A mixed-use apartment development anchored by an Aldi grocery store cleared a critical hurdle.

The Chanhassen City Council on Tuesday voted in favor of the site plan for a proposal from United Properties to build Venue, which would include a 19,000-square-foot Aldi beneath a six-story, 134-unit apartment building and a covered parking garage.

“It allows us to bring a fresh housing option to the city, along with a best-quality and value-priced grocery store, both of which we believe there is significant demand for in the market,” said Rick McKelvey, vice president of development for United Properties, in a statement. “We welcome this opportunity to work with the city of Chanhassen to continue strengthening its already healthy community.”

The site is at 525 West 78th St. near the Chanhassen Dinner Theatres, Chanhassen Cinema and the SW Transit Park & Ride lot, and is now the site of an multitenant retail building. Construction is expected to begin in early 2018 and be completed by early 2019.

The project is a joint venture between United Properties and Roers Investments, which has already acquired the property.

“We are excited to bring this high-quality development to downtown Chanhassen, and are appreciative to the members of the community for their assistance and foresight in bringing this project together,” said Brian Roers, co-owner of Roers Investments. “Venue will be another great investment into an already vibrant community, and we are excited to be a part of it.”

The project team includes LHB Architects, Stevens Construction and Jonathan Adam of Silverstone Realty.

The project is part of an aggressive U.S. expansion plan by the Germany-based Aldi. The grocer plans to spend $5 billion to build 900 new stores and remodel more than 1,300 others as it aims to become the third largest grocer in the U.S., after Walmart and Kroger. In the Twin Cities, that means Aldi will spend $34 million to remodel 28 of its 35 stores between now and 2019. Two to four new metro stores will be added per year through 2020. Outstate stores in Northfield, Duluth, Moorhead and Red Wing will open this year. Several of those stores are being built in mixed-use suburban projects that include apartments.