10/17/2023 2:44:45 PM
St. Paul – The Minnesota Department of Employment and Economic Development (DEED) has awarded more than $1.9 million in grants to six Minnesota cities in the latest round of funding from the Redevelopment Grant Program, helping communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use.
This round of funding will leverage more than $69.4 million of private investment and is expected to create or retain 93 jobs. Grantees expect to redevelop 25.27 acres of land and see a tax base increase of more than $935,000.
"Investing in redevelopment is investing in the future and wellbeing of Minnesota communities," said DEED Commissioner Matt Varilek. "When it comes to providing resources and building up communities, Minnesotans can expect DEED to step up and help."
Since its inception in 1998, the program has awarded 247 grants totaling $83 million. These projects have created or retained more than 31,000 jobs and leveraged more than $3.7 billion in private investment, as well as reclaimed 1,472 acres of blighted property. They have also generated more than $60 million in new tax revenue.
Redevelopment grants pay up to half of the redevelopment costs for qualifying sites, with a 50% local match. They can assist with the cost of public land acquisition, building and site demolition, infrastructure improvements, soil stabilization and ponding or other environmental infrastructure.
Details on the individual projects below:
The city of Annandale is awarded $176,050 for asbestos abatement, demolition and public infrastructure improvements on a .16-acre site. Formerly used for retail, the site will be redeveloped into a mixed-use building that includes two 2,500-square-foot retail spaces and four apartments. It is anticipated this project will create four jobs, increase the tax base by $16,925 and leverage $1.7 million of private investment. Matching funds will be paid by tax increment financing.
Local contact: Kelly Hinnenkamp, 320-274-3055
The Duluth Economic Development Authority (DEDA) is awarded $236,940 for site demolition, geotechnical soil stabilization and public infrastructure improvements on a 1.9-acre site. Formerly developed as a gasoline filling station, this site will be redeveloped into a four-story, 80-unit apartment building with 32 affordable units. It is anticipated this project will create two jobs, increase the property tax base by $111,136 and leverage $18.1 million of private investment. Matching funds will be paid by tax increment financing.
Local contact: Adam Fulton, 218-730-5325
The city of Mankato is awarded $149,275 for building demolition and public infrastructure improvements for a 4.38-acre site. Formerly used as a bowling alley and later an antique mall, this site will be redeveloped into a five-story, 72-unit mixed-use building with 9,650-square-feet of commercial space. It is anticipated this project will create 10 jobs, increase the property tax base by $178,248 and leverage $14.9 million in private investment. Matching funds will be paid by tax increment financing.
Local contact – Courtney Kramlinger, 507-387-8711
The Sandstone Economic Development Authority (EDA) is awarded an additional $258,500 in Redevelopment Grant funds for abatement and public utility improvements on a 3.0-acre site. Historically used as a public school, this site will be redeveloped into a 31-unit apartment building with up to 12 affordable units. The project is anticipated to create one job, increase the tax base by $52,018 and leverage $9.4 million of private investment. Matching funds will be provided by the developer, tax increment financing and other sources.
Local contact: Kathy George, 320-245-5241
The South St. Paul Economic Development Authority (EDA) is awarded $800,000 for public infrastructure and ponding on a 15.62-acre site. Formerly developed as a municipal lift station, a landfill and a regional water treatment plant, this site will be redeveloped into a 182,000-square-foot industrial building. It is anticipated this project will create 38 jobs, retain 34 jobs, increase the property tax base by $528,491 and leverage $22.2 million of private investment. Matching funds will be paid by the developer and other sources.
Local contact: Ryan Garcia, 651-554-3278
The city of Spring Grove is awarded $312,990 for demolition and public infrastructure improvements on a 0.20-acre site. Formerly used as a hardware store, this site will be redeveloped into a 14-unit mixed-use apartment building with 7,500-square-feet of commercial space. It is anticipated this project will create four jobs, increase the tax base by $48,518 and leverage $3.1 million of private investment. Matching funds will be provided by the developer and tax increment financing.
Local contact: Courtney Bergey Swanson, 507-251-9272
Economic Development
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