goals we have for the development.”
The project was laid out to have wide sidewalks and porticos, fountains and public art spaces, and substantial green space that’s pedestrian friendly and encourages people to walk through the development and connect with the rest of Wayzata and the beautiful waterfront.
Wayzata is known as the Gateway to Lake Minnetonka that people love for its village feel and distinctive shopping and dining, and we feel both the design and Promenade name reinforce what makes Wayzata such a special community.
Though the pronunciation is different, the name for the senior housing project was inspired by the seaside village of Folkestone in England.
There, Folkestone is a thriving resort area known for its broad promenades, prominent green spaces and breathtaking views.
Also announced were the dimensions and types of apartment homes that will be included in the Folkestone senior living community.
Because of the unique design of the buildings, there will be a wide variety of apartment configurations.
There will be over 40 distinctive floor plans, so very few will have the same layout and size.
Residents will also have four different types of apartments to choose from, allowing them to select the size and type of home that fits their needs and lifestyle.
The following four choices will be offered to residents:
1 Bedroom 700 – 940 Sq. Ft. 1 Bedroom Plus Sunroom or Den 970 – 1,100 Sq. Ft. 2 Bedroom 1,190 – 1,345 Sq. Ft. 2 Bedroom Plus Sunroom or Den 1,350 – 2,420 Sq. Ft.
When asked how the specific apartment options were developed for Folkestone, John Mehrkens, Vice President of Development, stated, “Our experience through the years has shown that offering a wide range of layouts and sizes is desirable in order to meet the needs of the total senior housing market. We’re really pleased that the design of the Folkestone buildings will allow many distinctive floor plans in terms of layout and size as well as the potential for the initial residents to select finishes and amenities to further customize their home. Consistent with the desires of the Wayzata community, Folkestone will also have a wide range of amenities including heated underground parking, a theater, library, spa, and fitness center with pool. Because of our beautiful setting, we’ve also included a private deck or patio with each apartment, some of which offer views of Lake Minnetonka.“
Three informational meetings will be scheduled in February at the Wayzata Country Club, for people to learn more about Folkestone, its senior apartment options, and the unique Wayzata lifestyle.
People already on the information and mailing list will be sent full details of the meetings at the end of January.
Those not already on the list who would like to attend an informational meeting, should call Dena Kuenzel, Housing Advisor, at (952) 944-5737 for more information.
People unable to attend the February meetings will be able to view a Folkestone informational recorded webinar.
Following the informational meetings, individual appointments will be set up beginning in March so that people can reserve their new senior apartment home at Folkestone.
In addition to the senior apartments in Wayzata, the Folkestone property will include assisted living, memory care and care center; information about these other housing options will be provided at a later date.
In ongoing discussions, the registered owners of the Superior Stop, Dean Vlahos and Craig Oberlander, alongside their holding company, Wayzata Circle LLC, are engaged in talks with the City of Wayzata concerning the Superior Stop gas station located on the west edge of the Wayzata Bay Center.
Recent reports indicate that the City of Wayzata is considering condemnation as a means to facilitate the sale of the property, allowing Presbyterian Homes to proceed with its redevelopment plans for Wayzata Bay Center.
Interestingly, Dean Vlahos revealed that Tom Petters had previously been involved in the ownership but resigned his shares in Wayzata Circle LLC following his arrest in early October on federal fraud charges.
Vlahos expressed his long-standing plan to transform the property into a restaurant. Wayzata.com had previously reported on the Wayzata City Council’s closed session meeting regarding the Superior Stop. Al Orson, Wayzata City Manager, noted, “The [redevelopment agreement] is set up on the basis that the city will use condemnation to acquire the gas station.”
Litigation may arise if an agreement between the City and Wayzata Circle is not reached, although neither party is currently commenting on the prospect of legal action.
Wayzata residents and community leaders recently had their first glimpse of the ambitious plans for the redevelopment of the Wayzata Bay Center, as a detailed 40-page document was submitted to the City of Wayzata.
The envisioned district comprises five buildings and a public plaza, intricately divided by sidewalks and streets. The proposed development includes:
Steel pilings will be a prerequisite for construction given that the site was previously Gleason Creek, and still has active water draining to Lake Minnetonka.
An interesting historical anecdote suggests that a rowboat was once stored beneath the Wayzata Bay Center to periodically inspect the structure.
A line of trees is planned to shield the east neighborhood, while an aggressive stormwater management system will be implemented.
One surprising element in the plans is the inclusion of an observation tower standing at an impressive 155 feet.
This unexpected addition has raised questions about its purpose and whether it could be a strategic move to secure approval for the proposed 4-story structures.
Notably, Presbyterian Homes had initially sought approval for 5 stories on two buildings, but these heights have been scaled down to 3 and 4 stories in response to community input.
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