Prior Lake Says No to 166-Unit Tower Street Apartment Building
TLDR
A developer wanted to build a 166-unit apartment building near Tower Street and Toronto Avenue.
More than 100 neighbors signed a petition against it, and many spoke out at the meeting.
The Prior Lake Planning Commission voted unanimously to recommend denying the project on July 6, 2026.
It's not over — the Prior Lake City Council votes on it July 14, and needs 4 of 5 votes to approve it.
If you live anywhere near Tower Street and Toronto Avenue in Prior Lake, you probably already heard about this one. At the July 6, 2026 Prior Lake Planning Commission meeting, a developer asked to build a 166-unit apartment building on land the city had set aside for stores and businesses. After a packed public hearing, commissioners said no. Here's the full story.
What Was Actually Being Decided
A company called Roers Acquisitions LLC wanted to build on two empty lots just west of the old school district office building, near Tower Street and Toronto Avenue. Right now, that land is zoned for stores and businesses. Roers needed our city to do two things: change the city's long-term map for that land from "for businesses" to "for high-density housing," and then change the zoning to match.
This vote wasn't about approving the actual building yet. It was only about whether that land should even be allowed to hold apartments. If commissioners had said yes, the developer would've come back later with a detailed building plan for a separate vote.
The concept Roers showed the commission was a 166-unit building, three and four stories tall, with parking split about evenly between an underground garage and an outdoor lot. Studio apartments would've started around $1,500 a month, with three-bedroom units closer to $2,700.
Why the Land Was Even in Question
City planner Casey walked commissioners through some background. Back around 1994, this land got rezoned so the school district could put a kindergarten there — it used to be an old bowling alley, and schools weren't allowed on land zoned for businesses. So the zoning got changed to make it work.
Casey also shared some numbers that shaped a lot of the debate. In Prior Lake, homes cover about 85.7% of the city's property tax bill. Stores and businesses only make up about 4.43% of the city's total taxable value. Compare that to Savage, where businesses make up 13.5%, or Shakopee, where it's more than 26%. The city does have around 800 acres set aside for businesses, but most of that land doesn't have sewer or water service yet, so it's not ready to build on.
The developer, Nick from Roers, told commissioners the property had been listed for five years with zero interest from businesses — only interest in apartments. He said if the rezoning failed, the company could still build 60 to 75 apartments "by right" (meaning without needing this approval) on part of the land, while keeping the rest as business land.
Neighbors Pushed Back Hard
This is where the meeting really heated up. The public hearing opened at 7:34 p.m., and neighbor after neighbor stood up to oppose the project. Steve Potter, who lives on Pond View Trail, brought in a petition with more than 100 signatures — and said 30 more people signed after he'd already turned it in.
Concerns ranged all over the map:
Traffic. Drivers can't turn left at Franklin near the site, and neighbors worried about backups on the hill and extra congestion near the Ponds park.
Height and privacy. The four-story corner of the building would reach about 44 to 45 feet at its peak. Potter said he planned to check whether people in fourth-floor bedrooms would be able to see into his yard.
Losing business land. Robert Ericson, who lives on Pond View Trail, said giving up that commercial land was "not a bell we can unring."
Tree buffers. Neighbors worried that new trees planted to screen the building wouldn't survive next to a retaining wall, or would take 20 years to grow in.
Property values and a "bait and switch" feeling, since the land had been zoned for businesses for decades.
Staff pointed out the apartment building would actually generate less traffic than a commercial daycare would on the same site — roughly 750 trips a day, with about 60 in the morning rush and 65 in the evening rush. That didn't change many minds in the room.
The Vote and What's Next
After the public hearing closed at 8:13 p.m., commissioners talked it through. Commissioner Schmokel worried about losing potential restaurants and businesses downtown. Commissioner Rook said the plan just didn't feel like the right fit. Commissioner Yuro, who grew up in Prior Lake and remembered having a birthday party at the old bowling alley on this very site, agreed it wasn't the right call.
In the end, the commission voted unanimously to recommend the Prior Lake City Council deny both the land-use change and the rezoning. Chair Fleming closed it out with a warning for everyone watching: "It's not the right time now. But I'm going to be honest with you all. It's — it will come back. Something similar will be coming back."
That's because a commission recommendation isn't the final word. This heads to the full City Council on July 14, 2026, where it needs 4 of the 5 council votes to actually pass. If the council also says no, staff noted the school district office site next door stays zoned for high-density housing, and a future request to rezone that land for businesses instead probably wouldn't sit well with the Metropolitan Council, the regional agency that reviews these kinds of housing and land-use decisions.
Growth pressure in the south metro isn't unique to Prior Lake — it's part of a bigger conversation happening across Scott County as cities balance new housing with existing neighborhoods. And this meeting wasn't all business — commissioners traded a little small talk about the 4th of July fireworks before getting down to it.
The Bottom Line
For now, the Tower Street apartment plan is dead — but only on paper. The real decision comes July 14 when the Prior Lake City Council votes, and it takes 4 of 5 votes for the rezoning to pass. If you have strong feelings about this one, that meeting is your next chance to be heard. And based on what Chair Fleming said, don't be surprised if a similar apartment proposal for this same stretch of land shows up again down the road. Keep an eye on our Prior Lake coverage for updates as this moves to the council.
FAQ
Is the apartment building completely canceled? Not officially. The planning commission only makes a recommendation. The Prior Lake City Council has the final vote on July 14, 2026.
How many apartments were being proposed? 166 units, spread across buildings that were three and four stories tall, with underground and surface parking.
Why did the land need to be rezoned in the first place? The two lots are currently zoned for stores and businesses. The developer needed the city to change that to allow an apartment building instead.
What if the council also says no? The land stays zoned for businesses. Staff say the developer could still build 60 to 75 units "by right" on part of the site without needing this approval, or a similar apartment proposal could come back later.
Can I still speak up about this before the final vote? Yes. The Prior Lake City Council meeting on July 14 is the next opportunity for residents to comment before the final decision.
