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DEED Awards Cleanup Funding for Redevelopment Projects

Ten projects will create or retain nearly 6,700 jobs

February 06, 2014

Madeline Koch, 651-259-7236
Madeline.Koch@state.mn.us


ST. PAUL –
Minnesota redevelopment projects that will create 520 jobs and retain another 6,150 jobs were awarded contamination cleanup or investigative funding from the Minnesota Department of Employment and Economic Development (DEED).

The agency awarded $3.3 million from its Contamination Cleanup Grant Program for investigating or cleaning up polluted sites in Blue Earth County, Duluth, Fridley, Mankato and Minneapolis. Housing, retail, office and warehouse space, and a restaurant are planned on the sites.

DEED cleanup grants, which are awarded twice a year, account for about 75 percent of funding used for reclaiming polluted sites and brownfields statewide. The remaining 25 percent comes from the Metropolitan Council, cities, counties, other local units of government, private landowners and developers.

Thanks to the latest round of funding, local property tax revenue for 49 acres of formerly polluted land will increase by about $9.5 million. The grants will result in 825 market-rate housing units being completed.

Since its inception in 1995, the Contamination Cleanup Grant Program has awarded more than $139 million in cleanup and investigation grants statewide. Local authorities have used those funds to reclaim 3,079 acres of contaminated property for residential, commercial and industrial development. Nearly 19,400 jobs have been created and over 21,000 jobs retained.

Contaminated Site Cleanup and Investigation Grant Awards

Blue Earth County, Brad’s Auto Salvage Site, $30,583
Blue Earth County received $30,583 in investigation funds for a 4.9-acre site polluted with petroleum and other contaminants. The former auto salvage yard will be redeveloped into an 11,000-square-foot office and shop for a local contractor. The new development will retain 28 jobs and increase the tax base by $31,090. The developer will pay for remaining investigation activities.
Local contact: Blue Earth County, Jessica Beyer, 507-304-4491

City of Duluth, Jay Street Gas Holder Site, $31,436
The city of Duluth Economic Development Authority was awarded $31,436 in investigation funds for a 3.1-acre site formerly occupied by a 1 million-cubic-foot capacity gas holder. The site will be redeveloped for 12 market-rate homes. The project will increase the tax base by $30,362. The cost of remaining investigation activities will be covered by the development authority.
Local contact: City of Duluth, Heidi Timm-Bijold, 218-730-5324

City of Fridley, Former NIROP Site Phase I, $835,000
The city of Fridley Housing and Redevelopment Authority was awarded $835,000 in cleanup funds for a 30-acre portion of the former Naval Industrial Reserve Ordnance Plant (NIROP) contaminated with petroleum and other pollutants. Two warehouse/office buildings totaling 345,000 square feet are planned for the site. The project is expected to create 70 jobs, retain 388 jobs and increase the city’s tax base by $586,257. The Metropolitan Council, tax increment financing and the developer will cover remaining cleanup costs.
Local contact: City of Fridley, Paul Bolin, 763-572-3591

City of Mankato, 21 Sibley Parkway Site, $30,000
The city of Mankato received $30,000 to investigate possible contamination on a 1.53-acre site that contained an auto repair garage, beverage distribution company, refrigeration-systems company and city bus-washing facility. A 5,400- square-foot restaurant is planned. The project will create four jobs, retain 42 jobs and increase the city’s tax base by $44,370. The city and developer will pay remaining investigation costs.
Local contact: City of Mankato, Kristin Prososki, 507-387-8687

City of Minneapolis, 301 Washington Ave. Site, $472,845
The city of Minneapolis received $472,845 in cleanup funds for a 1.13-acre site contaminated with petroleum and other pollutants. The site of a former gas station will be redeveloped into a 319-unit, 14-story apartment building with 9,912 square feet of commercial/retail space. The new development will create 32 jobs and increase the tax base by $1.11 million. The developer will pay remaining cleanup costs.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

 

City of Minneapolis, Downtown East Site, $787,107    
The city of Minneapolis was awarded $787,107 to clean up a 3.3-acre site contaminated with petroleum and other pollutants. A gas station, printing company and other business enterprises have operated on the site. Plans call for construction of two 20-story office buildings, 76 housing units and 40,000 square feet of retail space. The new development will create 88 jobs, retain 5,000 jobs and increase the tax base by $3.72 million. The developer and Hennepin County will pay remaining cleanup activities.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

 

City of Minneapolis, Factory Lumber Site, $19,237
The city of Minneapolis received $19,237 to investigate a 1.01-acre site for petroleum and other contaminants. A 49,000-square-foot lab/office space is planned on the former site of a machine shop and warehouse. The project is expected to create 104 jobs and increase the tax base by $321,060. The developer will pay remaining cleanup activities.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

 

City of Minneapolis, Seward Commons Phase III Site, $388,400
The city of Minneapolis was awarded $388,400 to clean up a 1.01-acre site contaminated with petroleum and other pollutants. The site, formerly occupied by a metal machining company, will be redeveloped into 85 market-rate apartments with 1,500 square feet of commercial space. The project will create two jobs and increase the tax base by $322,177. Hennepin County and the developer will pay remaining cleanup costs.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

 

City of Minneapolis, Shapco Printing Site, $520,320
The city of Minneapolis received $520,320 to clean up a 1.21-acre site contaminated with solvents, metals and other pollutants. The former site of a printing operation will be redeveloped into 250,000 square feet of single-tenant office space. The new development is expected to create 155 jobs, retain 692 jobs and increase the tax base by $1.8 million. The Metropolitan Council and developer will pay for remaining cleanup activities.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

 

City of Minneapolis, WaHu Student Housing Site, $222,280
The city of Minneapolis received $220,280 to help pay for cleaning up a 1.93-acre site contaminated with petroleum and other pollutants.  An initial grant of $460,895 was awarded in December 2012. The site, which once housed a restaurant and plasma center, will be redeveloped into 30,500 square feet of commercial space and 333 units of housing. The new development will create 65 jobs, increase the city's tax base by more than $1.5 million and attract $84 million in private investment. The Metropolitan Council and the developer will pay remaining cleanup activities.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at http://mn.gov/deed/. Follow us on Twitter at twitter.com/mndeed.

Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161.