The decision is expected to be formalized at a special Nov. 24 meeting.
The City Council ordered an environmental impact statement, an in-depth study that could last up to a year. After that review, the plans would be subject to approval or denial by the council.
Developer Ronald Clark has not yet announced whether he will stick the project out.
A recent city-hired consultant's report determined that the project could cause harm to the historical and cultural significance of the site. One question is whether any Indians were buried on Pilot Knob, a finding that could preclude any possibility of development.
Also, noise pollution from the nearby Minneapolis-St. Paul International Airport, and the project's effect on wildlife and water run-off were also raised as issues.
In January, the City Council ordered a less intensive environmental assessment worksheet. That study was completed in September. More than 150 citizens, groups and government agencies responded to that study — most in opposition to the project.
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