DEED Awards $5.57 Million in Cleanup Funding

ST. PAUL – Grants totaling $5.57 million were awarded by the Minnesota Department of Employment and Economic Development (DEED) to clean up or investigate contamination at 13 sites in Minnesota.

The funding from the agency’s Contamination Cleanup and Investigation Grants Program will result in redevelopment projects that create or retain 890 jobs and increase the local tax base by $5.17 million.

“This program has more than paid for itself since it was created 22 years ago,” said DEED Commissioner Shawntera Hardy. “Sites that were redeveloped with the help of cleanup grants have attracted $6.8 billion in private investments and generated nearly $119 million in new tax revenue.”

DEED cleanup grants, which are awarded twice a year, account for about 75 percent of funding used for reclaiming polluted sites and brownfields statewide. The remaining 25 percent comes from the Metropolitan Council, cities, counties, other local units of government, private landowners and developers.

DEED’s Contamination Cleanup and Investigation Grant Program has awarded 507 grants worth more than $176 million since the program’s inception in 1995. Thanks to the funding, 3,547 acres of contaminated property have been reclaimed for development projects, resulting in 22,766 new jobs and 24,724 retained jobs.

The DEED website has more information on the Contamination Cleanup and Investigation Grants Program. Here are details on the latest round of funding:

Bloomington – Minnesota Center, $567,000

Bloomington was awarded $567,000 in cleanup funding for this 3.8-acre site contaminated with petroleum and other pollutants. The site, formerly part of an aggregate mine and landfill, will be redeveloped with a nine-story hotel, including a 7,000-square-foot restaurant and a two-level parking structure. This project will create 91 jobs and increase the tax base by $712,480. Matching costs will be paid by the developer and other grant sources.

Local Contact: City of Bloomington, Jason Schmidt, 952-563-8922

Buffalo – Downtown Redevelopment, $41,270

Buffalo received $41,270 in investigation funding for this 5.3-acre site. Formerly used for residential and a variety of commercial uses, the site will be redeveloped with a high-density, mixed-use housing development that will include a restaurant. It is anticipated the project will create 25 new jobs and increase the tax base by $184,970. Matching costs will be paid by the city.

Local Contact: City of Buffalo, Laureen Bodin, 763-682-1181

Carver – Lenzen Bus Garage, $14,831

Carver was approved for $14,831 in investigation funding for this 3.75-acre site. The former bus garage site will be redeveloped with mixed-income senior housing, with the potential for memory care and full-service medical care. Officials anticipate the project will create 14 new jobs and increase the tax base by $3,578. Matching costs will be paid by the city.

Local Contact: City of Carver, Brent Mareck, 952-448-8737

Dakota County CDA – Valley Ridge, $50,000

The Dakota County Community Development Agency (CDA) was awarded $50,000 in investigation funding for this 6.65-acre site. Past uses include a gas station, shopping center and two dry cleaners. This site will be redeveloped with a gas station and 27 owner-occupied townhomes. The project is expected to create 20 new jobs and increase the tax base by $153,908. Matching costs will be paid by Dakota County and the Dakota County CDA.

Local Contact: Dakota County CDA, Kari Gill, 651-675-4477

Duluth EDA – IPS Cranes, $50,000

The Duluth Economic Development Authority (DEDA) received $50,000 in investigation funding for this 24.9-acre site. The site was used in the past for manufacturing pig iron, steel, coke, coal tar and carbureted water gas. Plans call for building a 30,000-square-foot industrial building on the site. This project is expected to create 17 new jobs, retain 24 jobs and increase the tax base by $65,770. Matching costs will be paid by the developer.

Local Contact: Duluth EDA, Josh MacInnes, 218-730-5323

Edina – 49.5 France, $581,063

Edina was awarded $581,063 in cleanup funding for this 2.86-acre site contaminated with petroleum and other pollutants. Past uses include surface parking, a dry cleaner and other commercial/office operations. This site will be redeveloped with additional commercial space, structured parking and a 100-unit apartment complex. The project will create 67 new jobs and increase the tax base by $1.07 million. Matching costs will be paid by the city, the developer and other grant sources.

Local Contact: City of Edina, Bill Neuendorf, 952-826-0407

Maple Grove – Hilger Transfer Site, $1 million

Maple Grove was awarded $1 million in cleanup funding for this 13-acre site contaminated with petroleum and other pollutants. Formerly used for unregulated disposal and waste transfer, this site will be redeveloped with a 192,700-square-foot office/warehouse building. The project will create 115 new jobs, retain 225 jobs and increase the tax base by $438,195. Matching costs will be paid by the developer, the city and other grant sources.

Local Contact: City of Maple Grove, Carie Wille, 763-493-6003

Minneapolis – Azine Alley, $294,421

Minneapolis received $294,421 in cleanup funding for this 0.82-acre site contaminated with petroleum and other pollutants. Historical uses of the site include a hotel, blacksmith and coppersmith operations, a tarpaper factory and an electric engine shop. Redevelopment plans call for an eight-story mixed-use building offering 120 hotel rooms, 70 condominiums and 3,500 square feet of street-level retail. The project will create 75 new jobs and increase the tax base by $1.1 million. Matching costs will be paid by the developer and other grant sources.

Local Contact: City of Minneapolis, Kevin Carroll, 612-673-5181

Minneapolis – Midtown Corner, $98,800

Minneapolis was approved for $98,800 in cleanup funding for this 0.69-acre site contaminated with petroleum and other pollutants. The site previously contained an electrical substation, sheet metal shop, machine shop and auto repair shop. It will be redeveloped with a 90-unit apartment building offering about 15,000 square feet of commercial space. The project will create 40 new jobs and increase the tax base by $128,922. Matching costs will be paid the developer and other grant sources.

Local Contact: City of Minneapolis, Kevin Carroll, 612-673-5181

Port Authority of Winona – 60 Main, $456,996

The Port Authority of Winona was awarded $456,996 in cleanup funding for this 0.96-acre site contaminated with nonpetroleum pollutants. Formerly used for rail, coal storage, and industrial and warehouse operations, this site will be redeveloped with a six-story mixed-use building offering 60 hotel rooms, 94 apartments and 5,200 square feet of retail. This project will create 34 new jobs and increase the tax base by $450,000. Matching costs will be paid by the Port Authority.

Local Contact: City of Winona, Lucy McMartin, 507-457-8250

Robbinsdale – Terrace Mall Phase II, $212,840

Robbinsdale received $212,840 in additional cleanup funding for this 10.4-acre site contaminated with petroleum and other pollutants. The former movie theatre and shopping mall site will be redeveloped with a 90,700-square-foot grocery store. The new development will create 363 new jobs and increase the tax base by $299,568. Matching costs will be paid by the developer and other grant sources.

Local Contact: City of Robbinsdale, Marcia Glick, 763-531-1258

Rochester – Urban on First, $939,443

Rochester was approved for $939,443 in cleanup funding for this 1.33-acre site contaminated with petroleum and other pollutants. This site housed a variety of industrial and commercial uses, as well as a parking lot. Redevelopment plans call for a six-story, 154-unit apartment building offering 9,000 square feet of retail space. The project will create 22 new jobs and increase the tax base by $359,266. Matching costs will be paid by the developer.

Local Contact: City of Rochester, Terry Spaeth, 507-328-2008

South St. Paul EDA – 843 Hardman Ave., $1.26 million

The South St. Paul Economic Development Authority (EDA) was awarded $1.26 million in cleanup funding for this 36.5-acre site contaminated with petroleum and other pollutants. The site was formerly used as a sewage treatment pond, unpermitted dump and trucking/construction operations. A 270,000-square-foot distribution center is planned. The project will create 86 new jobs, retain 35 jobs, and increase the tax base by $499,213. Matching costs will be paid by the developer and other grant sources.

Local Contact: City of South St. Paul EDA, Ryan Garcia, 651-554-3278

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow DEED on Twitter.