Minneapolis Seeks Proposals for Redevelopment of Former Kmart Site

The city of Minneapolis is now accepting development proposals for the first phase of a major redevelopment project at the former Kmart location in south Minneapolis, a 10-acre site poised to become a mixed-use hub.

The project, guided by the New Nicollet Development Framework approved in May, will be led by private sector developers with oversight from the Community Planning and Economic Development (CPED) department. The initial phase focuses on the southeast portion of the property and will include affordable housing, ground-floor commercial space, non-profit services, and indoor program space for the Minneapolis Park & Recreation Board.

The overall framework envisions 500 to 600 rental units across five buildings, with retail space incorporated on the ground levels, offering a blend of affordable and market-rate apartments. A key component of the plan is a 20,000- to 30,000-square-foot grocery store at the intersection of Nicollet Avenue and Lake Street, addressing a long-standing need for accessible food options in the area. Affordable townhomes are also planned for the west side of Nicollet Avenue. According to CPED Director Erik Hansen, the city is intentionally avoiding a single master developer, opting instead to allow multiple partners to build and own portions of the completed site.

Developers have until 4 p.m. on January 6 to submit proposals, and an information session is scheduled for today, October 14, from 3 to 4 p.m. for interested parties. Details can be found on the City of Minneapolis website. This redevelopment is expected to significantly revitalize the Lake Street corridor, which has faced economic challenges in recent years.

City officials stated that they look forward to reviewing innovative proposals that align with the New Nicollet Framework and contribute to a vibrant, inclusive community.