Excelsior’s historic downtown on the verge of big change

After much debate about historic preservation vs. continued development, the Excelsior City Council voted to OK a three-story, mixed-use apartment building for a prominent downtown corner.

Six hours of discussion Monday evening preceded the preliminary approval at 1 a.m. Tuesday. Before that, a Planning Commission also convened several times before ultimately recommending the project to the council, with adjustments.

Final approval should come at the council’s Aug. 4 meeting, as long as developer Mithun Cos. makes a few adjustments. The original plan’s height and parking were the main areas of concern before approval. The city is asking for a design alteration and fee payment to address those issues.

The initial proposal called for a $35 million to $40 million complex with about 40 apartments above ground-floor restaurant and retail space. It would also fill a lot that has been empty for 15 years, despite its prime location facing Water Street, the city’s main drag.

“I personally am really excited about it. It’s a big step forward for the city,” Mayor Gary Ringate said.

The property is in an area that’s on the National Register of Historic Places, and locally there’s a two-story limit on construction there.

The proposed building is three stories, and the original plan intended for part of the top floor facing Water Street to be set back eight feet. The council wants the entire Water Street facade set back to visually minimize its height from the street.

To gain final approval, Wayzata-based Mithun will most likely need to pay a “parking-impact fee” based on the cost of creating the remaining parking spaces, Ringate said.

“The third-floor setback is workable, and we believe we’ll be able to reach an appropriate solution on the parking,” said Mithun Cos. owner Matt Mithun. “It’s been a collaborative process. We appreciate everybody’s time and effort, and we’re looking forward to moving forward.”

The project is a planned unit development, a designation that allows construction outside the standard zoning rules in exchange for features that benefit the public.

Despite the project bending some of the rules, Ringate said he’s ”comfortable with where it is" because the “the public benefit overrides minute details.” The proposal’s main public benefit is re-opening an 80-year-old movie theater that’s been closed since the pandemic.

Excelsior residents who spoke at the well-attended Monday meeting were largely in favor of the building. A few critics have said they fear the project will permanently alter the city’s quaint 19th-century look.

“Excelsior is a microcosm of what is happening to the rest of the world, where the middle class is diminished, where now people can’t afford to live in Excelsior anymore,” he said, “and it’s because of the choices that the local city government has made over the past 25 years.”

Ringate, who grew up in neighboring Shorewood, called Excelsior a “very interesting town with a lot of history.” The city has seen an influx of new residents in recent decades. They have built bigger houses, while boutiques and high-end restaurants have replaced mom-and-pop shops.