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DEED Awards $2.1 Million in Redevelopment Grants

9/28/2022 8:09:55 AM

St. Paul – The Minnesota Department of Employment and Economic Development (DEED) awarded $2,131,262 million in grants to five projects in the August round of the Redevelopment Grant Program. This program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use.

“In partnership with these five forward-thinking cities, these redevelopment awards will spark future business growth across Minnesota,” said DEED Commissioner Steve Grove. “These grants are an important tool for turning previously unusable sites into opportunities for growth – whether it be business, housing or new projects that will accelerate the ability of communities to thrive.”

The grants awarded in the August 2022 round are expected to create 78 jobs and retain 466 jobs in five Minnesota communities. They will lead to the redevelopment of 50 acres, and the construction of 540 housing units – 136 of which will be affordable. The grants will also support a tax base increase of $2,982,130 and leverage $210,676,976 of private investment.

Funding through the Redevelopment Grant Program helps communities redevelop blighted industrial, residential, or commercial sites and put that land back into productive use. Grants pay up to half of the redevelopment costs for a qualifying site, with a 50% local match. Eligible applicants are cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities. Created in 1998, the program has made 235 grant awards, awarded more than $80.2 million in grant funds, and reclaimed over 1,449 acres of blighted property. It has created 11,801 new jobs and retained 18,816 existing jobs. It has also attracted nearly $3.6 billion in private investment and generated over $59 million in new tax revenue. To date, it has created 8,545 housing units – 2,775 of which are considered affordable.

Details for the five grants are listed below: 

Redevelopment Grant Program 

Clara City – Hillside Development Project
The city of Clara City is awarded $250,000 in Redevelopment Grant funds for demolition on this
2.07-acre site. Historically used by the Clara City School District as the former Junior High School, the site will be redeveloped into a three-story, 38-unit apartment building. The project is anticipated to create one job, increase the tax base by $118,188, and leverage $7.2 million of private investment. Matching funds will be provided by the city and county.
Local contact – Steven Jones (320) 847-2142

City of Lindstrom – O’Jay Juice Factory
The city of Lindstrom is awarded $200,000 in Redevelopment Grant funds for demolition on this
1.94-acre site. Historically occupied by the O’Jay Juice Company, the site will be redeveloped into a 3,500 square foot dental office, 5,000 square foot laundromat, and a three-story, 54-unit affordable apartment building. The project is anticipated to create one job, retain six jobs, increase the tax base by $146,143, and leverage $8.9 million of private investment. Matching funds will be provided by the city and county. 
Local contact – John Olinger (651) 257-0625 

City of Plymouth – Four Seasons Mall Site
The city of Plymouth is awarded $775,000 in Redevelopment Grant funds for abatement, demolition, and public infrastructure improvements on this 16.29-acre site. Historically the Four Seasons Mall, which closed 11 years ago, the site will be redeveloped into a three-story, publicly owned park-and-ride; a six-story, 192-unit mixed-income apartment building; two retail buildings totaling 17,500 square feet; a two-story, 32,000 square foot office building; and a 220-unit apartment building. The project is anticipated to create 72 jobs, retain 60 jobs, increase the tax base by $1,496,234, and leverage $131.6 million of private investment. Matching funds will be provided by the developer and other grant sources.
Local contact – Danette Parr (763) 509-5056

City of Red Wing – Avanti
The city of Red Wing is awarded $204,857 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 0.37-acre site. Historically used by a shoe store and insurance company, the site will be redeveloped into a four-story, 36-unit apartment building with 600 to 800 square feet of commercial space. The project is anticipated to create four jobs, increase the tax base by $63,565, and leverage $6.8 million of private investment. Matching funds will be provided by the developer, tax increment financing, and the city.
Local contact – Kyle Klatt (651) 385-3697

St. Paul Port Authority – Hillcrest Redevelopment Site Phase I
The St. Paul Port Authority is awarded $701,405 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 29-acre site. Historically part of the 112-acre Hillcrest Golf Course, the site will be redeveloped into a 30,000 square foot training facility, 55,800 square foot office, and 100,000 square foot shop/fleet warehouse. The project is anticipated to retain 400 jobs, increase the tax base by $1,158,000, and leverage $28.9 million of private investment. Matching funds will be paid by the St. Paul Port Authority.
Local contact – Monte Hilleman (651) 204-6237

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