The Minnesota Department of Employment and Economic Development (DEED) today announced more than $1.6 million in Contamination Cleanup and Investigation grants to eight communities statewide.

The grant program helps awarded communities fund the assessment and cleanup of contaminated sites for private redevelopment, covering up to 75% of the costs of removing contamination at approved polluted sites. Remaining costs are covered by cities and counties, other units of local government and private landowners and developers.

This grant round will support the investigation or clean-up of more than 184 acres of contaminated land and is expected to create or retain 342 jobs, add almost $2.2 million to local tax bases and create 174 housing units, including 90 affordable units. The eight projects are expected to leverage more than $50 million in private investment.

"Cleaning up contaminated sites helps attract private investments, increase local tax bases, support job growth, address housing needs and promote community growth and vitality," said DEED Commissioner Matt Varilek. "This grant program helps Minnesota communities explore and pursue ways to convert contaminated properties into functional sites for business or housing development."

Since its inception in 1993, DEED's Contamination Cleanup and Investigation Grant Program has awarded over $212 million in grants, which has helped assess and clean up 4,368 acres of land, contributing to the creation or retention of more than 52,000 jobs and clearing the way for 26,662 new housing units. The program has leveraged over $10.4 billion in private investments and added almost $160 million to local tax bases.

Details on individual projects are below:

Duluth Economic Development Authority – True North Goodwill Resource and Training Center

DEED awarded $444,620 in cleanup funding to the Duluth Economic Development Authority for an 8.81-acre site contaminated with lead, arsenic, benzo(a)pyrenes and high pH soils. Historically part of the Atlas Cement Plant, the site will be redeveloped into a 61,000-square-foot Goodwill resource and training center. The project is anticipated to create 63 new jobs and retain 46 jobs, increase the local tax base by $219,072 and leverage $23.4 million in private investment. Matching funds will be provided by the developer. DEED previously awarded a $250,000 redevelopment grant for the project.

Local contact – Amanda Anderson, City of Duluth economic developer, (218) 730-5323

City of Floodwood – Floodwood West Infrastructure and Housing Expansion Project

DEED awarded $50,000 in investigation funding to the City of Floodwood for a 127.25-acre site historically used for agricultural cropland and possibly vehicle maintenance. The city plans to redevelop the site into a mixed-use area that will include 30 rental units, 34 owner-occupied units, light industrial facilities and new public streets and utilities. The project is anticipated to create 14 new jobs and retain 14 jobs and increase the local tax base by $127,000. Matching funds will be paid by the city.

Local contact – Cory Suonvieri, City of Floodwood deputy clerk, (218) 476-2751

City of Mankato – Mankato Supportive Housing

DEED awarded $115,554 in cleanup funding to the City of Mankato this 1.56-acre site (located off Hwy. 169 near the Mankato West Cub Foods), which is tainted with petroleum and other contaminants. Historically used for railroads and material storage, the site will be developed into a three-story, 40-unit permanent supportive housing building for individuals experiencing homelessness or people with disabilities. The project is anticipated to create seven jobs, increase the local tax base by $12,400 and leverage $1.5 million in private investment. Matching funds will be provided by the developer.

Local contact – Courtney Kramlinger, City of Mankato economic development specialist, (507) 387-8711

City of St. Paul – The Beasley

DEED awarded $102,808 in cleanup funding to the City of St. Paul for this .30-acre site near the intersection of Selby Avenue and Dale Street, which is tainted with petroleum and other contaminants. Historically developed for residential and commercial uses, including a dry cleaner, retail and restaurants, the site will be redeveloped into a five-story mixed-use building with 20 residential units and 3,000 sq. ft. of retail space. The project is anticipated to create nine new jobs, increase the local tax base by $141,937 and leverage $6.5 million of private investment. Matching funds will be provided by the developer and other grant sources.

Local contact – Angela Riffe, City of St. Paul planning and economic development project manager, (651) 266-8524

South St. Paul Economic Development Agency (EDA) – Wakota Crossing

DEED awarded $660,490 in cleanup funding to the South St. Paul EDA for this 36.47-acre site which is tainted with petroleum and other contaminants. Historically used as an un-permitted dump, a filling station and a wastewater treatment pond, the site will be redeveloped into three commercial/industrial buildings with two stormwater ponds. The project is anticipated to create 89 new jobs and retain 15 existing jobs, increase the local tax base by $87,926, and leverage $8.4 million of private investment. Matching funds will be provided by the developer and other grant sources.

Local contact – Ryan Garcia, South St. Paul city administrator, (651) 554-3278

City of Two Harbors – Former J&J Castings

DEED awarded $50,000 in investigation funding to the city of Two Harbors for this 8.4-acre former foundry site. Historically used for rail maintenance and manufacturing, the site is slated to be redeveloped into a 118-room hotel with restaurants and an event space. The project is anticipated to create 58 jobs and increase the tax base by $1,357,766. Matching funds will be provided by the city.

Local contact – Patty Nordean, Two Harbors city administrator, (218) 834-8806

City of Virginia – Pohaki Expansion

DEED awarded $107,513 in cleanup funding to the city of Virginia for this 1-acre site, which is tainted with petroleum and other contaminants. Historically occupied by a filling station, an explosives company, a railroad corridor and a retail lumberyard, the current Pohaki lumberyard business will add a 15,000 square-foot, two-story addition to its existing retail space, and an 8,500 square-foot warehouse. The project is anticipated to create 13 jobs, retain 13 jobs, increase the tax base by $112,258 and leverage over $3 million of private investment. Matching funds will be provided by the developer.

Local contact – Jenny Bourbonais, City of Virginia community development planner, (218) 749-3562

City of Wabasha – Alleghany Apartments

DEED awarded $91,672 in cleanup funding to the City of Wabasha for this .54-acre site, which is tainted with petroleum and other contaminants. Historically occupied by an auto repair shop, a gas station and a machine shop, the site will be redeveloped into a three-story, 50-unit affordable apartment building with underground and surface parking. The project is anticipated to create one job, increase the local tax base by $135,767, and leverage $7.1 million of private investment. Matching funds will be provided by the Wabasha Port Authority and tax increment financing. DEED previously awarded redevelopment and cleanup investigation grants for this project.

Local contact – Caroline Gregerson, Wabasha city administrator, (651) 560-4860