Redevelopment Grant Program

The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use.

Overview

Grants pay up to half of the redevelopment costs for a qualifying site, with a 50% local match. Eligible applicants are cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities.

Grants can assist with the cost of public land acquisition (if public ownership is necessary to facilitate redevelopment), building and site demolition, infrastructure improvements, soil stabilization, ponding or other environmental infrastructure, and costs necessary for the adaptive reuse of buildings, such as asbestos abatement and lead paint mitigation. Grants do no provide assistance for building construction, renovation, or rehabilitation.

At least half of the grant funds available will be awarded to sites located outside of the seven-county Twin Cities metropolitan area, given that a sufficient number of eligible applications are received from outstate applicants.

View more information about the Redevelopment Grant Program.

Program Information
Application Information
Funded Projects
Contact

Program Information

Who is eligible?

Eligible applicants for this program are statutory or home rule charter cities, economic development authorities, housing and redevelopment authorities, counties, or port authorities. While these are the eligible applicants, the site can be either privately or publicly owned.

What sites are eligible?

Only sites that have been previously developed, and the need to redevelop the land into a different and/or more productive use exists, qualify for a Redevelopment Grant. Sites which were never historically developed with buildings or infrastructure (i.e., cornfield) do not qualify. This program is not intended for parties that have operated on the site long-term, but rather to assist new parties with site redevelopment. The Redevelopment Grants pay for up to 50% of the redevelopment costs for a qualifying site.

Eligible & Ineligible Costs

Eligible Costs
- Public acquisition*
- Demolition costs (as defined by Minn. Stat. 116J.572)
- Interior environmental abatement (e.g., asbestos abatement, lead paint abatement)
- Public infrastructure improvements** (e.g., water, sanitary, and storm connections, public sidewalks, public street or sidewalk lighting, public roads, etc.)
- Environmental infrastructure (e.g., stormwater ponding or system, etc.)
- Geotechnical soil correction (must submit a geotechnical soil evaluation)
*Although the statute recognizes acquisition as an eligible expense, DEED will only consider public acquisition, and these costs are only eligible as matching costs.
**Although these costs are eligible, they should not be the sole costs of the grant request.

Ineligible Costs
- Construction costs
- Building rehabilitation costs (including interior demolition)
- Environmental remediation (i.e., soil, groundwater, and/or vapor contamination)
- Project/grant administration
- Work performed or fees charged by the grantee or another public entity
- Costs of appraisals or other application costs
- Streetscaping/landscaping (including rain gardens)
- Soft costs (e.g., performance bonds, insurance, etc.)
- Contingencies
Priorities
1. Need for redevelopment in conjunction with contamination remediation needs. Maximum = 15 points.
2. Redevelopment project meets current tax increment financing requirements for a redevelopment district and tax increments will contribute to the project. Maximum = 25 points.
3. Redevelopment potential within the municipality. Maximum = 85 points.
4. Proximity to public transit if located in the metropolitan area. Maximum = 5 points.
- Multi-jurisdictional projects that consider the need for affordable housing, transportation, and environmental impact. Maximum = 15 points
Application Information

Application Deadlines

The Redevelopment Grant Program operates on a semi-annual grant cycle. Deadlines for submitting applications are February 1 and August 1 by 4:00 p.m. each year. If these days fall on a weekend, the deadline will be the following business day. Three complete sets of application documents are required for each project: 2 paper copies and 1 electronic copy on a flash drive. An applicant may apply for more than one project, but a separate application must be completed and submitted for each site.

NOTE: Emailed applications will not be accepted. Please fill out the entire application. All applications must be complete upon submission to qualify for a grant. This includes the fully signed, required resolutions. Applications should be in a binder or bound with attachments clearly marked and tabbed.

For a copy of the Applications Materials, please contact Amber Merritt at 651-259-7449, amber.merritt@state.mn.us

Applications are ranked on the following criteria:
1. Need for redevelopment in conjunction with contamination remediation needs. Maximum = 15 points.
2. Redevelopment project meets current tax increment financing requirements for a redevelopment district and tax increments will contribute to the project. Maximum = 25 points.
3. Redevelopment potential within the municipality. Maximum = 85 points.
4. Proximity to public transit if located in the metropolitan area. Maximum = 5 points.
5. Multi-jurisdictional projects that consider the need for affordable housing, transportation, and environmental impact. Maximum = 15 points
Funded Projects

Select the link below to view, download or print a list of projects funded through the Redevelopment Grant Program.
- Currently Funded Redevelopment Grant Projects
For More Information

Contact Kristin Lukes at 651-259-7451 or 800-657-3858 or email kristin.lukes@state.mn.us.