Duluth selects preferred development proposal for Lester Park Golf Course

Oppidan's conceptual housing development plan would cater to senior citizens

DULUTH — A selection committee has recommended the city move ahead to explore an emerging plan to redevelop a 37-acre lower portion of the now-shuttered 268-acre Lester Park Golf Course into housing.

Oppidan was one of two developers that responded to the Duluth Economic Development Authority’s recent request for proposals to build housing on the site of the former municipal golf course. The other respondent was Inland Development Partners, and while both proposals were solid, DEDA Director Chad Ronchetti said Oppidan did a better job of including the desired percentage of affordable housing as part of its total envisioned residential mix. DEDA had asked that at least 80 units of affordable housing be part of any development on the site.

Oppidan includes assisted living and 55-plus active senior housing, as well as some co-op housing along the lines of the Zvago; Lake Superior development next to Ecumen, according to Ronchetti, who noted the strong demand for housing in that sector.

Oppidan, headquartered in Excelsior, Minnesota, says in its proposal that the firm has “developed more than 580 projects valued at more than $4.9 billion and spanning 29.3 million square feet throughout 41 states and parts of Canada.” Ronchetti said one of the benefits of better filling that market niche is that it will likely free up a number of local single-family homes inthe $200,000-$300,000 price range, where there is a shortage of supply.

After reviewing both proposals, members of the selection committee unanimously selected Oppidan’s, setting the stage for further talks. Although no financial terms have been addressed and no development agreement has been negotiated, the RFP selection advantageously positions Oppidan to make a play for the property and potentially put together a predevelopment agreement.

DEDA’s request for proposal informed interested developers that the land would be sold at no less than its independently appraised market value of $50,048 an acre. That would translate into a minimum price of about $1.85 million for the 37-acre parcel being offered.

Any proceeds from a potential sale of Lester course property have been earmarked to help cover the cost of restoring Enger Park Golf Course, the city’s only remaining municipal golf asset.

Much work remains to be done before any deal is hammered out and ready for consideration. But DEDA’s request for proposal says: “The city’s intent is to select one developer and enter into an exclusive development agreement to create and implement a plan for development on the property.”

Ryan Grover, an Oppidan representative, expressed excitement over the opportunity to potentially develop a portion of the Lester Park Golf Course property.

“Our company has been around for about 32 years now, and our founder, Joe Ryan, he’s an Iron Range guy. He was born and raised in Hibbing. So, northern Minnesota is near and dear to his heart,” Grover said.

Oppidan already has made a number of investments in the region, including a senior housing development in Grand Rapids and another one now under construction in Hermantown at the corner of Maple Grove and Lavaque roads.

“We feel this is an amazing site, and it’s going to be a huge success. And it’s going to help fill a need that we see,” Grover said.

He said one of the draws of the property is its ready connection with the nearby trail network in Lester Park.

“We really want to design it so there’s a seamless transition from what it is now to what we’re planning to build, and we want to make it extremely walkable and tailored to active seniors and all our other residents, with a lot of green space,” Grover said.

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