The only remaining Kmart operating in Minnesota could soon cease to exist, with the City of Minneapolis planning to buy it and demolish the store on Nicollet and Lake Street.
Located at 10 West Lake Street, the removal of Kmart would allow the City of Minneapolis to reestablish the street grid and keep Nicollet Ave. flowing through neighborhoods.
Built in 1977, the Kmart currently interferes with the flow of traffic on Nicollet Ave. between Lake St. and W. 29th St.
The City of Minneapolis has reached a deal with Transform Operation Stores to "terminate the Kmart store's leases" at a cost of just over $9 million.
However, the City's recommendation must first be reviewed by the City Council's Economic Development & Regulatory Services Committee. That will happen during a March 9 council meeting, with a full council vote scheduled for March 13.
"Reopening Nicollet Avenue at Lake Street has been a major City and community priority for decades," the city's recommendation letter reads, adding that bulldozing Kmart will "set the stage for new development on 10 acres of land currently home to single-story retail buildings and surface parking lots."
Terminated the property's lease prior to June 30 would cost approximately $9.1 million.
The lease is not scheduled to expire until 2053. More on how this would be paid for:
"The proposed funding source for the lease termination agreement is the City’s Streetcar Value Capture Fund. The Value Capture tool allows the City to tap property taxes generated from five parcels along the Nicollet Central corridor identified for a future streetcar line.
"The City Council authorized spending $8 million June 30, 2017 to purchase the leased-fee estate of 10 W. Lake St. Cash from the Streetcar Value Capture Fund covered the purchase."
If the council votes in favor of moving forward, demolition plans for later this year will be made, in addition to working with the community to plan for a new street and development at the site.