Here's What Lakeville Is Planning for the Big Empty Stretch Along Cedar Avenue

Here's What Lakeville Is Planning for the Big Empty Stretch Along Cedar Avenue

February 21, 2026|4 min read|By South Metro Scoop

TLDR

The city studied the undeveloped land along Cedar Avenue between 185th and 200th Street — the area staff calls "the donut hole." The early plan calls for mostly single-family homes and townhomes with limited retail near major intersections. The old plan assumed a bus line was coming through here. That's not happening anymore. Nothing is final — this feeds into the 2050 plan starting soon.

If you live in south Lakeville — or you're curious about where the city grows next — the council got a first look Monday night at early plans for one of the biggest undeveloped areas left in the city.

The Donut Hole

City staff have been calling it "the donut hole." It's the stretch of land along Cedar Avenue between 185th Street and 200th Street. Development has been building up around it — Amelia Meadows, Cedar Hills, Reserve at Cedar Creek — but this middle chunk has stayed empty.

That's mostly because it doesn't have sewer service yet. Sewer is creeping in through the Amelia Meadows project, but it takes time. And it only happens when developers are ready to build.

Why the Old Plan Doesn't Work

Here's the big reason this is getting studied now. Lakeville's 2040 plan assumed a bus rapid transit line would run from Apple Valley through Lakeville along Cedar Avenue. That's gone. It's no longer in the Met Council's transportation plan.

That BRT line was going to bring higher density and more mixed-use development to this area. Without it, the land use needs to change.

What the Study Says

The city hired a consultant team called TKDA to do a market study. Here's what they found.

The area is best suited for homes. Single-family lots and townhomes make up the bulk of the demand. Apartments are in the picture — but on a smaller scale. Maybe 12 to 24 acres over the next 15 years.

Retail and restaurants? There's demand — but not a ton. The study pointed out that Lakeville already has a lot of retail along Cedar to the north, plus the new Marketplace at Cedar at 179th. There's only so much market to go around.

The early concept puts shops and restaurants near major intersections. One cluster would be near Grand Prairie Park, which opens this year and will bring a lot of traffic. Another would be further south, maybe around 190th or 195th.

Higher-density housing would sit closest to Cedar Avenue. Density drops as you move east and west into the neighborhoods. Natural areas — creeks, greenways, steep land — would be protected and used for trails.

What the Council Said

Council members liked the overall direction but had one big concern: don't lock in too little retail.

One member pointed out that shopping habits changed fast during the pandemic. Who knows what the market looks like in seven or ten years? They want flexibility to allow more commercial if the market shifts.

There was also talk about how this area connects to what's happening in Farmington to the south. Farmington has medium-to-high density residential on their side of the border. This part of Lakeville could end up being the closest retail hub for those future Farmington neighborhoods.

What's Next

Nothing is changing right now. This study is early groundwork. It'll feed into Lakeville's 2050 comprehensive plan update, which starts very soon.

Dakota County will also study the 185th Street extension through this area next year. That road is key to unlocking the northern part of the donut hole — but construction depends on development happening first.

The full buildout of this area will likely stretch past 2040. This is a long game.

The Bottom Line

South Lakeville's next chapter is being written right now. If you own property in this area, the city has been meeting with larger landowners and plans to send letters to smaller ones. And if you just want to know what's coming to your part of town, keep an eye on the 2050 comp plan process — public input will be part of it.

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