Oakdale Planning Commission Greenlights Residential Development Amid Concerns Over Infrastructure and Zoning

The Oakdale Planning Commission held a meeting on July 10, 2025, where they approved recommendations for a plan amendment and a planned unit development (PUD) amendment for a significant residential project. The development, located on a 12.5-acre parcel at 305 and High Point Drive North, proposes to transform the site from a business campus to high-density residential, accommodating up to 220 multifamily units. Despite unanimous approval, the meeting was marked by discussions on infrastructure capacity, zoning changes, and the broader implications for the community.

A key topic of the meeting was the proposed amendments to the comprehensive plan and the PUD, designed to repurpose the land adjacent to the Willoughbrook neighborhood from business to residential use. The development plan includes both apartment buildings and townhomes, all at market rate, with no income restrictions. The transition from a business campus to a residential area is intended to address a lack of interest in office developments over the past five years, as stated by the applicant. The area, currently suited for business, was argued to be more appropriate for residential use, especially given the traffic patterns on nearby Highway 36.

The development proposal sparked concerns from commission members regarding infrastructure, particularly the adequacy of water pressure and potential traffic issues, which had not been formally studied. Although a sewer study confirmed that the existing infrastructure could handle the additional residential load, the piecemeal processing of the project without a comprehensive site plan and traffic impact analysis was a point of contention.

The staff report emphasized that the amendments alone would not permit construction, as additional approvals for platting and site plans would be necessary. Several conditions for approval were recommended, including a setback requirement of 100 feet from the southern lot line and compliance with the city’s zoning standards and design codes. These stipulations underscore the commission’s intent to maintain high-quality development standards and to mitigate potential negative impacts on the surrounding community.

A representative from the development team, Scott Peterson, expressed enthusiasm about the project and a commitment to addressing the commission’s concerns.

The meeting then proceeded to discuss the Oakdale Marketplace Apartments Phase 2, where the developer sought approval for a PUD amendment, as well as preliminary and final plats and a site plan. This project, located within the Oakdale Marketplace PUD near Target, proposes a four-story building with 160 multifamily units and a commercial building ranging from 8,000 to 12,000 square feet. The horizontal mixed-use configuration, which separates commercial and residential spaces into distinct buildings, required a PUD amendment due to prior city council preferences for vertical mixed-use configurations.

City staff noted that horizontal mixed-use developments can offer similar benefits to vertical configurations, such as shared parking and improved accessibility to commercial amenities. Adjustments to the site plan included enhancing pedestrian connections and reducing curb cuts for safety. Despite the absence of secured tenants for the commercial space, the developer, Val Dut, expressed optimism about the project’s potential and acknowledged the challenges posed by existing covenants with Target, which restrict certain business types.

During public comments, a resident of the nearby Anna’s Grove neighborhood expressed support for the development, emphasizing a community desire for increased retail options to reduce reliance on neighboring areas like Woodbury. The resident also voiced a preference for commercial over residential development, citing concerns about the impact of future residents on the community.

The commission unanimously recommended approval of the PUD amendment, preliminary plat, final plat, and site plan for the Oakdale Marketplace Apartments Phase 2, signaling strong support for the project’s progression. The meeting concluded with updates on staff changes, recent code updates, and upcoming community events.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Mayor:
Kevin Zabel
Planning Board Officials:
Dallas Pierson, Tom Willenbring, Christopher Campbell, Yaya Diatta, Janet Hagen, Mike McCauley, Beau Wilson, Susan Willenbring (Council Liaison), Luke McClanahan (City Planner)

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