The former Oak Ridge Hotel and Conference Center in Chaska may soon spring back to life and become a year-round tourist destination.

At Monday’s Chaska City Council meeting, Scandvik Hotels received unanimous approval for its concept plan to convert the existing 171,000-square-foot building — located across the street from Costco and adjacent to McKnight Lake — into a hotel and Nordic spa complex.

Oak Ridge Center closed in September 2020, and the property has been idle since. Chaska police have responded to break-ins and trespassing complaints at the site on a regular basis.

“This property has been an issue for us since it closed down a few years ago,” said Matt Podhradsky, Chaska city administrator. “To have a potential reuse for this site that could be a destination into the community, I think is exciting to be talking about.”

Initial plans presented by Scandvik Hotels, a Canadian hospitality company, call for the construction of 20,000 to 25,000 square feet of new outdoor Nordic Spa space, including warm water pools, cold water pools, sauna structures and relaxation pavilions. In addition, between 10 and 15 of the existing hotel rooms will be converted into traditional spa rooms serving clients.

The hotel portion of the business would feature 130 remodeled guest rooms, plus a 15,000-square-foot conference center available for corporate retreats, weddings and community gatherings. The developer also plans to add a restaurant and lounge, with a seating capacity between 100 and 150, to serve hotel guests and the community. An expanded 306-stall parking lot will serve the clientele.

The eventual Sandvik at Oak Ridge spa property will be promoted as part of the Marriott Tribute Portfolio, a collection of independent, upscale boutique hotels.

Travis Batting, president of Scandvik Hotels, told the City Council that his team is working closely with city staff to get the property back up and running. Because it has been vacant for the past five years, about $40 million in needed upgrades will occur during the project.

“It’s a unique property,” he said. “We’re not looking to completely disrupt the property. We’re bringing amenities that will enhance its already beautiful state, and that’s our goal.”

Of particular concern is the heavily wooded area behind the building. Council members are asking the developer to limit the amount of construction disturbance to the slopes and trees between the complex and the lake. That’s where the warm and cold pools are proposed, along with the relaxation pavilions and sauna structures.

Jennifer Haskamp, a planning consultant assisting Sandvik through the land use review process, said the goal is to minimize any additional encroachment on undisturbed land. She said she believes the outdoor spa amenities can be redesigned to meet the city’s requirements.

“One of the things I want to highlight is the commitment of this group to ensure that whatever happens on the lake side of the property is done in a very environmentally conscientious way,” she said. “This group is very committed to that and making sure that whatever goes in there has the least amount of impact possible.”

Ward 3 Councilmember McKatla Hatfield said she appreciates the developer’s efforts to protect the natural beauty surrounding the site.

“That may make it a little more difficult, but the respect for the land there is important,” she said.

 “This is really exciting,” Ward 4 Councilmember Leah Sheveland said. “It’s been a vacant spot for a while, and many people in the community are asking what is happening.”

Mayor Taylor Hubbard agreed.

“It’s nice to be able to see that building relive its life again and be its true self,” she said. “It sounds like it’s going to be a wonderful fit. I’m very excited to see that move forward.”

Batting said Nordic spas are very popular in Canada, but often they are stand-alone businesses not attached to a hotel. He said he expects the combination spa and hotel concept will be successful year-round, even as spa customers decline during summer months but other customers book hotel rooms as they visit the region’s many attractions.

“Minnesota is very naturally Scandinavian, so I think our branding and the amenities that we’re adding will be embraced by everyone here,” he said.

“I think we all agree that the world is a stressful place,” he continued. “The nice thing about a Nordic spa is it allows you to press pause. The thermal cycle … just does so much for wellness.”

If all goes according to plan, final approvals for the project will occur in early 2027. Construction is expected to take place from 2027 to 2028, with an opening date in 2028.