By Danielle Dullinger
Murphy News Service
The University of Minnesota’s UMore Park is trudging forward with plans to develop the mass of land, but some members of the state university Board of Regents are questioning the real value of this property.
Rosemount’s City Council approved plans in October to move forward to hire a master developer or the land, located 25 miles southeast of the Twin Cities in Dakota County. Regents also met in October to discuss the status of UMore Park developments, and the value of the land to the University was debated.
Initial plans to develop the 5,000-acre plot of land were approved by the Board of Regents in 2008, UMore Park’s website said. The concept master plan now includes plans for a sustainable community of 20,000-30,000 people to be developed over the next 25-30 years, the site said. The community would be a mix of residential, retail, commercial and industrial use.
The land is being used by the University for agricultural research, as well as by Dakota Aggregates to mine the southwestern part of the property, which is rich in gravel, Michael O’Keefe said. O’Keefe is the chair of the board of governors for UMore Park LLC.
Regents Vice Chair Dean Johnson brought up concerns about the funds being produced by the mining project.
Richard Pfutzenreuter, chief financial officer at the University, estimates the mining will cost the University $10.2 million through the end of the fiscal year in June 2014. The revenues to date are about $8.2 million, he said.
“Right now the project has not fully paid for itself,” Pfutzenreuter said in the meeting. “Going forward between mining and development will make this venture a positive cash flow. So far, we’re just a tad short.”
Regent David Larson expressed concerns about the cash flow of UMore Park.
“This is extremely expensive land to conduct agricultural research on,” Larson said in the meeting, “And we should be extremely thoughtful as to what the alternatives are.”
Regent Laura Brod is concerned about the University’s role in developing UMore Park.
“I recognize that a lot of the decisions predate this board,” Brod said.
Brod shared her worries about staying focused on the University’s mission and “whether the University ought to be in the development business.”
“I worry about being in the development business and competing against the private sector,” she said.
Regent Clyde Allen expressed his support of the development of the land and its educational capabilities.
“We could try to take a big step forward in how communities develop,” Allen said. “How do you build a whole community from scratch?”
Teaching students and learning along the way how to take a large plot of land and put it together relates directly to the University’s mission, Allen said.
While some regents express concern, the plan is still on track for development in the future.
“We’re setting up a plan for a master developer,” Regent John Frobenius said. “We will finally produce some positive cash flow.”
Danielle Dullinger is studying journalism at the University of Minnesota.