Johnson Bros. Liquor Co. backs out of BCBS site redevelopment in Eagan
Johnson Brothers Liquor Co. withdrew its application for redevelopment of the former Blue Cross Blue Shield site in Eagan, the city announced Monday.
The third-largest wine distributor in the nation, Johnson Brothers began eyeing the 55-acre campus last year to be redeveloped as its new corporate headquarters and warehouse distribution center, but ultimately decided it wasn’t the best fit.
“We have determined that the Blue Cross Blue Shield site in Eagan is not the best fit to meet the anticipated future needs of our company. We will continue to explore other options around the metro, including the possibility of remaining in St. Paul,” the company said in a statement provided Tuesday.
The Blue Cross Blue Shield campus at 3535 Blue Cross Road became available last year as many of the insurance company’s roughly 3,000 employees opted for the hybrid work model.
The 55-acre parcel caught the attention of the liquor company, which said it was outgrowing its current distribution facility at 1999 Shepard Road, near Crosby Farm Regional Park in St. Paul.
The proposed plan for the new Johnson Brothers headquarters in Eagan included a six-story, 460,000-square-foot warehouse distribution facility with a potential future expansion space spanning another 230,000 square feet.
The Eagan City Council voted in favor of a land-use amendment in December, which would have sent the proposal to the Metropolitan Council for review since it would have required a change to the city’s comprehensive plan. But the plan drew opposition from neighbors.
The city of St. Paul is hoping for another chance to keep Johnson Brothers in city limits.
“We would love for Johnson Brothers to stay in St. Paul and are working to determine possible options for supporting solutions to their space needs,” said Nicolle Goodman, director of Planning and Economic Development for St. Paul, in a statement Tuesday.
Pushback from Eagan residents
Eagan Mayor Mike Maguire said at the Dec. 12 city council meeting that the council had received 133 pages of email correspondence regarding the proposal.
Dozens of residents spoke out at the meeting with concerns about property values, outdoor recreation spaces, trees and wildlife.
John Wells, an Eagan resident of more than 30 years who lives less than two miles from the former Blue Cross Blue Shield site, said he was “delighted” to learn Johnson Brothers had withdrawn its application.
“Why is Eagan just reacting to the private sector? What is the best use for this prized piece of land?” Wells said Tuesday. “Our tax base should not be the main driver for how we design Eagan for the next 150 years.”
Residents of Eagan organized a petition that was sent to city officials last December that read, “Placement of a warehouse immediately adjacent to our residences and park is unwanted and undesirable. … This is largely because we don’t believe that heavy truck traffic, warehouses or liquor distribution centers belong embedded within our residential neighborhoods.”
The petition also noted that some residents objected to a liquor distribution warehouse near the neighborhood’s soccer fields where children regularly play.
“For the vast majority of us, our home is our largest single asset. This rezoning request will only negatively affect our home values,” the petition read.
Another Eagan site considered by Johnson Brothers was the former Thomson Reuters campus, which was mostly vacated last year due to many of its employees preferring the hybrid work model. At nearly 180 acres, the site exceeded the liquor company’s needs and was spoken for last month by Minneapolis-based developer Ryan Cos.
“We know the path for redevelopment on large-scale properties is rarely a straight one,” said Maguire in a statement Monday. “Just as we have in the past with the successful development of properties such as Viking Lakes, Central Park Commons, and the Twin Cities Premium Outlet Mall, we will be patient, stay engaged, and learn more as proposals come in,” Maguire said.
