Oak Park Heights Creates New Opportunities Through Careful Planning

Oak Park Heights is facing a challenge that most economic development teams dream about: businesses keep moving there. Demand is high for expansion into this community along the St. Croix River, while commercial space is increasingly limited.

“We don’t have a lot of vacancies, and more businesses want to come to Oak Park Heights,” says Jacob Rife, City Administrator. “We believe that planned growth creates opportunity, and the city has done a lot of great planning work to get us where we are today.”

Oak Park Heights presents a robust commercial corridor with direct highway accessibility.  Residents enjoy living along the river without losing access to greater Minneapolis-St. Paul. Together, this community continues to grow with new families and business investments.

However, Oak Park Heights will face new challenges and opportunities in the coming years, including large parcels of land opening up in its backyard. Learn more about this city in Washington County and what its future might hold. 

The Allen S. King Plant Will be Decommissioned by 2028 

One of the most notable news stories coming from Oak Park Heights is the closure of the Allen S. King Plant, operated by Xcel Energy. For the past 60 years, this plant has produced energy by burning coal, but it will be decommissioned as part of Xcel Energy’s goals to move toward cleaner initiatives. While the plant will close in December 2028, Oak Park Heights city planners (along with their neighboring Bayport cohorts) are already evaluating what could happen to the 140-acre site.

“The King Plant has been an important part of our city,” says Rife. “This is going to be an exciting opportunity, but there are going to be challenges to get there.”

Oak Park Heights is already working through planning exercises to understand what the plant could become. There are opportunities for commercial and mixed-use development while also embracing the plant’s location. The King Plant is built along the scenic St. Croix National Scenic Riverway, which is owned by the National Park Service. Whatever becomes of the acreage could complement the natural beauty and recreation space of the area.

So far, Oak Park Heights residents are intrigued by the plant’s future. They understand that the restoration and remediation of the plant could take several years, but they see potential for new opportunities.

“The King Plant generates significant property tax revenue for the area,” says Rife. “While any change is difficult, we’re exploring different options and are taking a clear-eyed approach to what the land could be.”

Oak Park Heights is Affected by the Stillwater Prison Closure

The City of Oak Park Heights is also closely following news surrounding the Minnesota Correctional Facility-Stillwater, a state prison slated to close in 2029. The prison is located in nearby Bayport and offers another 100-acre space with views of the river. Oak Park Heights is involved because the prison is adjacent to the King Plant site.

“I look forward to working with our Bayport counterparts,” says Rife. “We’re already having discussions about what the future of the site could be,” Rife also credits local and state elected officials for being proactive about planning for the future of the prison site, along with Washington County planning teams.

“This is a great opportunity,” he adds. “When else are you going to have 250 available acres near the St. Croix River, within twenty minutes of Minneapolis-St. Paul, near major commercial hubs, and in a desirable place for residents?”

More Than 4,500 People Call Oak Park Heights Home

While Oak Park Heights is a strong commercial corridor, it continues to attract customer-facing businesses. Some new arrivals coming to the community include a 7 Brew Coffee and Dave’s Hot Chicken. These companies cater to residents who want a scenic lifestyle while still maintaining access to a major metro area.

“I wouldn’t change anything in the city, we’re unique in our own way,” says Rife. “You don’t often see neighborhoods that are quiet but still close to commercial areas. It’s a rare combination, and residents can get anything they need here.”

Oak Park Heights is also home to Stillwater High School, and students flow into the city after school, looking for recreation activities or clocking in at jobs. This brings a fun energy to Oak Park Heights and contributes to its unique culture.

“Oak Park Heights has untapped potential,” says Rife. “It’s right on Highway 36, so it’s just as easy to get to the Twin Cities as it is to reach your cabin in Wisconsin. There’s a strong residential community and demand for business space. More amenities than ever are opening here.” 

Explore Other Communities in East Metro MSP

Oak Park Heights is found in East Metro MSP and is supported by the Washington County Community Development Agency (CDA). This is a thriving region in the Twin Cities and a desirable area in Minnesota. Learn about other cities in the region, including Stillwater, Newport, and Forest Lake. See how Washington County balances access to Minneapolis-St. Paul with some of the most beautiful shoreline along the St. Croix River. Contact the CDA and discover untapped opportunities here.