It was mid-2000s (circa 2004 I think) and the multi story historic building redeveloped sat mothballed. It had a massive warehouse on lots of land sitting behind it. The warehouse had been hit by the tornado and damaged. The City wanted the historic building saved and redeveloped.
The lead developer who had either bought it or had it under contract (i.e. the then-owners wanted to sell to them) had a specialty in developing Target (or similar) anchored shopping centers in suburban locations and were interested in the site as a retail "power center" site. They were only interested in the rear portion since 1) historic redevelopment was way outside their expertise range and 2) the historic building was blocking the view of the planned anchor tenant (Target) from 7th Street.
So as I understand it, the City insisted they not demo the historic building, and that they find a way to redevelop it, and they otherwise would enable the remainder of the retail project to move foward. I think there was some disruptive sewer line or something involved too that made the developer more apt to seek the CIty's help beyond just allowing industrial to retail rezoning (might have been possible by-right to develop "higher" retail in "lower" industrial zone, actually).
The City also knew a grocery was going to be needed so either asked or required (not sure) that Target include its grocery version (Super Target) in the building rather than its ordinary store. So what was on the table from the developer originally was so far away from a City Target/ urban format Target that prob wasn't within the realm of reality for the City to push for that. Because there was so much land and the surrounding neighborhood at the time was pretty low density and not redeveloping, I'm sure the thought of an urban format, more expensive store (if Target even had them rolled out at that point) would have seemed insanely optimistic from the developer's perspective at that time.
Someone mentioned Tom Thumb. Yes, that was a miss. Should have found way to rotate front or side more toward 7th so addresses the street better.