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DEED awards redevelopment and demolition funds to 11 projects across Minnesota

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The Minnesota Department of Employment and Economic Development (DEED) awarded nearly $3.8 million to redevelop 11 sites in eight different cities, including a demolition grant throughout Minnesota. 

Redevelopment projects made possible through the grants are expected to create 136 new jobs and retain 130 jobs while providing more than 974 new housing units, 470 of which will be affordable housing units.  

“The redevelopment projects will be important drivers for Minnesota’s economic recovery,” said DEED Commissioner Steve Grove. “These grants will spark private investment and create new opportunities for industrial, commercial and housing development while creating new jobs and increasing the tax base for these communities.” 

The Redevelopment Grant Program helps communities with the cost of redeveloping blighted industrial, residential or commercial sites. Grants pay up to half the redevelopment costs for a qualifying site, with a minimum 50% local match required. 

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

Since its creation in 1998, the Redevelopment Grant Program has made 214 grant awards, which have helped fund projects that created or retained more than 28,000 jobs and generated nearly $50 million in tax revenue. 


Battle Lake – Hatchery Row 

The city of Battle Lake is awarded $174,900 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 0.58-acre site. Formerly a feed mill and hatchery, this site will be redeveloped into a three-story, 15-unit apartment building with 12,000 square feet of commercial space. It is anticipated this project will create 10 jobs, increase the tax base by $87,946, and leverage $4.4 million of private investment. Matching funds will be paid by the city. 


Burnsville – Astleford Industrial 

The city of Burnsville is awarded $450,000 in Redevelopment Grant funds for soil stabilization and public infrastructure improvements on this 16.63-acre site. Currently used for soil processing and landscaping materials storage, this site will be redeveloped into two 115,880 square foot office/warehouse buildings. It is anticipated this project will create 70 jobs, retain 130 jobs, increase the tax base by $102,091, and leverage $3.4 million of private investment. Matching funds will be provided by tax increment financing. 


Delano – Granite Works Redevelopment 

The city of Delano is awarded $351,361 in Redevelopment Grant funds for public acquisition, demolition, soil stabilization, and public infrastructure improvements on this 2.93-acre site. Formerly used as a sawmill and a granite mill, this site will be redeveloped into a 30,000 square foot, 70-unit apartment building. This site is Phase I of a 17.41-acre development. It is anticipated this project will create three jobs, increase the tax base by $102,091, and leverage $14.5 million of private investment. Matching funds will be provided by the city. 


Minneapolis – Agra Apartments 

The city of Minneapolis is awarded $193,500 in Redevelopment Grant funds for demolition and infrastructure improvements on this 0.99-acre site. Formerly used as a restaurant, this site will be redeveloped into a seven-story, 175-unit affordable apartment building with a commercial development on the first floor. It is anticipated this project will create seven jobs, increase the tax base by $257,683, and leverage $40.6 million of private investment. Matching funds will be provided by other grant sources. 


Minneapolis – Currie Commons 

The city of Minneapolis is awarded $500,000 in Redevelopment Grant funds for soil stabilization, stormwater management, and public infrastructure improvements on this 1.66-acre site. Formerly used as a waste recycling facility by Warden Oil Company, this site will be redeveloped into a six-story, 187-unit apartment building, with 95% of affordable units. It is anticipated this project will create three jobs, increase the tax base by $343,901, and leverage $48 million of private investment. Matching funds will be paid by the developer and other grant sources. 


Minneapolis – Satori Apartments 

The city of Minneapolis is awarded $402,500 in Redevelopment Grant funds for abatement, demolition, stormwater management, and public infrastructure improvements on this 1.09-acre site. Currently occupied by two commercial buildings with various past uses and a single-family home, this site will be redeveloped into a six-story, 112-unit apartment building with 2,996 square feet of commercial space. It is anticipated this project will create eight jobs, increase the tax base by $308,991, and leverage $27.5 million of private investment. Matching funds will be provided by tax increment financing, the developer, and other grant sources. 


Minneapolis – Snelling Yards 

The city of Minneapolis is awarded $259,945 in Redevelopment Grant funds for abatement, demolition, stormwater management, and public infrastructure improvements on this 1.74-acre site. Currently occupied by a city public works building, this site will be redeveloped into a 100-unit senior apartment building. This site is Phase I of a 3.61-acre development. It is anticipated this project will create three jobs, increase the tax base by $175,338, and leverage $12.5 million of private investment. Matching funds will be provided by tax increment financing. 


Slayton – Golden Living Center 

The city of Slayton is awarded $105,678 in Redevelopment Grant funds for abatement and demolition on this 2.70-acre site. Formerly used as a nursing home, this site will be redeveloped into an 18,000 square foot, 24-bed assisted living and memory care facility. It is anticipated this project will create 24 jobs, increase the tax base by $11,716, and leverage $2.7 million of private investment. Matching funds will be paid by the city and tax increment financing. 


South St. Paul – The Yards 

The South St. Paul EDA is awarded $522,991 in Redevelopment Grant funds for abatement, demolition, and infrastructure improvements on this 4.4-acre site. Currently occupied by a commercial building, this site will be redeveloped into a 154-unit apartment building in Phase I and a 109-unit apartment building in Phase II. It is anticipated this project will create seven jobs, increase the tax base by $574,800, and leverage $55.1 million of private investment. Matching funds will be provided by the developer and tax increment financing. 


Windom – Cemstone Redevelopment 

The city of Windom is awarded $424,905 in Redevelopment Grant funding for demolition of a 15-acre site. Formerly used as a cement plant, this site will be redeveloped into several housing offerings including 10 single-family lots, two duplex lots, and a 25-unit apartment building. This site is Phase I of a 34-acre development. It is anticipated this project will create one job, increase the tax base by $61,611, and leverage $5 million of private investment. Matching funds will be paid by the city and tax increment financing. 


Blackduck – Main Street Commercial 

The city of Blackduck is awarded $164,872 in Demolition Loan funds for abatement and demolition on this 0.19-acre site. Currently occupied by three commercial buildings with a history of various uses, this site has the potential for updated commercial development. Blackduck plans to issue a general obligation bond in order to repay and secure the loan. 

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