DEED Awards $2.16 Million for Redevelopment Projects

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) awarded $2.16 million in grants and loans for eight redevelopment projects in Minnesota.

The agency awarded seven grants under its Redevelopment Grant Program for projects in Battle Lake, Edina, Fridley, Mankato, Minneapolis (two) and Winona. In addition, DEED approved a loan from its Demolition Loan Program for a project in Braham.

The projects will create or retain 1,822 jobs and increase local tax bases by $2.6 million.

“Redevelopment grants and loans are a good taxpayer investment, with the latest round of projects attracting $151.8 million in private money,” said DEED Commissioner Shawntera Hardy. “A new corporate headquarters, apartments, offices and commercial space are among the projects that developers are planning to develop.”

The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites for planned projects. Grants pay up to half the redevelopment costs for a qualifying site, with a 50 percent local match required.

The program has awarded more than $67.3 million for 185 projects since it was created 20 years ago. Nearly 1,300 acres of blighted property have been returned to productive use in Minnesota with the help of program funding. Nearly 27,800 jobs have been created or retained over the history of the program. Read more about the Redevelopment Grant Program on the DEED website.

The Demolition Loan Program helps development officials with the costs of demolishing blighted buildings on sites that have future development potential but where there are no current development plans. Low-interest loans can pay up to 100 percent of demolition costs for a qualifying site and can be used for site acquisition costs. Go to the DEED website for more details about the Demolition Loan Program.

The following is a breakdown of the latest round of funding:

Battle Lake – Hatchery Row

The city of Battle Lake was awarded $171,186 in Redevelopment Grant funds for asbestos abatement, demolition and infrastructure costs on a 0.42-acre site. The site will be redeveloped with an 18,000-square-foot building offering a mix of office space, brewery space, a museum and six apartment units. The project is expected to create 17 jobs, retain 20 jobs and increase the tax base by $105,821. Matching costs will be covered by tax increment financing.

Local contact: City of Battle Lake, Val Martin, 218-864-0424

Edina – 4500 France Apartments

The city of Edina was approved for $335,000 in Redevelopment Grant funds for asbestos abatement, demolition and infrastructure costs on a 1.02-acre site. The site will be redeveloped into a 45-unit apartment complex offering 6,500 square feet of commercial space. Officials anticipate the project will create 41 jobs and increase the tax base by $441,200. Matching costs will be covered by tax increment financing.

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

Fridley – Northern Stacks VIII

The city of Fridley Housing and Redevelopment Authority will receive $250,000 in Redevelopment Grant funds for demolition and infrastructure costs associated with the renovation and reuse of a warehouse building on an 11.66-acre site. It is anticipated the project will create 18 jobs, retain 82 jobs and increase the tax base by $185,619. Matching costs will be covered by tax increment financing.

Local contact: Fridley HRA, Paul Bolin 763-572-3590

Mankato – 507 N. Riverfront Drive

The city of Mankato was approved for $67,115 in Redevelopment Grant funds for asbestos abatement, demolition and infrastructure costs on a 0.31-acre site. The site will be redeveloped into a three-story, mixed-use building offering nearly 3,000 square feet of commercial space and 13 apartments. The project is expected to create nine jobs, retain two jobs and increase the tax base by $26,500. Matching costs will be covered by tax increment financing.

Local contact: City of Mankato, Kristin Prososki, 507-387-8687

Minneapolis – Malcolm Yards Market

The city of Minneapolis was awarded $225,000 in Redevelopment Grant funds for selective demolition, asbestos abatement and infrastructure costs on a 4.34-acre site. The site will be redeveloped into a 16,500-square-foot food hall showcasing local craft food and beverages. The project is expected to create 51 jobs and increase the tax base by $111,658. Matching costs will be covered by the developer. Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

Minneapolis – Rand Hotel

The city of Minneapolis received $812,614 in Redevelopment Grant funds for asbestos abatement costs associated with renovating a 26-story office building into a 266-room hotel on a 0.25-acre site. Officials anticipate the project will create 172 jobs, retain 40 jobs and increase the tax base by $1.23 million. Matching costs will be covered by other grant sources.

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

Winona – Fastenal Expansion Project

The city of Winona was awarded $175,000 in Redevelopment Grant funds for demolition on a 2.4-acre site. The site will be redeveloped into a 120,000-square-foot office building that will house Fastenal’s headquarters. The project is expected to create 70 jobs, retain 1,300 jobs and increase the tax base by $489,942. Matching costs will be covered by the developer.

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

Braham – ERCOA Site Loan

The city of Braham was awarded a $125,723 loan from the Demolition Loan Program to abate and demolish a former warehouse/industrial building. The 1.09-acre site has the potential for commercial development. Braham plans to issue a general obligation tax abatement bond in order to repay and secure the loan.

Local contact: City of Braham, Sally Hoy, 320-396-3383

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 us on Twitter.