The Minnesota Department of Employment and Economic Development (DEED) announced $4.7 million in land redevelopment grant funding for eight projects statewide and one blighted land demolition loan. The grant funding will create or retain 278 jobs, collectively increase local tax bases by $1.28 million and leverage $174.7 million in private investment.
The eight grants from DEED’s Redevelopment Grant Program and one loan from the Demolition Loan Program are expected to redevelop 21.99 acres and establish 264 units of housing.
“The Redevelopment Grant Program is a great tool communities can use to develop previously unusable land into businesses and housing that support local economic growth and the community,” said DEED Commissioner Matt Varilek. “By creating and retaining jobs, this program promotes local workforce development as well as economic growth.”
The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use. The Demolition Loan Program helps communities with the removal of dilapidated or unsafe structures to prep sites for future development.
Since its inception in 1998, the Redevelopment Grant Program has made 262 awards worth more than $87.6 million in grants funding. These funds have created or retained 30,805 jobs, attracted over $3.7 billion in private investment and created 8,991 housing units – 2,961 of which are considered affordable.
Redevelopment grants pay up to half of the redevelopment costs for qualifying sites, with a 50% local match. They can assist with the cost of public land acquisition, building and site demolition, infrastructure improvements, soil stabilization and ponding or other environmental infrastructure.
Redevelopment Grants:
Crookston – Red River Valley Winter Shows
The city of Crookston was awarded $1,487,000 in Redevelopment Grant funds for asbestos abatement, demolition and public infrastructure on this 9.07-acre site. Formerly an arena for livestock and agricultural shows, the site will be redeveloped into a 7,000-square-foot credit union. It is anticipated this project will create eight jobs, retain 12 jobs, increase the tax base by $50,553 and leverage $7 million of private investment. Matching funds will be provided by tax increment financing.
Bemidji – Rail Corridor Phase I
The city of Bemidji was awarded $589,926 in Redevelopment Grant funds for demolition and public infrastructure on this 6.66-acre site. Formerly a rail corridor with related commercial buildings, the site will be redeveloped into a 60,000-square-foot community wellness center. It is anticipated this project will create 77 jobs, increase the tax base by $30,000 through Payment in Lieu of Taxes (PILOT) payments and leverage $35 million of private investment. Matching funds will be provided by the city.
Hibbing Economic Development Authority (EDA) – 400 Block Redevelopment
The Hibbing EDA was awarded $407,000 in Redevelopment Grant funds for asbestos abatement and demolition on this 0.7-acre site. The two structures—formerly used as apartments, commercial storefronts, and most recently as restaurants—will be demolished and redeveloped as a four-story multi-use building with 5,650 square feet of commercial space and 54 residential units. It is anticipated this project will create 17 jobs, increase the tax base by $253,035 and leverage $13.5 million of private investment. Matching funds will be provided by the city.
Mankato – Hotel
The city of Mankato was awarded $1,114,071 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 2.03-acre site. Historically used as a hotel and auto dealership, this site will be redeveloped into two hotels: a four-story, 126-room hotel and a 10-story, 156-room hotel with a restaurant. It is anticipated the project will create 111 jobs, increase the property tax base by $566,738 and leverage $80.9 million of private investment. Matching funds will be provided by tax increment financing and developer equity.
Maplewood – Gladstone Crossing
The city of Maplewood was awarded $101,375 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 1.23-acre site. Formerly a church and most recently a furniture store and parking lot, this site will be redeveloped into a mixed-use residential building with 40 affordable units with office space. It is anticipated this project will create three jobs and increase the tax base by $32,083. Matching funds will be provided by additional grant sources.
Northfield – Loon Liquor Development
The city of Northfield was awarded $29,795 in Redevelopment Grant funds for asbestos abatement on this 0.30-acre site. Formerly used by a media company, the existing building will be renovated into a 7,200-square-foot craft distillery. It is anticipated this project will create five jobs, retain nine jobs, increase the tax base by $18,200 and leverage $1 million of private investment. Matching funds will be paid by the city.
Red Wing – Fleischmann Maltery
The city of Red Wing was awarded $746,500 in Redevelopment Grant funds for demolition on this 1.31-acre site. Formerly the Red Wing Malting Company and the Fleischmann Malting Company, the site will be redeveloped as a mixed-use building with 120 residential units – 15 of which will be affordable – and 12,000 square feet of commercial space. It is anticipated this project will create 35 jobs, increase the tax base by $195,410 and leverage $30.1 million of private investment. Matching funds will be provided by the developer, tax increment financing, and the city.
Wabasha – Alleghany Apartments
The city of Wabasha was awarded $166,528 in Redevelopment Grant funds for asbestos abatement, demolition and public infrastructure improvements on this 0.54-acre site. Formerly used as a gas station and auto repair shop, the site will be redeveloped into a 50-unit affordable apartment building. It is anticipated this project will create one job, increase the tax base by $135,767 and leverage $7 million of private investment. Matching funds will be paid by tax increment financing.
Demolition Loan Program
Jackson – Coast Building
The city of Jackson was awarded $156,230 in Demolition Loan funds for asbestos abatement and building demolition on this 0.15-acre site. Formerly used as a hardware store, this site has the potential for a three-story mixed-use development. The city will issue an abatement bond to secure the loan.
