The City of Bloomington has had its eye on redeveloping the 13 acres at 84th Street and Lyndale Avenue. United Properties, a locally based commercial real estate firm, hopes to assemble the land and win city approvals by year-end. After demolishing a vacant 100,000-sf former home improvement store, the developer would then build a 72,000-sf Cub Foods store as well as an 11,000-sf retail building for convenience stores such as drug cleaners, coffee shops and restaurants.

In a year or so when the new building is ready, Cub plans to move from its present local store in a former Holiday Superstore, which will in turn be demolished to make room for the three-story residential project--50 townhomes and a 75-unit senior co-op. The townhomes will range in cost from $160,000 to $210,000.

"This development will allow us to pair a first-class senior housing development and townhomes with a new Cub store and other key retail services," says Keith Ulstad, VP of development at United Properties.

Applewood Pointe, United's fourth such project in the Twin Cities, will provide seniors living in the area with an opportunity to stay in their community, says Brian Carey, VP of development at United Properties.

"As seniors sell their homes, the existing neighborhoods benefit from an infusion of young families and their desire to take on home improvement projects," Carey says.

The city plans to subsidize the project through tax increment financing.