Nicollet Avenue set to reopen at Lake Street before Thanksgiving

MINNEAPOLIS (FOX 9) - A main traffic artery in south Minneapolis cut off for decades to house a Kmart that has since been demolished is set to reopen once again.

Nicollet Ave reopening

What we know:

Now known as the New Nicollet project, officials with the city of Minneapolis confirm to FOX 9 that a target date to reopen the popular corridor has been set for Nov. 24, pending weather delays to finish final work being done. 

Officials note that any delay bumping up against the Thanksgiving holiday would likely push the reopening into the following week.

‘New Nicollet’ plans

The backstory:

In March 1978, the city demolished buildings around Lake and Nicollet with the hopes of redeveloping and revitalizing the area, ultimately approving the construction of Kmart to serve the community’s retail needs.

However, as shopping habits shifted, those needs changed with them.

Then came a fire.

On Oct. 20, 2023, Minneapolis Fire Department crews responded to a fire in a vacant storefront. By the time they arrived, the fire had breached the roof of the building around 5 a.m., which led to its collapse, and ultimately expediting its demolition.

Dig deeper:

For decades, city leaders and community residents have sought to reconnect Nicollet Avenue, saying it could serve as not only a space for more housing and green areas, but offer a convenient public transportation route from south Minneapolis to downtown.

But for more than three years now, the surrounding block of Lake Street and Nicollet Avenue has been vacant following its demolition, which had closed its doors years prior.

City leaders have previously said residential buildings could bring hundreds of rental units to the area, including both market rate and affordable housing.

What they're saying:

"It’s been a long road to get here, and we’ve spent a lot of time to get here to make sure we get it right this time," said Linnea Graffunder-Bartels, the Senior Project Coordinator for Community Planning and Economic Development in October 2025. "The ultimate goal is to create a place that really serves the needs of people that live in the area and will come to live in the area, so lots of housing, places to get your daily needs met. And then places, public spaces, that are comfortable and people can relax and recreate."

What's next:

As for what's next for the currently empty block, city officials guard against optimism that residents will see condos or parks anytime soon.

The city continues to solicit developer bids on phase one of the upcoming project, while having already undergone several community surveys as to what residents want it to become.

The Source: Information confirmed by Minneapolis officials and previous FOX 9 reporting.