Dakota Commercial and Development is scheduled to break ground to redevelop city-owned commercial property acquired through Mandan's $24 million settlement with Burlington Northern Railroad to recover from diesel spill contamination.

City administrator Jim Neubauer said groundbreaking on the $4 million project is expected by Sept. 1 at the corner of Main Street and First Avenue Northwest.

Dakota Commercial and Development plans to create a $4 million four-story, mixed-use building with commercial space at the street level. Thirty one-and two-bedroom market-rate apartments will be placed above the commercial level.

If Dakota Commercial and Development meets all investment requirements and completes the project as outlined in its plan, it can buy the property for $1.

More development

In a related matter, the Mandan City Commission recently extended its agreement with Western Edge Developments, LLP to redevelop the property at the corner of Main and Collins Avenue and the former bookstore property at 116 E. Main. This also is property acquired through the diesel settlement.

This is the second extension of the project. Geris and Mike Hopfauf have until Dec. 31 to secure commercial and residential tenants and to tweak their building plans.

They intend to invest $6 million on the lot, and the city will then allow them to buy the property for $1 if completed as planned.

Their initial deadline to proceed with the project was late December of 2008. That deadline was first extended to June.

"We want to recreate the look of the old Mandan Hotel," Geris said.

Plans call for two stories of custom condominiums, tailored to color, flooring and decorative tastes of its future owners. Nineteen of these units are planned.

Geris Hopfauf hopes to bring back the look of the original brick building exterior of the Mandan Hotel.

The lower-level project plans call for commercial development.

One location will have a nine-office suite area for smaller businesses which share a conference room and fax machine. Each business would still have private office space.

Also available will be six other commercial spots ranging between 1,200 and 1,800 square feet.

The five lots at Collins and Main will be known as Peoples Square, named after the former owner of the hotel, George Peoples. Geris Hopfauf said these could be manipulated to be larger for a business' needs.

She said a Bennigan's restaurant could be on the negotiating table again as one of the commercial level draws. The national franchise has reorganized after the bankruptcy process.

The Hopfaufs also hope to develop a property facade project for the block between Collins and First Avenue, known as G.P. (George Peoples) Row.

Geris Hopfauf said GP Row would show 25-foot-wide increments of store fronts.

Western Edge Development would own the west half of the block (including the former bookstore site), but also hope to get cooperation from east block property owners to recreate the old-time downtown business district look.

Geris Hopfauf said if a coalition of businesses on that block were formed, incentive money could come from the city's Renaissance Zone fund, tax increment money and Mandan grant money.

Slanted wells

Neubauer said work on installing seven slanted wells underneath Mandan's Main Street will start around July 27.

It is part of its latest strategy to remedy its diesel contamination problems from beneath the city. The slanted method is the city's preferred option because it won't disrupt Main Street traffic or endanger those tending the wells.

Neubauer said the rescheduled Buggies-n-Blues car show event on July 25-26 did not delay the well project's startup. Rather, part of the work had to be rebid. "It will work out well," he said. "They can start installing the wells July 27."

Leggette, Brashears and Graham Inc. oversees the recovery process of the diesel product within the city. Its work is funded by the Mandan Remediation Trust that determines how the $24 million diesel settlement is spent.

The cleanup process is expected to take between two and three more years to finish.

(Reach reporter LeAnn Eckroth at 250-8264 or leann.eckroth@bismarcktribune.com.)