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DEED Awards $1.4M for Redevelopment, Demolition Projects

March 20, 2014

Madeline Koch, 651-259-7236

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) awarded two redevelopment grants and two demolition loans for projects that are expected to create and retain 84 jobs, increase the tax base by more than $870,000 and result in commercial development.

More than $1 million in grants were awarded under the agency’s Redevelopment Grant Program to prepare blighted sites that will be redeveloped in Fosston and St. Paul. Governor Mark Dayton and the Minnesota Legislature invested $6 million in this program during the 2013 legislative session. 

In addition, two loans totaling $468,500 were awarded under the Demolition Loan Program. This program assists with demolition activities when future redevelopment of a property is hindered by blight or hazardous conditions or public safety concerns exist. 

“The Redevelopment Grant Program has stimulated economic development and helped generate thousands of jobs in Minnesota since the program was created 15 years ago,” said DEED Commissioner Katie Clark Sieben. “The latest round of funding will contribute to the development of market-rate apartments, hotel and restaurant, businesses and business office space in the state and set the stage for future development.” 

The program helps cities, counties and other units of government pay for up to 50 percent of the cost of redeveloping blighted industrial, residential or commercial properties. The grants can be used to pay for demolition, infrastructure and other project-related improvements. Recipients must provide matching funds. 

Since its inception in 1998, the Redevelopment Grant Program has awarded more than $62 million, funded 152 projects statewide and reclaimed 1,212 acres of blighted property. The program has created 9,170 jobs, retained 9,825 existing jobs and generated $27.5 million in new tax revenue. The program has attracted $1.7 billion in private investment and led to the creation of 2,799 units of market-rate housing and 1,824 units of affordable housing. 

Redevelopment Grant Program Awards, March 2014

City of Fosston, Johnson Avenue Project, $277,500
The city of Fosston received $277,500 in redevelopment funds for demolition and public infrastructure on the .64-acre Johnson Avenue Project site. The site had various commercial uses and will be developed with three buildings, including a financial business, chiropractic office and general office. The new development is expected to create 14 new jobs, retain five jobs and increase the tax base by $11,617.
Local contact: City of Fosston, Chuck Lucken, 218-435-1959

City of St. Paul, Custom House, $725,000
The city of St. Paul received $725,000 in redevelopment funding for interior abatement and limited public infrastructure on the 1.67-acre site that was formerly a U.S. Post Office. The site will be redeveloped into a mixed-use facility including 200 market-rate apartments, 150-room hotel, restaurant, self storage, public space and parking. The project is expected to result in 65 new jobs and increase the tax base by $860,000.
Local contact: City of St. Paul, Diane Nordquist, 651-266-6640

Demolition Loan Program Awards, March 2014

  City of Glencoe, Economart Building, $93,500
The city of Glencoe has been awarded $93,500 in Demolition Loan funds for abatement and demolition of a former grocery store. The .86-acre site has office and commercial development potential.
Local contact: City of Glencoe, Mark Larson, 320-864-5586

City of Ogilvie, Old Ogilvie School, $375,000
The city of Ogilvie was awarded $375,000 in Demolition Loan funds for the abatement and demolition of a former K-12 school. The 4.4-acre site has housing and commercial development potential.   
Local contact: City of Ogilvie, Greg Lerud, 320-272-4822

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 our services, visit us at us on Twitter at




Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.