Minneapolis Reviews Bids for Former Nicollet Kmart Site

After more than half a century of community frustration and debate, the city of Minneapolis has reached a critical milestone in redeveloping the former Kmart site along Nicollet Avenue, officially beginning the process of reviewing construction bids for the long-stalled property.

For decades, the Kmart store and its expansive parking lot blocked Nicollet Avenue, forcing drivers and transit users to detour around what many residents viewed as a glaring disruption to one of south Minneapolis’ key corridors.

“There has been interest in reopening Nicollet pretty much since Kmart was built, so this is a project that's been decades in the making, over 50 years,” said Linnea Graffunder-Bartels, senior project coordinator.

The city’s unusual decision to allow construction directly across Nicollet Avenue dates back to the 1970s, when financial pressures led Minneapolis officials to permit Kmart to build over the roadway. That decision remained controversial for generations until the city purchased the property in 2020, clearing the way for redevelopment.

Graffunder-Bartels is now helping lead the transformation of the 10-acre site, which is expected to become a mixed-use development focused on housing, community services, and public space.

“Affordable housing, ground floor retail as well as space for non-profit services,” she said.

In addition to residential and commercial uses, the plan calls for a new park and community center, creating a destination intended to reconnect neighborhoods that were long divided by the closed roadway.

The city is currently reviewing about a dozen construction bids, marking a major step forward for a project that has been discussed for generations.

“It's a really exciting day for us and for the community,” Graffunder-Bartels said.

While full buildout of the development is expected to take approximately five years, officials say Nicollet Avenue itself is scheduled to reopen later this year, restoring a critical north-south connection and reducing travel times for drivers, cyclists, and transit users.

With bid submissions now complete, city staff will evaluate proposals before presenting finalists to residents at a public open house next month. Officials emphasized that community feedback remains a central part of the decision-making process, consistent with the project’s long history of public interest and neighborhood advocacy.

Once complete, the redevelopment is expected to not only reopen a major roadway but also address housing needs, expand community services, and reshape one of south Minneapolis’ most recognizable — and controversial — sites.

Originally reported by Susan-Elizabeth Littlefield in CBS News.