Red Lake Nation News - Babaamaajimowinan (Telling of news in different places)

DEED Awards More than $3.08 Million in Grants and Loans to Restore Blighted Lands to Productive Use

 

April 21, 2022

St. Paul – The Minnesota Department of Employment and Economic Development (DEED) awarded more than $3.08 million in grants and loans to aid in the redevelopment of blighted or dilapidated properties.

"These grants are an excellent tool for turning previously unusable sites into space for future businesses," said DEED Commissioner Steve Grove. "In partnership with forward-thinking cities, the awards will spark future business growth in nine communities across Minnesota."

The grants and loans are expected to create 263 jobs and retain 224 jobs in nine Minnesota communities. Eight of these projects are Redevelopment Grants Program awards that help communities with the cost of redeveloping blighted industrial, residential or commercial sites.

The ninth project is funded by the Demolition Loan Program with an award of $109,900. The Demolition Loan Program assists communities with the removal of dilapidated or unsafe structures to prep sites for future development.

Details for all nine projects are listed below:

Redevelopment Grant Program

Bloomington – Gyropolis Investments, LLC

The city of Bloomington is awarded $58,400 in Redevelopment Grant funds for demolition and infrastructure improvements on this 0.74-acre site. Formerly used for retail and as a service station, the site will be redeveloped into a 1,300 sq. ft. expansion of an adjacent existing restaurant. The project is anticipated to create 10 jobs, retain 18 jobs, increase the tax base by $23,302, and leverage $1.3 million in private investment. Matching funds will be provided by tax increment financing and the developer.

Local contact – Barbara Wolff, (952) 563-4706

Browns Valley – ToughAg Redevelopment

The City of Browns Valley is awarded $117,000 in Redevelopment Grant funds for demolition, asbestos abatement, and public infrastructure improvements on this 0.28-acre site. Historically used as commercial, office, and residential space, this site will be redeveloped into a 10,600 sq. ft. warehouse, distribution and office space. The project is anticipated to create five jobs, retain seven jobs, increase the tax base by $22,899, and leverage over $2.5 million in private investment. Matching funds will be provided by tax increment financing.

Local contact – Jodi Hook-Hansen, (320) 695-2110

Duluth Economic Development Authority – Historic Duluth Armory

The Duluth Economic Development Authority (DEDA) is awarded $672,918 in Redevelopment Grant funds for abatement and building demolition on this 1.81-acre site. Historically used by the Naval Militia and National Guard, and vacant for nearly 20 years, the 93,217 sq. ft. building will be renovated and repurposed with shared commercial kitchen, food hall and brewery, entertainment, training and exhibit space, and leasable office space. The project is anticipated to create 26 jobs, retain 37 jobs, increase the tax base by $279,055, and leverage $13.7 million in private investment. Matching funds will be provided by the developer.

Local contact – Chris Fleege, (218) 730-5297

Edina – 7001 France Avenue

The city of Edina is awarded $650,000 in Redevelopment Grant funds for abatement, demolition, and infrastructure improvements on this 5.7-acre site. Historically part of a gravel and sand pit, then used for office, this site will be redeveloped into a 24-story, 267-unit apartment building, a seven-story office/retail building totaling 293,000 sq. ft., an 8-story parking garage, and a 6,000 sq. ft. bank. The project is anticipated to create 143 jobs, retain 126 jobs, increase the tax base by $4,062,918, and leverage over $228 million of private investment. Matching funds will be provided by the developer.

Local contact – Scott Neal, (952) 826-0401

Faribault – Farmer Seed and Nursery

The city of Faribault is awarded $611,455 in Redevelopment Grant funds for demolition, abatement and geotechnical soil corrections on this 1.3-acre site. Formerly used for a seed and nursery, the site will be redeveloped into 60 apartments and 48,470 sq. ft. of climate-controlled storage. The project is anticipated to create two jobs, increase the tax base by $151,429, and leverage $10.6 million in private investment. Matching funds will be provided by tax increment financing and the developer.

Local contact – Deanna Kuennen, (507) 333-0376

Mankato – Range Street Redevelopment

The City of Mankato is awarded $299,479 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 6.6-acre site. Formerly occupied industrial and commercial uses, this site will be redeveloped into two, four-story mixed-use buildings including 104 residential units and 20,000 sq. ft. of commercial space and a separate 4,000 sq. ft. commercial building. The project is anticipated to create 14 jobs, increase the tax base by $306,916, and leverage $21.4 million in private investment. Matching funds will be paid by the developer.

Local contact – Courtney Kramlinger (507) 387-8711

Monticello Economic Development Authority – Block 52 Redevelopment

The Monticello Economic Development Authority is awarded $517,500 in Redevelopment Grant funds for asbestos abatement, demolition, and public infrastructure improvements on this 2.09-acre site. Historically used for multiple commercial purposes, the site will be redeveloped into a five-story, 87-unit housing complex with 10,500 sq. ft. of office space and approximately 20,000 sq. ft. of ground level commercial. The project is anticipated to create 45 jobs, retain 36 jobs, increase the tax base by $284,510, and leverage $26.3 million in private investment. Matching funds will be provided by the developer, local sources, tax increment financing and other grant sources.

Local contact – Jim Thares (763) 271-3254

St Paul – 176 South Robert Street

The city of St. Paul is awarded $158,196 in Redevelopment Grant funds for demolition on this 2.86-acre site. Historically used for multiple commercial purposes and most recently a blood donation center, this site will be redeveloped into a 5-story mixed-use building with 178 affordable units and 9,561 sq. ft. of commercial space. The project is anticipated to create 18 jobs, increase the tax base by $314,316, and leverage $60.4 million in private investment. Matching funds will be provided by the developer.

Local contact – Marylin Rosendahl (651) 266-6702

Demolition Loan Program:

Minnesota Statute § 116J.571 gives DEED the authority to award loans under the Demolition Loan Program. This program runs at the same time and funds are awarded from the same account as the Redevelopment Grant Program. The Demolition Loan Program assists communities with the removal of dilapidated, unsafe structures to prepare the site for a future, unnamed development. This round, DEED awarded one Demolition Loan to the City of Winnebago, in the amount of $109,900. To date, 13 Demolition Loans have been awarded totaling over $2.4 million in loan awards and reclaiming 39 acres of blighted property.

City of Winnebago - SuperValu

The City of Winnebago is awarded $109,900 in Demolition Loan funds for abatement and demolition of the former SuperValu grocery store. This 0.25-acre site has the potential for a mixed-use, multi-building development. The City plans to issue an abatement bond to secure and repay the loan.

Local contact – Angie Stier, (612) 799-8129

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, the JoinUsMn.com website, or follow us on Twitter.

 

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