The bypass, now known as Highway 312, will get a name change toHighway 212 when it is fully extended, running from Eden Prairie toChaska, according to Kraus VP of leasing Paul Sevenich. He says thecompany was able to acquire 10 acres at the empty exit to build thefirst new development, though it has been limited in the storesize. The project will feature about 60,000 sf of retail, with therest being second-floor office. "The city is not allowing any storeto be greater than 10,000 sf, they don't want big box stores,"Sevenich tells GlobeSt.com. Construction won't start until summer,with a spring 2009 opening, right about the time a 1,200 Park andRide opens nearby, he says.

The building, along Highway 101, will likely cost about $15million to construct, he says. The company is seeking nationalretailers, Sevenich says, and will have leases in the low-20s, hesays. "We're talking to one tenant right now, and have a purchaseagreement," Sevenich says. "The demographics are terrific, we'relooking at 70,000 cars a day."

The company recently completed Market Street Station here, asimilar, 50,000-sf office and retail project. This project is atHighway Five and Market Street in the city's Downtown.