Awards will fund housing, business and community service development projects
10/8/2019 7:35:40 AM
Contact: Eric Lightner
St. Paul – The Minnesota Department of Employment and Economic Development (DEED) today announced more than $2 million in grants and loans awarded from the Redevelopment Grant and Demolition Loan Program.
DEED awarded four Redevelopment Grants to Alexandria, Minneapolis, Plymouth and Renville, and three Demolition Loans to Beaver Bay, Herman, and Springfield.
“These awards will generate more than $250 million in private investment and are expected to create 190 new jobs,” said Governor Tim Walz. “These grants and loans allow developers to take previously unused sites and turn them into high-demand housing, employment, and services developments.”
“Redevelopment is a costly and time consuming process,” said DEED Commissioner Steve Grove. “We want to make sure that communities across the state have access to this program. That’s why we’ll have an additional grant round – with nearly $4 million available – in the early part of 2020.”
The Redevelopment Grant Program helps communities with the cost of redeveloping blighted industrial, residential or commercial sites for planned projects. Grants pay up to half the redevelopment costs for a qualifying site, with 50% local match required.
The program statute has specific criteria to rank projects including the redevelopment potential within the municipality, the overall need and 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 awarded 182 grants totaling near $70 million in funds. These projects have reclaimed nearly 1,400 acres and created or retained over 28,000 jobs. Read more about the Redevelopment Program on the DEED website.
The Demolition Loan Program helps development officials with the costs of demolishing old blighted buildings on sites that have future development potential but where there are no current development plans. Low-interest loans can pay up to 100% of the demolition costs for a qualifying site and can be used for site acquisition costs. Go to the DEED website for more details about the Demolition Loan Program.
Details of the most recent grant round are below with redevelopment renderings when available:
Alexandria EDA – GoodNeighbor Properties
The Alexandria Economic Development Authority was awarded $350,000 in Redevelopment Grant funds for demolition and infrastructure improvements on this 2.31-acre site. This site will be redeveloped to a four-story, mixed-use building offering 23,450 square feet of retail and professional space, 75 apartments and one level of underground parking. It is anticipated this project will create 37 jobs and increase the tax base by $209,847. Matching funds will be provided by tax increment financing and the developer.
Local Contact: Alexandria EDA, Nicole Fernholz, 320-763-4545
Photo of Alexandria project
Minneapolis – Checkerboard
The city of Minneapolis was awarded $600,000 in Redevelopment Grant funds for demolition on this 2.07-acre site. This site will be redeveloped with 500 rental housing units, 125 of which will be affordable, and 19,000 square feet of commercial space. It is anticipated that this project will create 27 new jobs and increase the tax base by $1,151,557. Matching funds will be paid by the developer.
Local Contact: City of Minneapolis, Kevin Carroll, 612-673-5181
Photo of Minneapolis project.
Plymouth – Four Seasons Mall Redevelopment
The city of Plymouth was awarded $637,450 in Redevelopment Grant funds for asbestos abatement, demolition, and infrastructure costs on this 17.3-acre site. This site will be redeveloped with 255 units of senior housing and 163 units of multi-family rental housing, plus retail and green space. It is anticipated that this project will create 112 new jobs and increase the tax base by $612,544. Matching funds will be paid by tax increment financing and the developer.
Local Contact: City of Plymouth, James Barnes, 763-509-5412
Photo of Minneapolis project.
Renville – Medical Complex
The city of Renville was awarded $49,435 in Redevelopment Grant funds for asbestos abatement, demolition, and sidewalk replacement on this 1.3-acre site. This site will be redeveloped with an approximately 5,000 square foot county-owned clinic. It is anticipated this project will create 4 jobs and retain 5 jobs. Matching funds will be provided by the city.
Local Contact: City of Renville, Shane Wohlman , 320-329-8366
Photo of Renville project.
Beaver Bay – Motel/Apartment Complex Loan
The city of Beaver Bay was awarded $300,000 in Demolition Loan funds for the demolition of a former motel and apartment building. This 3.2-acre site has the potential for a commercial or residential development. The city will issue a general obligation bond to secure the loan.
Local Contact: City of Beaver Bay, Tim Anderson, 218-226-3251
Herman EDA – Herman Locker Plant
The Herman Economic Development Authority (EDA) is awarded $80,000 in Demolition Loan funds for the abatement and demolition of the former Herman Locker Plant. This 0.138-acre site has the potential for commercial development. The EDA will issue a general obligation bond to secure the loan.
Local Contact: Herman EDA, Dan Ellison, 320-760-3323
Springfield EDA – 30 South Case Avenue
The city of Springfield was awarded $111,426 in Demolition Loan funds for the demolition of three grain elevators. This 0.37-acre site has the potential for commercial development. The city will issue a revenue bond to secure the loan.
Local Contact: Springfield EDA, Joe Stremcha , 507-723-3500
DEED is the states 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 theDEED website or follow DEED on Twitter.