Lake Street Kmart redevelopment plan offered by Minneapolis officials

Minneapolis Kmart demolition begins

Following years of discussion, and a fire that destroyed part of the building, demolition of the former Kmart site on Lake Street has begun.

MINNEAPOLIS (FOX 9) - After a fire led to an expedited demolition of the former Lake Street Kmart, city officials will unveil their plan to once again reconnect Nicollet Avenue across Lake Street in south Minneapolis.

As part of the New Nicollet Redevelopment Project, the city plans to develop the remaining site into a high-density, mixed-use, walkable area, in addition to connecting the thoroughfare.

An informal open house will be held for the public on March 7, to offer specifics on the plan.

"It’s so exciting to see the New Nicollet Redevelopment Project reach another important milestone," said City Operations Officer Margaret Anderson Kelliher in a statement. "We are grateful to all our community members who have shared their ideas so far to help shape the vision for the new Nicollet Avenue and public spaces. This project is truly a once-in-a-generation opportunity to reshape this site in south Minneapolis and re-knit the neighborhoods around the former Kmart site together."

The vacant Kmart on Lake Street in Minneapolis burned the morning of Oct. 20, 2023.

As part of the plan, the city intends to construct the two-block area of Nicollet Avenue between Lake Street and Cecil Newman Lane. Upgrades will include new sidewalks, bicycle accommodation, new curbs and gutters and utility improvements. Construction is anticipated to begin in 2025.

In November 2023, the Kmart was officially demolished by construction crews following a fire that burned parts of the vacant building in October.

The Kmart was built in 1978, but had been vacant since closing in May 2020 after civil unrest stemming from George Floyd’s death. The location then became a temporary post office in November of that year.

Minneapolis then agreed to pay $9.1 million to buy out Kmart's lease and proceed with plans to demolish the building. Plans were initially in place for the city to tear down the building in the spring of 2024, but the fire expedited them.

Before the fire, city staff hosted an open house to get feedback on the Nicollet Redevelopment Project, seeking public input on a redesign of the area that had left Nicollet Avenue disconnected for more than four decades – discussing the potential of adding housing, retail and public spaces in the process.

Community input sought for old Kmart site

It's been a fixture on west Lake Street in south Minneapolis for decades, but after closing its doors in 2020, the former Kmart site is now the focus of a major redevelopment project - and the city is asking for input.