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DEED Announces $2.15 Million in Contamination Cleanup Grants

The grants are expected to create or retain more than 100 jobs in six Minnesota communities

St. Paul – Today, the Minnesota Department of Employment and Economic Development (DEED) announced nearly $2.15 million in Contamination Cleanup and Investigation grants awarded to six communities statewide. The grants will help the awarded communities assess and clean up contaminated sites for private or public redevelopment and create or retain more than 100 jobs.

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.

This round of grants will lead to the investigation or clean up of nearly 27 acres and is expected to add almost $2 million to the local tax bases, create 461 housing units and leverage more than $169 million in private investment.

“Assessing and cleaning up blighted land for redevelopment are catalysts for further growth and prosperity in our communities,” said DEED Commissioner Matt Varilek. “This grant program is just one way DEED supports and uplifts Minnesota communities.”

Since its inception in 1993, the Contamination Cleanup and Investigation Grant Program has awarded over $207 million in grants, which helped assess and clean up 4,065 acres of land – contributing to the creation or retention of 52,030 jobs and clearing the way for 26,660 new housing units. The program has also leveraged over $10 billion in private investments and added over $150 million to local tax bases.

Details for individual projects below:

City of Albert Lea – Convenience Store and Filling Station

The city of Albert Lea is awarded $130,527 for a 3.66-acre site contaminated with petroleum and other contaminants. Located in a central area of Albert Lea in the city’s Blazing Star Landing redevelopment district, the site previously was the location of a meat-packing facility for almost 100 years. That plant burned down in 2001 and the Blazing Star area has remained mostly vacant for decades due to soil contamination costs and related remediation costs. This site, the fourth phase of projects in the Farmland Foods area, will be redeveloped into a 9,100-square-foot convenience store with multiple filling pumps and a car wash. This project is anticipated to create or retain 19 jobs, increase the local tax base by $54,824 and leverage $8.7 million of private investment. The city will provide matching funds.

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

City of Maplewood – Gladstone Village

The city of Maplewood is awarded $402,603 for a 1.58-acre site contaminated with petroleum and other contaminants. Previous site occupants have included a gas station, a power equipment business and a funeral home. The site -- located adjacent to a high-traffic Metro Transit bus route that facilitates access to downtown St. Paul, many large employers and nearby hospitals parks and shopping -- will be cleaned up and redeveloped into a four-story, 65-unit, affordable apartment building that will help increase the city’s affordable housing availability. This project is anticipated to create five jobs, increase the local tax base by $27,102, and leverage $18.9 million of private investment. The developer and other grant sources will provide matching funds.

Local contact – Michael Martin, City of Maplewood (651) 249-2303

City of Minneapolis – O’Shaughnessy Distillery Expansion

The city of Minneapolis is awarded $394,411 for a 1.2-acre site contaminated with petroleum and other contaminants from previous occupants, which have included railroad tracks, a blacksmith, automotive repair and outdoor storage. This site will be redeveloped into a 24,242-square-foot warehouse with offices for business expansion. The project is anticipated to create or retain 26 jobs, increase the local tax base by $120,268 and leverage $4 million of private investment. The developer and other grant sources will provide matching funds.

Local contact – Kevin Carroll, City of Minneapolis (651) 983-6384

City of Newport – Red Rock Villas

The city of Newport is awarded $418,500 for a 8.42-acre site contaminated with petroleum and other contaminants. Located along Seventh Avenue near the Glen Road interchange, the site was historically occupied with a mix of residential and commercial/industrial uses, and most recently has been used for office and semi-truck/trailer parking. It will be redeveloped into four multi-unit apartment buildings with a total of 143 units. This project is anticipated to create 11 jobs, increase the local tax base by $683,334 and leverage $56.6 million of private investment. The developer and other grant sources will provide matching funds.

Local contact – Joe Hatch, City of Newport (651) 566-4600

St. Paul Port Authority – Wire Mill Expansion and Upgrade

The St. Paul Port Authority is awarded $178,075 for a 1-acre site contaminated with heavy metals. Located in the organization’s Riverview Business Center, the site was historically occupied by a mix of residential and industrial uses. It will be redeveloped into a 30,000 square-foot industrial building as an expansion for a long-time nearby business. The project is anticipated to create or retain 24 jobs, increase the local tax base by $71,875 and leverage nearly $8.5 million of private investment. The developer and other grant sources will provide matching funds.

Local contact – Rick Howden, St. Paul Port Authority (651) 204-6223

City of Shoreview – Rice Street Crossing

The city of Shoreview is awarded $624,693 for a 10.99-acre site contaminated with petroleum and other contaminants. Located at the southwest quadrant of I-694 and Rice Street and the confluence of Little Canada, Shoreview and Vadnais Heights, the property previously was a Ramsey County Public Works facility. The three cities have planned and implemented redevelopment around the interchange to replace obsolete or blighted commercial properties with higher density housing and newer retail services. The Rice Street Crossing site will be redeveloped into a four-story, 253-unit apartment building (51 affordable units) and a 10,000 square-foot commercial/retail building. This project is anticipated to create 20 jobs, increase the local tax base by $1,007,234 and leverage nearly $72.4 million of private investment. The developer and other grant sources will provide matching funds.

Local contact – Niki Hill, City of Shoreview (651) 490-4658

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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