Minneapolis Selects Trellis to Lead First Phase of New Nicollet
The City of Minneapolis selected Trellis on July 15, 2026, to lead the first phase of New Nicollet, advancing redevelopment plans for the former Kmart property on Nicollet Avenue in South Minneapolis.
The decision gives Trellis responsibility for leading Phase 1 of a long-planned housing and mixed-use project. It moves the site into another implementation and planning stage, but it does not mean construction has started or that the project has received final approval in its completed form.
New Nicollet is planned for a former commercial property within Minneapolis city limits. The redevelopment is intended to bring new housing, public space and other uses to the site, changing how the property functions for nearby residents and the surrounding South Minneapolis area.
What the city selected
Trellis was chosen through a competitive proposal process. The City of Minneapolis has established a development framework for the property that provides guidance on uses and buildings across the site.
That framework creates a structure for moving from a broad redevelopment concept toward implementation. The selection of a lead partner is the next administrative step in that work. It does not, by itself, establish the final development program or guarantee that every element described in the broader framework will be built.
The city’s New Nicollet project information identifies the former Kmart site as the focus of the redevelopment and describes the project as being in planning and implementation. The city has not stated a final construction schedule, total project cost or final housing-unit count on that project page.
Why the former Kmart site matters
The property has been a major focus of South Minneapolis redevelopment planning because it is a former retail site with the potential for a different mix of uses. The planned project connects housing, public space and building development in one redevelopment effort rather than continuing the site’s previous commercial pattern.
For residents, the practical significance of the selection is that the city has moved from seeking proposals to identifying a partner for the first phase. More detailed decisions will determine what is ultimately proposed for the property, including the final mix of uses and the amount of housing.
The project is also moving forward while Minneapolis continues to administer separate housing-related development opportunities. City development notices list affordable-housing and housing-tax-credit funding opportunities for Minneapolis projects, including application deadlines in July 2026.
Those funding notices are separate from the selection of Trellis for New Nicollet. They provide broader context for the city’s ongoing housing and development work but do not establish financing or a funding award for the former Kmart redevelopment.
What happens next
The next known step is continued planning and implementation under the city’s development framework. Trellis will lead Phase 1 as additional project decisions are worked out.
Until those decisions are made, the final number of homes, total project cost and construction timing remain unsettled. The confirmed change is that Minneapolis has selected Trellis after a competitive process to lead the first phase of New Nicollet. The former Kmart site remains a planned redevelopment, not an active construction project.
Sources
- New Nicollet Redevelopment, City of Minneapolis
- Community Planning & Development RFPs, City of Minneapolis
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