There is also a new residential singlefamily subdivision of 13 lots being built on what used to be the Victoria Valley Apple Orchard on Victoria Street.
Simonson said the city expects to finally move forward with the long awaited redevelopment of the cityowned 11-acre vacant parcel at the southwest quadrant of I-694 and Rice Street, that was once the location of the county public works maintenance operations. The property has sat vacant for 20 years until the freeway interchange was rebuilt. If all goes as planned, construction will get underway by summer of 2026 on The Krew Apartments, a 293-unit building that will include eight live / work units and 5,200 square feet of retail / restaurant space.
Another city-owned property being considered for redevelopment or repurposing is Fire Station 140. The property adjacent to Island Lake County Park at Victoria Street and County Road E will be vacated by the Lake Johanna Fire Department, when they move to their new headquarters facility in Arden Hills by July of this year.
A study is underway to help the city find a new purpose for the building.“ The city is taking this as an opportunity to either bring a unique use or something that benefits the community to the site,” said Simonson.
“ It could become a restaurant, some type of recreational or artisan use, or multi-tenant space. We are excited to explore options and see the interest in the market for a special opportunity for the city.”
Hugo
There will be a lot of development work happening in the City of Hugo in 2026, which lately has been experiencing population growth of one-to-two percent per year. According to the Metropolitan Council, close to 18,000 people now call the city home.
Two new commercial projects were recently approved. A Kwik Trip convenience store and gas station is planned on 159th Street and Highway 61. It will be the City of Hugo’ s second Kwik Trip.
The Dance Unit rendering.“ Hugo” In addition, The Dance Unit, which offers recreational, pre-competitive and competititve dance classes for people of all ages, is leaving its space in a multi-tenant building on Mercantile Drive and will be building a stand-alone 9,000 square foot building on Forest Boulevard North.
La Delicious Bread, a French Café and Bake Shop currently operating in Roseville, is considering a move to Hugo. If the project moves forward, what is currently a city-owned parcel near Egg Lake will be transformed into a complex where a new La Delicious Bread, some additional retail space and up to 20 townhome or condo units will be built.
There is also new housing coming to the City. Construction is currently underway on The Arbor West Apartments, an 89 unit building next to the Victor Market Place by Festival Foods.“ That’ s a good addition to that commercial node in the community,” said Rachel Juba, Community Development Director for the City of Hugo.
The project should be completed in August 2026. There is also a new
Oneka Fields development.“ Hugo” townhome community being built in the city.
When the Oneka Fields project off 159th Street is complete, it will consist of five buildings with twelve two-story townhomes in each. The 60-unit rental community is expected to be ready for occupancy in Spring 2026 and will feature one, two and three-bedroom homes.
“ They have their own entrances and their own garage, so that’ s a nice amenity for residents,” said Juba.
There are also two residential concepts being looked at that if approved will bring over 1,000 units of housing to the community. Juba said they are unique in that they both include commercial development in their plans.
“ This type of project hasn’ t been put in front of us in quite a long time. They are looking at mixed-use developments that will include commercial and residential. We’ re excited about that,” said Juba.
Also in 2026, the reconstruction of roads and trail improvements will be done in the Bald Eagle Industrial Park. Juba says the roads to be worked on are west of Highway 61 on 140th Street, south on Fenway Boulevard and then 130th street to Highway 61.
There is also a major overhaul of the 165th Street Corridor in the planning stages. A study is taking a look at what street and utility improvements are needed to open up several hundred acres of land for development. The study began in late 2025 and is expected to wrap up by May 2026.
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