Minneapolis to demolish vacant building on former Kmart site

The city of Minneapolis will tear down a vacant building on the former Kmart site sooner than it had originally planned to save money and improve the area's appearance.

The City Council recently approved $500,000 to demolish a former grocery store on the site in September, clearing the way for future redevelopment. It was getting expensive not to tear the building down.

"We are spending too much money trying to keep the fire suppression system going," said Rebecca Parrell, the city's project supervisor.

The building sits adjacent to the former Kmart building. Acquiring full ownership of the 10-acre site cost the city at least $22 million. The city wants to revitalize the area with plans to reconnect Nicollet Avenue, add park space and set the stage for development.

The city had planned to demolish both the grocery store and the former Kmart at once. But the city is temporarily leasing a portion of the old Kmart building to the U.S. Postal Service. The post office will stay in that space until fall 2023 as it rebuilds two of its south Minneapolis facilities destroyed in the riots after George Floyd's murder.

The demolition for the former Kmart is tentatively slated for 2024. It's still unknown how much the new Nicollet Avenue project will cost.

Bids to demolish the grocery store came in much lower, Parrell said. The city will select a contractor in August and the area will be fenced off, she said.

In August, the city will begin public engagement for the Nicollet Avenue project. The monthslong process includes gathering feedback from the community on how the site should be redeveloped. That first phase alone could cost the city about $100,000, Parrell said.

The city hired St. Paul-based real estate consulting firm NEOO Partners Inc. to help design and lead the community engagement process in partnership with a coalition of community organizations.

The next step in engaging the public, which requires council approval, will focus on redesigning Nicollet Avenue and future spaces for parks and playgrounds as well as walking and biking connections.

Creating a high-density, walkable mixed-use neighborhood is the ultimate goal.

Council Member Aisha Chughtai, who represents the area, said she's excited that some of that engagement effort will prioritize people who are generally left out of such discussions. Her focus includes preventing involuntary displacement of working class and immigrant families who make up a sizable portion of her ward, she said.

"I'm really looking forward to our community, shaping what the future of the Kmart site looks like, and to ensure that whatever it is that ends up there is a public asset. It's a public good, and it's built for the people," Chughtai said.