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DEED Awards $3.9 Million in 10 Contamination Cleanup Grants Across Minnesota

 

January 20, 2021



St. Paul – The Minnesota Department of Employment and Economic Development (DEED) awarded $3.98 million in grants to nine cities across Minnesota to cleanup 10 contaminated sites approved for redevelopment.

DEED’s Contamination Cleanup Grant Program awarded the funding, which will leverage more than $300 million in private investment and create or retain 178 jobs. The redevelopment projects are expected to add 1,485 housing units, of which 373 units will be affordable housing. Local tax bases are expected to increase by $3.9 million through redevelopment of the sites.

“DEED’s Contamination Cleanup Grants play a critical role in the health and vitality of our communities, especially in Greater Minnesota,” said DEED Commissioner Steve Grove. “When you also factor in the 178 jobs created and retained — these are important investments in Minnesota’s families and workers.”

DEED’s Contamination Cleanup Grants cover up to 75% of the costs of removing contamination at approved polluted sites. The remaining costs are covered by cities and counties, other units of local government and private landowners and developers.

Since its inception in 1993, the Contamination Cleanup Grant Program has awarded over $195 million in grants, which paid for assessment and cleanup of 3,792 acres of land, allowed for the creation or retention of nearly 50,500 jobs and cleared the way for 23,806 new housing units. The program has also leveraged over $8.6 billion in private investments and added over $138 million to local tax bases.

Go to the DEED website for more information on the Contamination Cleanup and Investigation Grants Program.

See details on individual projects below:

Albert Lea – Blazing Star Apartments

The city of Albert Lea is awarded $1,443,100 in cleanup funding for this 3.41-acre site contaminated with petroleum and other contaminants. Historically a part of the river channel, this site is part of a larger 33.29-acre former meat packing plant which burned down in 2001. The site will be redeveloped into a three-story, 48-unit apartment building. It is anticipated this project will create one new job and increase the tax base by $21,042. Matching funds will be provided by the city of Albert Lea.

Local contact – Steven Jahnke, City of Albert Lea (507) 377-4325

Delano – Granite Works

The city of Delano is awarded $385,044 in cleanup funding for this 7.98-acre site contaminated with petroleum and other contaminants. Former uses include a flour mill, granite mill, appliance recycling, equipment repair, and an auto dealership. This site will be redeveloped into three 30,000-square-foot affordable, senior, and market-rate apartment buildings. It is anticipated this project will create eight jobs and increase the tax base by $365,417. Matching funds will be provided by the city of Delano.

Local contact – Phil Kern, City of Delano (763) 972-0565

Hopkins – Blake Road Station Apartments – Phase A

The city of Hopkins is awarded $340,521 in cleanup funding for this 1.55-acre site contaminated with petroleum and other contaminants. Former and current site uses include a commercial building occupied by several retail and health care businesses, a farmstead, boat shop, and paint booth. This site will be redeveloped into a seven-story, 220-unit apartment building with 2,000 square feet of commercial space. It is anticipated this project will create seven jobs and increase the tax base by $951,345. Matching funds will be provided by the developer.

Local contact – Jan Youngquist, City of Hopkins (952) 548-6343

Mankato – Riverfront OZ Redevelopment

The city of Mankato is awarded $33,908 in investigation funding for this 6.78-acre site. Former uses include a timber and cattle yard, railroad passenger depot, creamery, coal and freight sheds, tire sales and service, veterinarian clinic, and a cabinet factory. The site is currently occupied by a 35,000-square-foot grocery store. It will be redeveloped into a six-story, 66-unit apartment building with 7,200 square feet of commercial space, a 1,625-square-foot coffee shop, and a new 45,000-square-foot grocery store. It is anticipated this project will create 29 jobs, retain 85 jobs, and increase the tax base by $220,649. Matching funds will be provided by the developer.

Local contact – Courtney Kramlinger, City of Mankato (507) 387-8711

Minneapolis – Currie Commons

The city of Minneapolis is awarded $199,135 in cleanup funding for this 1.66-acre site contaminated with petroleum and other contaminants. Historically occupied by Warden Oil Company, a waste oil recycling facility, and adjacent to the former Leef Brothers dry cleaning operation, this site will be redeveloped into a six-story, 187-unit affordable apartment building. It is anticipated this project will create three jobs and increase the tax base by $343,901. Matching funds will be provided by the developer and other grant sources.

Local contact – Kevin Carroll, City of Minneapolis (612) 673-5181

Minneapolis – Lake Street Housing Phase II

The city of Minneapolis is awarded $84,051 in cleanup funding for this 0.52-acre site contaminated with petroleum and other contaminants. Historically used as dry cleaner, sheet metal contractor, and residential homes, this site will be redeveloped into a seven-story, 111-unit apartment building with 1,699 square feet of retail space. It is anticipated this project will create eight new jobs and increase the tax base by $430,245. Matching funds will be provided by the developer and other grant sources.

Local contact – Kevin Carroll, City of Minneapolis (612) 673-5181

Moorhead – Vanné Property

The city of Moorhead is awarded $139,157 in cleanup funding for this 1.04-acre site contaminated with petroleum and other contaminants. Historically used for a residence, and later a gravel lot used to stockpile concrete aggregate, vehicles and equipment, this site will be redeveloped into a five-story, 33-unit apartment building with 10,118 square feet of commercial space. It is anticipated this project will create 14 new jobs and increase the tax base by $117,122. Matching funds will be provided by the developer.

Local contact – Amy Thorpe, City of Moorhead (218) 299-5442

Rochester – Bryk Apartments

The city of Rochester is awarded $853,338 in cleanup funding for this 1.18-acre site contaminated with petroleum and other contaminants. Historically used for multiple residential and commercial purposes, such as a dry cleaner, automotive repair facilities, and coal storage, this site will be redeveloped into a six-story, 165-unit apartment building with an entire floor of commercial space. It is anticipated this project will create 10 new jobs and increase the tax base by $193,884. Matching funds will be provided by the developer.

Local contact – Brent Svenby, City of Rochester (507) 328-2003

South St. Paul EDA – The Yards

The South St Paul EDA is awarded $388,911 in cleanup funding for this 4.29-acre site contaminated with petroleum and other contaminants. Historically used as a gas station, auto service, and concrete block manufacturer, this site will be redeveloped into two six-story, multi-family apartment buildings with a total of 263 units. It is anticipated this project will create seven new jobs and increase the tax base by $577,401. Matching funds will be provided by the developer and other grant sources.

Local contact – Ryan Garcia, City of South St. Paul (651) 554-3278

St. Paul – The Alvera

The city of St. Paul is awarded $119,492 in cleanup funding for this 0.58-acre site contaminated with petroleum and other contaminants. Historic uses include residential dwellings, a convenience store, and most recently, an auto repair garage. This site will be redeveloped into a seven-story, 192-unit apartment building with 1,400 square feet of retail space. It is anticipated this project will create six jobs and increase the tax base by $748,082. Matching funds will be provided by the developer.

Local contact – Josh Williams, City of St. Paul (651) 266-6659

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.

 

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