Crews have begun demolition of the former Herberger’s department store at Rosedale Center, marking progress of an overall $200 million expansion to revamp the Roseville mall into a mixed-use, urban-style regional center.
In late 2019, Rosedale announced concept plans for the south-side expansion — including market-rate apartments and other housing, a hotel and grocery store — of the mall located off Minnesota 36 and Fairview Avenue.
Rosedale Center general manager Lisa Crain said this week the teardown of the former Herberger’s, which closed in August 2018, “really signifies the new beginnings for us in retail as a whole” and will help mall officials better define how the southern portion of the property will take shape.
“We’re extremely excited to get the building down and start our new vision, what retail in Rosedale is going to be for the next 15 to 20 years,” she said. “So I think it’s very monumental that this is happening. People can see it, they know there’s going to be change.”
Herberger’s opened a Rosedale store in October 1999, occupying the former Montgomery Ward space. In late 2018, Herbergers’ parent company, Bon-Ton Inc., was bought out of bankruptcy by liquidators and eventually closed the six Herberger’s locations in the Twin Cities.
In recent years, the former department store space at Rosedale was transformed into a haunted house, run by the Haunted Basement.
In early 2020, Woodbury-based Kowalski’s Markets signed a long-term lease for a roughly 30,000-square-foot store to be built on the mall’s south side. Store plans are still in the works, Crain said, but the Herberger’s demolition “will allow us to really start defining what we’re trying to do with that south portion of the center.”
Although the pandemic caused mall officials to reconfigure plans, the previously released additions to the mall — and more — remain part of the vision, Crain said.
“We’re looking at everything,” she said. “We’re in a great position because of the real estate we have on the south side along Highway 36.”
Redevelopment of the center will be done in phases and the plan closely aligns with the city of Roseville’s comprehensive plan, Crain said. Mall officials are also working closely with city staff to secure a conditional-use permit for the new housing, which besides market-rate could include could include senior or active-living units.
STORES REPLACE PARKING
Over on the mall’s east side, construction is moving along on two buildings off Fairview Avenue. Raising Cane’s will occupy one, while Aspen Dental and Visionworks will make up the other. Caribou Coffee and PNC Bank recently opened up in a third building.
To make room for the three buildings, Rosedale owner Morgan Stanley Real Estate Advisor Inc. bought 2.5 acres of Macy’s parking lot space in February 2020.
Crain said building retail in underutilized parking areas along ring roads continues “to be the really hot thing” with shopping centers across the country.
Rosedale, which opened in 1969 as one of the Twin Cities’ famed “Dales” shopping centers, says that it attracts more than 14 million visitors annually. It is the largest employer and taxpayer in Roseville, paying nearly $5 million in property taxes annually. The mall reports it generates more than $12 million in sales taxes from an estimated $160 million in yearly sales.