Another fancy apartment complex near the University of Minnesota campus?

That’s hardly news.

Except that this one could close a Stadium Village mainstay — Sally’s Saloon and Eatery.

But don’t fret, patio fans. Sally’s owners plan to reopen in the new building.

“It’s an institution,” said developer Daniel Oberpriller. “They’re very concerned that people will think they’re closing, that whole rumor.”

The property owners have rejected proposals in the past that didn’t include Sally’s, Chris Diebold, co-owner of the bar and the building it occupies, told the Minnesota Daily.

“Unless you’re willing to work with Sally’s, we’re not willing to sell you the property,” he said, according to the student newspaper.

Oberpriller, co-owner of CPM Development, promised that the classic college bar “will open in a bigger, better, more modern space.”

His company’s $26 million plan for the property, which still needs a couple of city approvals, calls for 98 apartments, mostly with one and two bedrooms, atop 11,000 square feet of retail space. A 450-foot studio might go for $900 to about $970 a month.

The six-story building’s facade will be “more modern” than its brick-clad neighbors, Oberpriller said.

“Because it’s such a visible building, we want it to stand out,” he said.

If the plans get approval from the Minneapolis Planning Commission and the City Council, construction could start by summer, with housing available in fall 2014.

Sally’s could close for nine or more months of that time.

When Joey Senkyr, a senior studying electrical engineering and theater, first learned of plans for the apartment building online, he wasn’t sure what it might mean for Sally’s. He was happy to hear that its owners and the developers worked out a way for the popular bar to stay put.

“I would have been sad to see Sally’s go,” he said.