July 6 - DEED Awards 3.7M in Cleanup Grants

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) has awarded more than $3.7 million to investigate or clean up 13 contaminated sites in the state.

The grants were awarded under DEED’s Contamination Cleanup Grant Program for projects in Brooklyn Center, Duluth, Grand Rapids, Hibbing, Minneapolis (three), Moorhead, Roseville, South St. Paul and St. Paul (three).

“Cleaning up these properties will prepare them for economic development,” said DEED Commissioner Dan McElroy. “We expect these cleanup grants to attract nearly $97 million in private redevelopment investment across the state.”

According to McElroy, the grants will result in 30 market-rate housing units, 33 affordable units, 852 new jobs and 527 retained jobs. Local property tax revenues will increase by about $4 million as a result of reclaiming 309 acres of formerly polluted land.

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

The current grant cycle includes several commercial and industrial projects, expansion of existing businesses, and market-rate and affordable housing units.

Since its inception in 1995, DEED’s Contamination Cleanup Grant Program has awarded more than $115 million in cleanup and investigation grants statewide. Local authorities have used those funds to reclaim 2,943 acres of contaminated or polluted property for residential, commercial and industrial development. The combined projects have resulted in 11,376 new housing units, including 2,616 classified as affordable housing. Projects funded by the program have created an estimated 20,812 jobs, retained an estimated 11,856 existing jobs, increased the tax base by almost $73 million and attracted more than $3 billion in private redevelopment investment.

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 its services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.

DEED Contaminated Site Cleanup and Investigation Grant Awards

Brooklyn Center Economic Development Authority (EDA) -- Howe Fertilizer Site, $50,000
Brooklyn Center EDA was awarded $50,000 in investigation funds for this 5.1-acre former agriculture chemical manufacturing site. Proposed development includes a 60,000 square foot multi-tenant light industrial building that is expected to result in eight new jobs, 70 retained jobs and increase the tax base $111,598. The developer will pay for the remaining investigation costs.Local Contact: Brooklyn Center EDA, Tom Bublitz, 763-569-3433

Duluth EDA -- Bayfront Pier B, $46,500
Duluth EDA was awarded $46,500 in investigation funds for this 5.6-acre site formerly used as a bulk cement products shipping, storage and packaging facility. Proposed development includes a hotel and restaurant complex and retail space and is expected to result in 100 new jobs and a tax base increase of $954,632. The EDA and developer will pay for the remaining investigation costs.
Local Contact: Duluth EDA, Heidi Timm-Bijold, 218-730-5324

Grand Rapids EDA -- Itasca Eco-Industrial Park, $56,250
Grand Rapids EDA was awarded $56,250 in cleanup funding for this 223-acre former oriented strand board manufacturing facility contaminated by petroleum and other toxins. The site will be redeveloped into an Eco-Industrial Park, which is projected to create 70 new jobs and increase the tax base by $110,430. The Itasca Eco Industrial Park LLC will pay for remaining cleanup costs.
Local Contact: City of Grand Rapids EDA, Rob Mattei, 218-326-7622

City of Hibbing -- Habitat for Humanity, $45,000
City of Hibbing was awarded $45,000 in cleanup investigation funds for a 1.58-acre site which was a school destroyed by fire in the 1970s. The site will be redeveloped into six affordable housing units, and redevelopment is expected to increase the tax base by $2,952. Iron Range Resources and city funds will pay for remaining investigation activities.
Local Contact: City of Hibbing, Duane Northagen, 218-362-5931

City of Minneapolis -- 3100 Excelsior, $350,000
City of Minneapolis was awarded $350,000 in cleanup funds for this 0.46-acre site. Formerly a garden nursery and retail flower shop, site redevelopment will include renovating a portion of the existing building and constructing a 2,000-square foot addition. The building will be used for commercial purposes. The redevelopment is expected to create 14 new jobs, retain six jobs and increase the tax base by $39,436. Hennepin County and the developer will pay for remaining cleanup activities.
Local Contact: City of Minneapolis, Kevin Carroll, 612-673-5181

City of Minneapolis -- 600 Kasota Avenue, $727,050
City of Minneapolis was awarded $727,050 in cleanup funds for this 5.34-acre site. Formerly used as a municipal ash dump and later for commercial/industrial uses, site redevelopment will include reuse of the existing building and construction of a 15,000-square foot addition to allow for the expansion of the New French Bakery. Redevelopment is expected to create 54 new jobs, retain 40 jobs and increase the tax base by $117,484.  Hennepin County, Met Council and the developer will pay for the remaining cleanup activities.
Local Contact: City of Minneapolis, Miles Mercer, 612-673-5043

City of Minneapolis -- Linden Hills, $323,133
City of Minneapolis was awarded $323,133 in cleanup funds for this 0.87-acre site contaminated with lead and other pollutants. Currently the site of a restaurant and office building, the site will be redeveloped with a five-story building that will include commercial space on the first two floors and condominiums on the third through fifth floors. The new development is expected to create 38 new jobs, retain 15 jobs and increase the tax base by $461,407.  Hennepin County, Metropolitan Council and the developer will pay for remaining cleanup activities.
Local Contact: City of Minneapolis, Matt Goldstein, 612-673-5075

City of Moorhead -- Armory Site $157,962
City of Moorhead was awarded $157,962 in cleanup funds for this one-acre former Armory site. The site will be redeveloped as 27 affordable apartment units and is expected to create one new job and increase the tax base by $13,996. The city will pay for remaining cleanup costs.
Local Contact: City of Moorhead, Peter Doll, 218-299-5316

City of Roseville -- Twin Lakes PIK Site $50,000
City of Roseville was awarded $50,000 in investigation funds for a 25.63-acre site. The site was formerly used as a truck terminal and will be redeveloped into 400,000-square feet of office and mixed-use space. Redevelopment is expected to increase the tax base by $631,000. The developer will pay for remaining investigation activities.
Local Contact: City of Roseville, Jamie Radel, 651-792-7072

South St. Paul Housing and Redevelopment Authority (HRA) - 455 Hardman Avenue, $387,773
City of South St. Paul HRA was awarded $387,773 in cleanup funds for a 4.64-acre site. The site, formerly part of the stockyards, will be redeveloped into 66,700-square feet of office/warehouse space. Redevelopment is expected to create 67 new jobs and increase the tax base by $250,000. The HRA and the city’s EPA Revolving Loan Fund will pay for remaining cleanup activities.
Local Contact: South St. Paul HRA, Chet DeSchane, 651-554-3274

City of St. Paul -- 778 Smith Avenue (Kader Deli), $32,931
City of St. Paul Planning and Economic Development (PED) was awarded $32,931 in cleanup funds for this 0.20-acre former gas station site. Contamination includes gasoline range organics in soil. The proposed development includes an 1,800-square foot deli. This development is expected to result in five new jobs and a tax increase of $11,285. The developer will pay for remaining cleanup costs.
Local Contact: Saint Paul PED, Kate Reilly, 651-266-6618

St. Paul Port Authority -- Forest and East 7^th Street, $950,000
St. Paul Port Authority was awarded $950,000 in cleanup funds for this 30.56-acre site. Formerly the site of residences, businesses, factories and offices, the site will be redeveloped as 452,200-square feet of light industrial, commercial and office space. The new development is anticipated to create 508 new jobs, retain 254 jobs and result in a tax increase of $1,221,834. The EPA, Metropolitan Council, Ramsey County and Port Authority will pay for remaining cleanup activities.
Local Contact: St. Paul Port Authority, Monte Hilleman, 651-204-6237

St. Paul Port Authority -- Pelham Business Center, $600,000
St. Paul Port Authority was awarded $600,000 in cleanup funds for a 5.21-acre site. The site was formerly used as a truck terminal and will be redeveloped into 80,000-square feet of commercial/industrial space. Redevelopment is expected to create 216 jobs and increase the tax base by $144,000. The Port Authority’s EPA Revolving Loan Fund will pay for remaining cleanup activities.Local Contact: St. Paul Port Authority, Kelly Warden, 651-204-6240

Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk.

Minnesota Department of Employment and Economic Development
Communications Office
Phone 651/259-7161 or 1-800-657-3858 ∙ TTY 1-800-657-3973
www.PositivelyMinnesota.com