A high-profile plan to remake a prime downtown Excelsior corner has reopened a yearslong fight over how much of Water Street’s historic character should be preserved. The proposal ties a three-story apartment-and-retail building to a revival of the long-closed Dock Cinema, yet it also calls for demolishing roughly the rear third of the theater. Preservation advocates say that cut goes too far under the city’s own rules. So far, the clash has produced unanimous preliminary PUD approval from the city and a denial of a key demolition permit.
As reported by the Minnesota Star Tribune, developer Matt Mithun has called the corner "the last awesome location" and pitched a mixed-use project meant to bring residents and more reliable weekday foot traffic to Water Street. The Star Tribune also noted that the Heritage Preservation Commission turned down the demolition request after concluding that too much historically significant material would be removed from the theater.
What The Proposal Would Build
According to the project's Preliminary PUD narrative on file with the City of Excelsior, the plan includes roughly 43 apartments, about 5,600 square feet of ground-floor commercial space, a 70-space underground garage and stormwater upgrades tied to the site. The application also lays out a restoration of the Dock Cinema marquee and facade and a community-oriented screening space carved out of part of the existing building, while the vacant lot next door would hold the new mixed-use structure.
Why Preservationists Object
Preservation advocates argue that the Dock Cinema, whose current form dates to the 1940s, is tightly woven into Excelsior’s small-town identity and should not be partially razed. Lisa Stevens of the Lake Minnetonka Historical Society told the Minnesota Star Tribune that neighborhood movie houses once formed "part of the cultural dna of small towns like Excelsior." The Heritage Preservation Commission based its denial on a city rule that demolition of more than 30% of a historic structure triggers stricter review, and commissioners said the proposed removals crossed that threshold.
Downtown Already Reeling From A Recent Fire
The redevelopment fight is unfolding just as another downtown landmark, Haskell’s Port of Excelsior, was heavily damaged in an early-morning blaze on May 6, amplifying worries about longtime businesses and the future of Water Street. Local coverage reported no injuries and noted that owners plan to rebuild, with details from CBS Minnesota and an early-morning blaze scorches Excelsior staple report.
What Happens Next
The developer has already cleared a preliminary PUD step, which lets the city and Mithun negotiate public benefits, but demolition and final design still need sign-off from the Heritage Preservation Commission and likely the City Council. City application documents outline the rest of the PUD process and spell out the public-benefit commitments on the table, including infrastructure work and site improvements intended to offset the project’s impact. Those details appear in the project’s Preliminary PUD narrative.
Why It Matters
For Excelsior residents, the debate is both practical and emotional. Supporters argue that more downtown residents would mean steadier weekday customers for local shops and restaurants. Opponents warn that chipping away at historic buildings will erode the character that brings people to Water Street in the first place. Upcoming hearings will test whether city leaders can land on a compromise that adds needed housing without making downtown feel unrecognizable.
