Electric cars and Dilly Bars? It’s going to be a banner year in Lake Elmo.
City officials confirmed Thursday that a Tesla dealership is coming to the city, as well as a Dairy Queen.
Electric carmaker Tesla, which has sales and service centers in Eden Prairie, Rogers and Maplewood, plans to build a dealership on an open parcel of land near the northwest corner of Hudson Boulevard and Keats Avenue, Mayor Charles Cadenhead said.
“There are limited opportunities for people to buy Teslas in the metro area, so we’re excited to have this one in Lake Elmo,” he said. “The way things are going with electric vehicles, they’re certainly garnering a lot of attention. People want to use them.”
Drake Real Estate Services, based in Denver, is developing the project, and Lake Elmo officials expect the project to move through the city’s planning commission and city council this spring. “They want to have a development agreement in place by the end of May, so they can begin work this summer,” Cadenhead said.
Tesla also plans to open a sales and service center in Golden Valley, said Jason Zimmerman, the Golden Valley’s planning manager. Drake Real Estate Services also is developing the project, located in the former States Manufacturing building, which is currently being demolished, he said.
The new building, located at 650 Ottawa Ave. N., will be about 50,000 square feet. The Golden Valley City Council, which approved a conditional-use permit for the project last fall, was particularly excited about the sustainable aspect of Tesla, Zimmerman said. “Golden Valley places a high value on sustainability.”
A spokesman for Drake confirmed that the company has projects in Golden Valley and Lake Elmo, but said he could not comment further.
Lake Elmo’s first Dairy Queen also is expected to begin construction this summer — south of the new Tesla dealership, in fact, Cadenhead said.
“We’re excited about having businesses excited about being in Lake Elmo,” he said.
The Dairy Queen Grill & Chill, which will feature inside seating and a drive-through, is the city’s first foray into fast food, said City Administrator Kristina Handt. The DQ will be located next to a new restaurant, called Lakewood Tavern, which is expected to open this spring, she said.
“It’s great to see the commercial development follow our residential development,” Handt said. “That’s a message we’ve always struggled with. People don’t always understand that you need rooftops to support businesses.”
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