City of Minneapolis aims to tear down the Nicollet Avenue Kmart

Bulldozing Kmart will open Nicollet Avenue at Lake Street.
Screen Shot 2020-03-05 at 12.58.51 PM

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.

Sign up for our BREAKING NEWS newsletters

Next Up

police tape, crime scene

Police: Man dies after breaking window during domestic assault in St. Paul

The man's official cause of death will be ruled by a medical examiner.

Rep. Joe McDonald

'No respect': MN lawmaker shows up to debate in pirate costume

He was called out on Twitter by Rep. Kaohly Vang Her.

Rocco Baldelli

Twins-Athletics postponed for Monday amid COVID issues

The Twins are hoping to play a doubleheader with the A's on Tuesday.

Rep. Maxine Waters

Maxine Waters speaks in Brooklyn Center, draws ire of right-wing media

The congresswoman visited protesters Saturday night.

Justin Fields

5 quarterbacks the Vikings could select in the 2021 NFL Draft

Will the Vikings get a successor for Kirk Cousins?

Chet Holmgren

ESPN to televise Chet Holmgren's college decision on Monday

Holmgren has narrowed his list of suitors to seven schools.



Kmart building on Nicollet Avenue set to become temporary post office

USPS is looking for a temporary site while it rebuilds its post office that was burned in the riots.

Screen Shot 2020-11-20 at 11.53.28 AM

You can buy the 'K' from the notorious Lake Street Kmart

The City of Minneapolis is selling the sign.

Screen Shot 2020-05-26 at 9.40.27 PM

Watch: Protesters flee as police fire tear gas in south Minneapolis

Chaotic scenes in south Minneapolis as police and protesters clashed.

Hennepin County Medical Center, HCMC

Man killed in early morning crash on Minneapolis' Cedar Avenue

Minneapolis police responded to the crash at 2600 Cedar Avenue South early Friday morning.

Lowry Avenue Bridge

Fatal crash shuts down Lowry Avenue Bridge in Minneapolis

Police arrived to find one vehicle engulfed in flames.