The Forest Lake Planning Commission on Monday discussed land‑use options for the 123‑acre Headwaters property and gave staff directional support to pursue a request‑for‑proposals (RFP) to find a development partner.

Staff briefed the commission on the property’s history: it was included in an earlier planned unit development and later rezoned for business‑park uses — office, medical and light industrial — with a past effort to attract a data center that has not materialized. City staff and the Economic Development Authority (EDA) are now proposing an RFP process to solicit private partners and ideas for developing the site while retaining the majority of the land for job‑center uses.

The EDA and staff presented options that retain most of the property for business‑park uses, but that would allow a small amount of neighborhood‑serving retail closer to Highway 61 and Headwaters Parkway and consider residential uses — such as townhomes — along Fenway Avenue as a buffer between industrial or office uses and adjacent single‑family neighborhoods.

Commissioners generally endorsed the EDA’s plan to solicit market input via an RFP. Comments emphasized the need for market realism and for a partner that can present credible proposals rather than assuming the city should revert the property to residential. Several commissioners said the site’s limited visibility and the lack of immediate interstate access make large‑scale retail or industrial uses a harder sell; others suggested that a unique destination or a well‑structured public‑private partnership could succeed.

Staff said a regional consortium of nearby cities — Columbus, Hugo, Lino Lakes and Forest Lake — along with Anoka and Washington counties, is coordinating design work on Elm Crest/Elmcrest‑area connections and that MnDOT will not pursue an interchange without local roadway improvements built first. Staff cautioned that an interchange location is not yet agreed among jurisdictions and that MnDOT’s long‑range plans do not currently include an interchange at this site.

Commissioners suggested including small service retail near Headwaters Parkway to "bookend" similar uses on the north side of the parkway and to improve neighborhood walkability; some recommended that multi‑family residential along Fenway could act as a transition to business park uses. Several commissioners supported issuing the RFP and performing market research before committing to zoning or comp‑plan changes.

No formal vote was taken; staff said the EDA will draft the RFP and return with a proposed timeline. Staff estimated the RFP work could be active in early to mid‑2026 and invited commissioners to volunteer to assist with proposal reviews when the scope and committee are defined.