Today, the Minnesota Department of Employment and Economic Development (DEED) announced $4.7 million in grants for eight redevelopment projects and one blighted land demolition loan.
This funding will help create or keep 278 jobs, boost local tax bases by $1.28 million, and attract $174.7 million in private investment. The grants and loans are expected to redevelop 21.99 acres and provide 264 housing units.
“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 supports communities in redeveloping blighted sites and making land useful again. The Demolition Loan Program helps remove unsafe buildings to prepare for new developments. Since starting in 1998, the Redevelopment Grant Program has awarded 262 grants totaling over $87.6 million.
These grants have helped create or maintain 30,805 jobs, attracted more than $3.7 billion in private investment, and built 8,991 housing units, 2,961 of which are affordable. The grants cover up to half of redevelopment costs for qualifying sites, requiring a 50% local match, and can help with land acquisition, demolition, infrastructure improvements, and environmental needs.
Redevelopment Grants
Bemidji – Rail Corridor Phase I
The city of Bemidji received $589,926 in Redevelopment Grant funds to demolish buildings and improve infrastructure on a 6.66-acre site. Once a rail corridor, it will be turned into a 60,000-square-foot community wellness center. The project is expected to create 77 jobs, boost the tax base by $30,000 through Payment in Lieu of Taxes (PILOT), and attract $35 million in private investment, with additional matching funds from the city.
Crookston – Red River Valley Winter Shows
The city of Crookston received $1,487,000 in grant funds for asbestos removal, demolition, and infrastructure on a 9.07-acre site. Once used for livestock shows, the land will be turned into a 7,000-square-foot credit union. The project is expected to create eight jobs, keep 12 jobs, raise the tax base by $50,553, and attract $7 million in private investment. Tax increment financing will provide matching funds.
Hibbing Economic Development Authority (EDA) – 400 Block Redevelopment
The Hibbing EDA received $407,000 in grant funds for asbestos removal and demolition on a 0.7-acre site. Two old structures that were used as apartments and restaurants will be replaced by a four-story building with 5,650 square feet of commercial space and 54 residential units. This project is expected to create 17 jobs, increase the tax base by $253,035, and attract $13.5 million in private investment. The city will also contribute matching funds.
Mankato – Hotel
The city of Mankato received $1,114,071 in Redevelopment Grant funds for demolishing and improving public infrastructure on a 2.03-acre site that was previously a hotel and auto dealership. This site will be turned into two hotels: a four-story hotel with 126 rooms and a 10-story hotel with 156 rooms and a restaurant. The project is expected to create 111 jobs, raise the property tax base by $566,738, and attract $80.9 million in private investment. Matching funds will come from tax increment financing and developer equity.
Maplewood – Gladstone Crossing
The city of Maplewood received $101,375 in Redevelopment Grant funds for demolition and improvements on a 1.23-acre site. Previously a church and a furniture store, this site will be turned into a mixed-use residential building with 40 affordable units and office space. The project is expected to create three jobs and raise the tax base by $32,083, with additional matching funds from other sources.
Northfield – Loon Liquor Development
The city of Northfield received $29,795 in grant funds to remove asbestos from a 0.30-acre site. Previously occupied by a media company, the building will be converted into a 7,200-square-foot craft distillery. This project is expected to create five jobs, maintain nine jobs, increase the tax base by $18,200, and attract $1 million in private investment. The city will cover the matching funds.
Red Wing – Fleischmann Maltery
The city of Red Wing received $746,500 in Redevelopment Grant funds for demolishing a 1.31-acre site, previously home to the Red Wing Malting Company and the Fleischmann Malting Company. The site will be transformed into a mixed-use building with 120 residential units, including 15 affordable ones, and 12,000 square feet of commercial space. This project is expected to create 35 jobs, increase the tax base by $195,410, and attract $30.1 million in private investment, with matching funds coming from the developer, tax increment financing, and the city.
Wabasha – Alleghany Apartments
The city of Wabasha received $166,528 for asbestos removal, demolition, and infrastructure improvements on a 0.54-acre site. Once a gas station and auto repair shop, the area will become a 50-unit affordable apartment building. This project is expected to create one job, increase the tax base by $135,767, and attract $7 million in private investment, with matching funds provided by tax increment financing.
Demolition Loan Program
Jackson – Coast Building
The city of Jackson received $156,230 in loan funds to remove asbestos and demolish a building on a 0.15-acre site. Previously a hardware store, this site could become a three-story mixed-use development. The city will issue a bond to secure the loan.
