Two developers submitted proposals for a city-owned parcel in the Mill District of downtown Minneapolis, with both pushing for mixed-use development complete with housing, restaurant space and a dog park.

On Friday, the city closed its request for proposals for 205 Park Av. after it received submissions from Minneapolis developer Sherman Associates and St. Paul-based Grand Real Estate Advisors.

The largest part of Sherman's estimated $36 million proposed project is a 115-unit, six-story apartment building with 80 percent of the units being market-rate and the remaining 20 percent being limited to households with no more than 60 percent of the area median income.

The 200,526-square-foot development also would include four for-sale townhouses; a restaurant and separate bakery and coffee shop operated by restaurateur Kim Bartmann; a police substation, and a dog park.

The $41 million project proposal submitted by Grand Real Estate Advisors also calls for a six-story building. Grand's plans include 48 to 52 for-sale condos, which would range in price from $350,000 to $1.3 million; a dog park, and a 3,000-square-foot retail space for a bakery and restaurant. The firm is in discussions with the City of Lakes Community Land Trust to include affordable units.

The site is directly across South 2nd Street from the Mill City Museum and is one of the few remaining developable sites in an area that has transformed over the past decade into housing, hotels and businesses.

"The city's goals for the site include maximizing its development potential and contributing to the vibrancy of the Mill District area for current and potential customers, residents, hotel guests and visitors," the city's planning and economic development office said in a statement.

City Council Member Jacob Frey, who represents the neighborhood, said Monday he was pleased with the proposals. "I'm thrilled we're removing a surface parking lot and adding activity, residents and dynamic retail space," he said. "The neighborhood is really becoming a highlight of our city."

While city officials have a preference for affordable housing at the property, they also have said they would like ground-floor retail space to be part of plans.

City staff will give preference to apartment projects with at least 20 percent of the units affordable to those making at or below 50 or 60 percent of the area median income, officials have said. As far as for-sale units, the city would like to see a contribution to a land trust to ensure more affordable homes.

City staff will review the proposals, then seek public input in collaboration with the Downtown Minneapolis Neighborhood Association and the Mill District Neighborhood Association. The City Council will ultimately select a developer and authorize the sale later this summer.

Nicole Norfleet • 612-673-4495

Twitter: @nicolenorfleet