DEED Awards $2 Million in Redevelopment Grants and Loans

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) awarded $2 million in grants and loans to assist in the demolition and redevelopment of five sites in Minnesota.

DEED awarded four redevelopment grants for the cities of Mankato, Minneapolis, Woodbury and Edina. Fergus Falls Port Authority was also awarded a Demolition Loan from the agency.

“Redevelopment can be a costly and time-consuming process for local municipalities,” said Governor Tim Walz. “With DEED’s assistance, these projects will attract or retain 455 jobs and increase the local tax base by as much as $1.76 million.”

“Turning blighted and underutilized sites into productive uses is a good investment,” said DEED Commissioner Steve Grove. “The criteria for DEED’s Redevelopment Grant Program and Demolition Loan programs ensure that awarded projects provide the highest return in public benefit for the public costs incurred.”

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 50 percent local match required.

The program statute has specific criteria to rank projects including the redevelopment potential within the municipality, the overall need and readiness of the proposed project, the increase in tax base for the community, and the number of jobs created and retained.

The program has awarded 189 grants and $67.7 million in funds since its inception in 1998. Over 1,300 acres of blighted property have been returned to productive use in Minnesota with the help of program funding. Over 28,000 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.

Demolition Loan Program

Fergus Falls Port Authority - Dairy Site

The Fergus Falls Port Authority is awarded $851,510 in Demolition Loan funds to demolish a former dairy processing facility. This 29.14-acre site has potential for residential development. The Port Authority will issue a general obligation tax abatement bond to secure and repay the loan.

Local Contact: City of Fergus Falls, Brian Yavarow, 218-332-5413

Redevelopment Grant Program

Mankato - Bridge Plaza

The city of Mankato is awarded $170,850 in Redevelopment Grant funds for demolition, geotechnical soil correction, and infrastructure costs on this 1.94-acre site. The site will be redeveloped with a five-story, mixed-use building offering 25,969 square feet of commercial space and 14 apartments. It is anticipated the project will create 24 jobs, retain 108 jobs, and increase the tax base by $144,566. Matching costs will be paid by tax increment financing.

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

Minneapolis - Lake St. Apts. Phase I

The city of Minneapolis is awarded $230,750 in Redevelopment Grant funds for hazardous materials abatement, demolition, and infrastructure costs on this 0.52-acre site. The site will be redeveloped with a six-story, 111-unit apartment building offering 1,025 square feet of retail space. It is anticipated the project will create 6 new jobs and increase the tax base by $153,243. Matching costs will be paid by other grant sources.

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

Woodbury Redevelopment

The city of Woodbury is awarded $250,000 in Redevelopment Grant funds for demolition and infrastructure costs a 9.69-acre site near the intersection of Valley Creek Road and Woodland Drive. The site will be redeveloped with approximately 50,000 square feet of commercial/office space and a 120-room hotel. It is anticipated the project will create 258 new jobs and increase the tax base by $669,417. Matching costs will be paid by the developer.

Local Contact: City of Woodbury, Karl Batalden, 651-414-3438

Edina - 7200 - 7250 France Avenue

The city of Edina is awarded $500,000 in Redevelopment Grant funds for asbestos abatement, demolition, and infrastructure costs on this 5.18-acre site. This site will be redeveloped with two mixed-use buildings offering 301 apartments, 28,000 square feet of commercial space, and underground parking. It is anticipated the project will create 41 jobs, retain 18 jobs, and increase the tax base by $800,681. Matching costs will be paid by the developer.