A partnership led by Opus Development Co. has been recommended to develop the Seven Corners Gateway site in downtown St. Paul, a small but highly visible parcel across from Xcel Energy Center for which the city has long had big plans.

The Opus proposal, put forward with Greco Development, includes a hotel, market-rate apartments and retail stores surrounding a public plaza. Retail possibilities include restaurants, convenience shops and entertainment venues.

The land is owned by the city's Housing and Redevelopment Authority, made up of City Council members, which will take up the tentative developer agreement at its meeting next week. If it approves, Opus and Greco will have 18 months to flesh out the proposal.

In a prepared statement, St. Paul Mayor Chris Coleman said the Opus proposal "is continued proof of the city's vitality and economic momentum."

The HRA issued a request for proposals in July to develop the 2.4-acre site, bounded by W. 7th Street and Kellogg Boulevard. Officials were seeking a mixed-use plan that included an entertainment district.

The Opus proposal was chosen over the only other proposal received, from M.A. Mortenson Co.

The site is considered valuable for its proximity to downtown, the W. 7th Street entertainment area and the Smith Avenue Transit Center. But the city long has been stumped over what to do with it.

For years it was a sprawling parking area earmarked for a transit hub. Former Mayor Randy Kelly wanted to turn it into a hospitality-entertainment district, or possibly, a health care office campus.

Target once considered the site for a new store, but that plan also fizzled.

In 2009, an effort to build a practice facility on the site for the Minnesota Wild collapsed when former Gov. Tim Pawlenty vetoed financing for a proposal that included restaurants and shops. That idea was revived two years ago, but it took a back seat to the city's campaign to win state bonding money for the Lowertown baseball ballpark.

Kevin Duchschere • 651-925-5035