Plans by the city of Minneapolis to tear down a strip mall in the Hiawatha-Lake area of the city and replace it with a housing-retail project is running into opposition from nearby residents.

City officials would like to see high-density development around a station for the proposed Hiawatha Avenue light-rail line at East Lake Street and Hiawatha Avenue. To accomplish this, the city would like to raze the Hi-Lake shopping center – through eminent domain, if necessary. The 130,000 sf center has about 15 businesses, including a discount store called Savers.

The redevelopment plan, which has a $14.5 million budget, calls for the city to buy the land, and make way for a project that could add 1,000 housing units and 30,000 sf of retail on the site. Some nearby residents want the current businesses to remain. The City Planning Commission will have a public hearing on the issue is expected Sept. 25.

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