Development of former Sears store near State Capitol making slow progress

After more than 50 years in business, the Sears on Rice Street near the Minnesota State Capitol closed for good in 2019. There are plans for a new development that continues to slowly make its way through the approval process.

Because it’s so close to the Minnesota State Capitol, all plans from the developer, Seritage, have to be approved by the Capitol Area Architectural and Planning Board (CAAPB).

"Seritage is looking to demolish the building and redevelop anywhere from seven to nine buildings here along Rice Street," says Paul Mandell who helped oversee the development plans until his recent retirement from CAAPB. "Restaurants and retail, maybe some office, spec office, but all ground floor retail and restaurants."

Seritage is an offshoot of Sears overseeing the development of old Sears sites across the country. The 14-acre site near the State Capitol is among its prime development opportunities. There are 8,000 to 10,000 people working every day in or around the Capitol Complex, including some nearby hospitals.

The development could help revitalize the neighborhoods around the State Capitol.

"It would make it much more than a 9 to 5 campus," Mandell says. "There would be a lot more lively neighborhood interaction. There would be a lot more people on the mall in the evening hours and such — walking the kids or walking their dogs and pets."

Seritage might be reducing the number of new office space because so many people are likely to keep working from home.

The plans for the property, including new concept drawings of what it might look like at completion in 2030, were recently presented to other local building owners and city planning officials. The CAAPB board has ultimate approval powers because the property falls within a 60-block radius around the Capitol under their zoning authority.

Mandell says the development is probably still two years away from any construction work getting underway.