TOWER — After more than two decades of false starts and dashed hopes, Tower’s harbor development project has encountered another hurdle just days after a groundbreaking ceremony.
The mixed-use development, which promises to transform the city’s long-dormant harbor area into a vibrant commercial and residential hub, halted construction this week when developers discovered problematic soil conditions that require remediation.
Marshall Helmberger, executive director of the Tower Economic Development Authority, said the discovery came as crews from Eagle Ridge LLC began excavating for foundations on the southeast side of the harbor. What they found was a hodgepodge of unstable soils, including muck, old roadbed materials, and areas where groundwater was seeping through.
“It’s not a surprise that there are some issues down there,” Helmberger said in an interview this week. “There’s definitely some stuff that was dumped there over the years, probably some dating back to the original excavation of the harbor.”
The soil problems have temporarily halted what will be Tower’s largest development in decades. Pine City-based Eagle Ridge LLC had heavy equipment on site and were prepared to begin pouring foundations following the ceremonial groundbreaking.
“They were ready to start,” Helmberger said. “They tore up the old roadbed, got all the concrete and asphalt out of there, and were going to put in fill to get to the right level. But when they dug down, they found the bad soils.”
Engineering solutions in motion
Despite the setback, both TEDA and Eagle Ridge remain committed to moving forward. The developers have already brought in a soil engineer and developed a remediation plan. The question now is funding.
TEDA is hoping that money left over from an upcoming bid for water and sewer extensions to the harbor — as well as the Marjo RE property on the opposite side of Hwy. 169 — will cover at least a portion of the soil remediation costs. If so, construction could resume as early as this fall.
Helmberger said he has little doubt that the project will move forward, despite the temporary setback. “I’m 99 percent sure this is going to happen now,” Helmberger said, emphasizing the developers’ commitment. “They’re very committed, and they’re excited. And we really do have to address the soil issues because you’re not going to get another developer in there until you deal with this.”
Decades in the making
The current setback is the latest chapter in a development saga that dates back to the late 1990s. The harbor area holds special significance in Tower’s history. It was originally the terminus where trains would deliver passengers who would then board steamships to reach resorts and logging camps around the lake.
That connection was severed in the late 1920s or early 1930s when the Minnesota Department of Transportation built Hwy. 169 across the area with a box culvert instead of a bridge, cutting off harbor access.
“That’s what the city’s trying to recreate,” Helmberger said. “The whole connection was eliminated, and all the businesses that had clustered around there went somewhere else.”
The city has been working to restore that connection ever since the harbor bridge was installed back in 2008, but the development has faced repeated obstacles. The 2008-2009 financial crisis derailed early plans, and subsequent proposals for hotels and townhomes failed to materialize. A particularly problematic period involved the city discovering it didn’t have clear title to portions of the land.
After three years of legal complications, the city transferred the property to TEDA in 2020, which has been working since then to attract a developer.
Vision for mixed-use development
When completed, the Eagle Ridge project will include a three-story building featuring approximately 7,500 square feet of commercial space on the ground level with 12-14 apartments on the upper floors. 
Additionally, at least 14 twin homes will extend westward along the harbor, with docking opportunities available for residents. The development is designed as a walkable community that will connect to existing trails, including a planned path along the river to the Your Boat Club marina.
“We’ve always wanted to have commercial as part of the original vision — a mixed development to attract people and have places where people could stay or live,” Helmberger said. “You’ve got places to stay, shops, marinas. People can get access out to the lake.”
Moving forward
Despite the current delay, Helmberger expressed confidence that the project will succeed where others have failed
“After 20-some years of kind of false starts, a lot of people have been probably rightfully skeptical that anything is going to happen,” Helmberger acknowledged. “But these developers are committed.”