The Minnesota Department of Employment and Economic Development (DEED) announced $6.9 million for 11 communities to assess and clean up contaminated sites for private or public redevelopment. The grants are expected to create 481 new jobs, collectively increase local tax bases by $4.7 million and leverage more than $395 million in private investment.
The Contamination Cleanup and Investigation grants pay up to 75% of the costs to assess and clean up polluted sites. Cities, port authorities, housing and redevelopment authorities, economic development authorities or counties with known or suspected soil or groundwater contamination are eligible. In addition to creating jobs and growing the tax base, the 12 grants announced today will assess or clean up 187 acres and create 582 housing units.
“DEED recognizes the importance of being able to clean up land that might otherwise be deemed inoperative,” said DEED Commissioner Matt Varilek. “That’s why the Contamination Cleanup and Investigation grant program is so great — it allows Minnesota cities to further pursue economic growth in locations where that once might have not been possible.”
Since its inception in 1993, the Contamination Cleanup and Investigation Grant Program has awarded over $212 million in grants, which helped assess and clean up 4,212 acres of land – contributing to the creation or retention of 51,902 jobs and clearing the way for 26,673 new housing units. The program has also leveraged over $10.4 billion in private investments and added more than $153 million to local tax bases.
Details on individual projects below:
City of Alexandria – Park and 3rd Lofts
DEED awarded the city of Alexandria $455,720 for this 3.2-acre site contaminated with petroleum and other contaminants. Historically occupied by residences and a concrete ready-mix plant, this site will be redeveloped into a three-story, 62-unit apartment building with tuck-under garages and a detached, single-story garage. The project is anticipated to create three jobs, increase the local tax base by $115,116 and leverage $13.9 million of private investment. The developer will provide matching funds.
Local contact: Marty Schultz, (320) 759-3629
City of Bemidji – Rail Corridor
DEED awarded the city of Bemidji $902,082 for this 19.1-acre site contaminated with petroleum and other contaminants. Historically a rail corridor with related commercial buildings, the site will be redeveloped as a 60,000-square-foot community wellness center operated by the YMCA as part of a larger redevelopment project expected to revitalize the area. Located at 101 Minnesota Ave. SW, it is anticipated this project will create 77 jobs, increase the tax base by $30,000 through Payment in Lieu of Taxes (PILOT) payments and leverage $35 million of private investment. The city will provide matching funds.
Local contact: Rich Spiczka, (218) 759-3565
City of Duluth – Sofidel America Expansion
DEED awarded the city of Duluth $2,399,086 to help clean up contaminants in order to double the size of the Sofidel paper manufacturing facility. Historically occupied by iron and steel foundries and scrapyards, the existing 476,000-square-foot paper plant will be expanded with a 295,000-square-foot converting facility, a 76,000-square-foot raw materials warehouse and a 108,000-square-foot automated warehouse. Sofidel’s $200 million expansion, announced in October, is anticipated to create 160 jobs, retain 80 jobs, increase the local tax base by $2.3 million and leverage at least $87.2 million of private investment. The developer will provide matching funds.
Local contact: Tricia Hobbs, (218) 730-5322
City of Ely – Ely Depot and Railroad Revitalization
DEED awarded the city of Ely $312,257 for this 3-acre site contaminated with petroleum and other contaminants. Historically used as a railroad depot, the redevelopment includes historic preservation of a portion of the original railroad depot with an additional 1,500-square-foot addition that will be a brewery, bar, restaurant and event center. Located at 212 Central Ave., the project is anticipated to create 22 new jobs, increase the local tax base by $27,368 and leverage $1.7 million in private investment. The developer will provide matching funds.
Local contact: Harold R. Langowski, (218) 226-5474
City of Mankato – Hotel Mankato
DEED awarded the city of Mankato $323,887 for this 2-acre site contaminated with petroleum and other contaminants. Historically occupied by a hotel and an auto dealership, this site will be redeveloped into one four-story, 126-room hotel, and one 10-story, 156-room hotel and restaurant. The two hotels will be joined by a common lobby and one level of shared underground parking. Located at 101 E. Mankato St., the project is anticipated to create 111 jobs, increase the property tax base by $566,738 and leverage $81.6 million of private investment. Matching funds will be provided by the developer and tax increment financing.
Local contact: Courtney Kramlinger, (507) 387-8711
City of Medina – Hamel Road Apartments
DEED awarded the city of Medina $930,687 for this 6.7-acre site contaminated with various contaminants. Historically developed as cropland and used for dumping debris, this site will be redeveloped as an 89-unit, multi-family apartment complex with sub-grade and surface parking. Located at 500 Hamel Road, it is anticipated this project will create two jobs, increase the tax base by $228,997 and leverage $22 million of private investment. The developer and other grant sources will provide matching funds.
Local contact: Dusty Finke, (763) 473-8846
City of St. Cloud – Riverboat Lot
DEED awarded the city of St. Cloud $41,433 to assess this 0.3-acre site. Historically occupied by commercial buildings and most recently used as a parking lot, this site will be redeveloped into a mixed-use building with 20 to 30 residential units and commercial space on the ground floor. Located at 599 1st St. S, the project is anticipated to create seven jobs and increase the local tax base by $50,500. The city will provide matching funds.
Local contact: Cathy Mehelich, (320) 650-3111
City of St. Paul – 42 Water Street
DEED awarded the city of St. Paul $354,839 for this 3.3-acre site contaminated with petroleum and other contaminants. Historically occupied by a foundry, a railroad freight depot, a petroleum-chemical business and a pharmaceutical manufacturer, this site will be redeveloped into a 35,000-square-foot recreational facility. This project joins the recent Farwell Yard development on Water Street, which received DEED’s Redevelopment Program grant funding in 2021. The project is anticipated to create 43 new jobs, increase the local tax base by $191,838 and leverage $10.7 million of private investment. The developer and other grant sources will provide matching funds.
Local contact – Nick Wolff (651) 266-6645
City of St. Paul – Western Graphics
DEED also awarded the city of St. Paul $619,821 for this 1.6-acre site contaminated with petroleum and other contaminants. Historically occupied by printing and label making businesses and most recently used by the Y of the North as a youth program activity area, this site will be redeveloped into a 25,000-square-foot wellbeing center operated by the YMCA. Located at 530 N. Wheeler St., the project is anticipated to create 19 new jobs, retain 23 jobs and leverage $12.9 million of private investment. The developer and other grant sources will provide matching funds.
Local contact: Marilyn Rosendahl, (651) 266-6606
City of Rochester – Civic Center North
DEED awarded the city of Rochester $366,288 for this 1.8-acre site contaminated with petroleum and other contaminants. Historically occupied by a metal stamping manufacturer and a pharmaceutical supplier, this site will be redeveloped into a 14-story, 243-unit market-rate apartment building and a five-story, 76-unit affordable apartment building. Located at 217 E. Center St., the project is anticipated to create six new jobs, increase the local tax base by $861,407 and leverage $103.4 million of private investment. The developer will provide matching funds.
Local contact: Brent Svenby, (507) 328-2003
City of Rosemount – Minnesota Aerospace Complex
DEED awarded the city of Rosemount $37,480 in investigation funding for this 60-acre site. Historically used in the production of smokeless gun powder and most recently for agricultural purposes, this site will be redeveloped into multiple buildings supporting a private industrial campus. The site will be located within UMore Park, directly south of the recently announced Meta data center. The project is anticipated to create 16 jobs and increase the local tax base by $130,747. The developer and other grant sources will provide matching funds.
Local contact: Eric Van Oss, (651) 322-2059
City of Waconia – Olive & Second
DEED awarded the city of Waconia $248,302 for this nearly 1-acre site contaminated with petroleum and other contaminants. Historically developed as single-family homes, a service station and surface parking, this site will be redeveloped as a 92-unit, multi-family apartment complex with 3,000 square feet of retail space. It is anticipated this project will create 15 jobs, increase the tax base by $323,045 and leverage $27 million of private investment. The developer will provide matching funds.