The Minnesota Department of Employment and Economic Development (DEED) announced more than $2.2 million in awards for eight redevelopment and demolition projects statewide. The grant funding will create or retain 112 jobs, collectively increase local tax bases by $1.82 million and leverage $230.9 million in private investment.
The five grants from DEED’s Redevelopment Grant Program and three loans from the Demolition Loan Program are expected to redevelop 47.54 acres and establish 444 housing units.
“Here at DEED, our mission is to empower the growth of the Minnesota economy, for everyone. By funding redevelopment for blighted land, DEED promotes community-led and self-sustaining economic growth,” said DEED Commissioner Matt Varilek. “Our redevelopment grant program is one of the many economic development initiatives at DEED that have a huge impact on the Minnesotans we serve.”
The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use. The Demolition Loan Program helps communities with the removal of dilapidated or unsafe structures to prep sites for future development.
Since its inception in 1998, DEED has made 267 awards through the Redevelopment Grant Program worth more than $88.6 million in funding. These funds have created or retained 30,839 jobs, attracted over $4 billion in private investment and created 9,564 housing units – 2,983 of which are considered affordable.
Redevelopment grants pay up to half of the redevelopment costs for qualifying sites, with a 50% local match. They can assist with the cost of public land acquisition, building and site demolition, infrastructure improvements, soil stabilization and ponding or other environmental infrastructure.
Redevelopment projects below:
Alexandria – Park and 3rd Alexandria LLC
DEED awarded the city of Alexandria $292,024 for this 3.17-acre site at 901 and 923 4th Ave E, and 924 3rd Ave. 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 city expects to create two jobs, increase the local tax base by $115,116 and leverage $13.9 million in private investment. Matching funds will be provided by the developer and tax increment financing.
Local contact – Martin Schultz (320) 759-3629
Duluth Economic Development Authority (EDA) – True North Goodwill Research and Training Center
DEED awarded the Duluth EDA $250,000 for an 8.81-acre site on Atlas Parkway to be redeveloped into a 61,000-square-foot resource and training center. Historically part of the 62-acre Atlas Cement Plant, the new resource and training facility will house transportation, warehousing, mattress recycling, classrooms, retail and administrative offices. It will also include a childcare center for program participants. The project is expected to create or retain 109 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.
Local contact – Amanda Anderson (218) 730-5323
Moorhead – Downtown MCM Phase II
DEED awarded the city of Moorhead $1 million for demolition on this 1.97-acre site as part of the city’s ongoing downtown development. Historically a shopping mall, two connected office buildings and city hall, the site will be redeveloped into two apartment buildings with a combined 203 units of housing and include 31,000 square feet of commercial space, 500,000 square feet of public space and 297 parking stalls. The city will also renovate city hall. Officials anticipate this phase of the project will increase the tax base by more than $1.03 million and leverage $153 million of private investment. Matching funds will be paid by tax increment financing and city sales tax revenues.
Local contact: Amy Thorpe (218) 299-5442
Norwood Young America – Norwood Flats
DEED awarded the city of Norwood Young America $238,500 for this 2.18-acre site located at 123 Reform St. N. Historically occupied by an agricultural chemical storage and distribution center and a truck maintenance shop, this site will be redeveloped into a three-story, 41-unit apartment building with tuck-under parking stalls. The city expects the project to create one job, increase the local tax base by $132,062 and leverage $8.4 million in private investment. Matching funds will be paid by tax increment financing and a loan from the city.
Local contact – Karen Hallquist (952) 467-1810
Oakdale – Tanners Lake Redevelopment
DEED awarded the city of Oakdale $430,937 for soil stabilization and stormwater infrastructure on this 3.42-acre site on Geneva Ave. N. Formerly two restaurants and a glass repair company, the site will be redeveloped into a 126-unit market rate apartment building and 12 market rate rental townhomes. Officials anticipate this project will increase the tax base by $326,107 and leverage $32.1 million of private investment. Matching funds will be provided by the developer.
Local contact: Andrew Gitzlaff (651) 730-2806
Demolition loan projects below:
Annandale – Larson Apartments
DEED awarded the city of Annandale $104,300 for demolition and abatement on this 0.09-acre site located at 74 Oak Ave N. Formerly used as a grocery store and apartments, this property has the potential for a commercial or mixed-use development. The city will issue a tax abatement bond to secure the loan.
Local contact – Jacob Thunander (320) 274-3055
Maplewood – Moose Lodge
DEED awarded the city of Maplewood $300,000 for demolition and abatement on this 2.10-acre site. The site was the home of a Moose Lodge — a fraternal and service organization — from 1964-2018 and has sat vacant since. Located at 1946 English St. N., the property has the potential for up to 105 housing units. The city will issue a taxable general obligation abatement bond to secure the loan.
Local contact – Danette Parr (651) 249-2310
Red Wing – Central Research Property
DEED awarded the city of Red Wing $232,000 for asbestos abatement and demolition on this 25.80-acre site. Located at 250 Highway 19 and historically used as a research lab, this site has the potential as an industrial development site. The city will issue a general obligation bond to secure the loan.
Local contact – Kyle Klatt (218) 730-5323
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. Find out how DEED delivers for Minnesota by visiting the DEED website, JoinUsMn.com, CareerForceMN.com or follow us on X.