Shakopee Gravel is running out of sand and gravel to mine, and now the owners of the pit want to preserve the remaining material to develop 130 acres for almost 400 homes.

Every development and construction project in Shakopee has used the site for gravel and sand for decades thanks to low delivery costs, according to Bert Notermann, one of the property owners. Now the concept plan is to turn it into an upscale neighborhood of about 220 single-family homes, 160 town homes and three commercial buildings.

The three commercial buildings outlined in the gravel site’s plan would be used for offices, research development, manufacturing and distribution, Shakopee Director of Planning and Development Michael Kerski said.

About 20 years ago the city was made aware of the fact that the dusty gravel pit just west of Mystic Lake Drive and south of 17th Avenue could at some point morph into a buzzing development. According to the city’s 2040 comprehensive plan, it’s guided as a mixed-used retail center, which includes retail, dining and office space.

To align with the comprehensive plan, the Shakopee City Council would have to rezone the site’s 2040 plans as a mixed employment center and mixed residential area.

In Kerski’s presentation to the Shakopee Planning Commission Feb. 6, he recommended rezoning because the project is consistent with the district’s purpose.

The concept plan is the second major development proposal discussed by the city this month – and if both plans go through, the neighborhoods would be neighbors.

On Feb. 4, the city council submitted an environmental assessment for a proposed development just north of the site called Summerland Place, which would consist of 300 apartment units, 221 single-family homes and 68 townhomes on 115 acres of agricultural land.

Bert Notermann, who owns the gravel site along with the late Lando Bush’s family, said Shakopee Gravel has always been a beneficial business to the city, and the owners have held those same standards when searching for potential developers.

“We’re going to make sure our project is something that Shakopee will be proud of,” Notermann said. “If we put our name on it… it is going to be good for Shakopee. We decided to go with (developers) M/I Homes and Opus, because I felt they’d be reputable.”

If all goes as planned, the development’s three proposed industrial buildings could start grading as soon as this summer. But the entire project could take up to 10 years to complete, according to the developers.

“This is a big project,” Notermann said.

A similar project is still in the works at a mining site called Prior Lake Aggregates in Savage, where in 2015 CLC Development began building Big Sky Estates. The entire mining area is roughly 240 acres (though some portions are not owned by Prior Lake Aggregates), and when all phases of development are finished, there could be as many as 580 single family lots on the site.

When commissioners raised concerns about semi-truck traffic coming in and out of a residential area due to the three proposed industrial buildings, Kerski referenced the Amazon distribution center.

“Amazon has 200 trucks going in and out every day,” Kerski said. “And it’s not really very noticeable.”

He said most traffic will occur outside of the hours most residents will be coming and going and that the proposed industrial buildings would have significantly fewer trucks than the Amazon warehouse.

As for the residential portion of the project, the 220 proposed single-family homes would start at about $425,000, John Rask, Vice President with M/I Homes, said. The 160 town homes would start at about $320,000.

“We’re not known to be the most affordable builder, but we provide a little bit of a higher-quality home,” Rask said.

Commissioners seemed especially concerned about the prices of the proposed homes.

“Let’s work backwards and see what the people who teach our children and protect our families can afford,” Planning Commission Chair Kent Robbins said to Rask. “I would certainly emphasize that.”

The project will be brought forward at the Feb. 18 city council meeting for consideration.