Dec. 30 - DEED Awards $1.6 Million in Cleanup Grants

ST. PAUL – The Minnesota Department of Employment and Economic Development (DEED) has awarded more than $1.6 million to investigate or clean up 14 contaminated sites in the state.

The grants were awarded under DEED’s Contamination Cleanup Grant Program for projects in Minneapolis (three), St. Paul (three), Hermantown, Park Rapids, Grand Rapids, Mayer, Duluth, Carver County, St. Cloud and Virginia.

“These grants will put formerly contaminated sites back into productive use and help create jobs,” said DEED Commissioner Dan McElroy. “This program is making an important contribution to the economic health of Minnesota.”

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 cities, counties and other local units of government, or private landowners and developers.

This round of grants is expected to attract more than $53 million in private redevelopment investment across the state, resulting in 255 market-rate housing units, 165 affordable units, 184 new jobs and 123 retained jobs. Local property tax revenues will increase by about $1 million as a result of reclaiming 252 acres of formerly polluted land.

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 $114 million in cleanup and investigation grants statewide. Local authorities have used those funds to reclaim 2,874 acres of contaminated or polluted property for residential, commercial and industrial development. The combined projects have resulted in 11,563 new housing units, including 2,688 that are classified as affordable housing. Projects funded by the program have created an estimated 20,465 jobs, retained an estimated 11,565 existing jobs, increased the tax base by more than $70 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.

Projects Awarded DEED Cleanup Grants

Carver County Community Development Agency (CDA): Oak Grove Dairy
$69,610 Cleanup Grant
The Carver County CDA received $69,610 in cleanup funding for this 2.07-acre site of a former dairy processing plant that is contaminated with diesel range organics, gasoline range organics and petroleum volatile organic compounds. The site will be developed into 51 units of senior housing, a city hall, library and sheriff's office. The project will create seven jobs and generate $20,000 in revenue from an annual payment in lieu of taxes. 
Local contact: Carver County CDA, John Sullivan, 952-448-7715

St. Cloud Housing and Redevelopment Authority (HRA): Fifth Avenue Student Housing
$608,422 Cleanup Grant
The St. Cloud HRA received $608,422 to clean up a 3.11-acre site that is contaminated with diesel range organics, polynuclear aromatic hydrocarbons, lead, mercury, selenium and arsenic. The former residential and commercial site will be redeveloped into a multi-use building containing 130 units of student housing, a St. Cloud State University welcome center and 19,800 square feet of commercial space. The project is expected to create 48 jobs and to generate $50,173 in new tax revenue.
Local contact: St. Cloud HRA, Bruce Thielman, 320-252-0880

City of Minneapolis: 129 Plymouth Ave. (Shafer Metal)
$121,395 Cleanup Grant
The city of Minneapolis received $121,395 in cleanup funds for a 0.76-acre site that is contaminated with lead and diesel range organics. The former commercial site will be developed into a 10,000-square-foot retail project. The new development will create 18 jobs and add $56,352 to the tax base.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

City of Minneapolis: 2600 Minnehaha Ave.
$303,566 Cleanup Grant
The city of Minneapolis received $303,566 in cleanup funds for this 1.51-acre site contaminated with diesel range organics, gasoline range organics and antimony.  The former railroad yard will be redeveloped into a two-story, 58,000-square-foot facility for New French Bakery. The project is expected to retain 95 jobs and add $121,927 to the tax base. 
Local contact: City of Minneapolis, Andy Carlson, 612-673-5026

City of Virginia: Arrowhead Youth Foyer
$207,562 Cleanup Grant
The city of Virginia received $207,562 to clean up a 2.6-acre site contaminated with benzo(a) pyrene. The former rail spur will be developed into an 111,949-square-foot, 15-unit facility for homeless young people ages 16 to 21. The project will create two new jobs and increase tax revenue by $14,800.
Local contact: City of Virginia, John Tourville, 218-780-7500

City of St. Paul: Renaissance Box
$121,503 Cleanup Grant
St. Paul Planning and Economic Development received $121,503 to clean up this 0.43-acre site. The site, which was used in the past for housing, a shoe factory and various other commercial enterprises, is contaminated with arsenic, lead, mercury, benzo(a)pyrene and diesel range organics.  Plans include rehabilitating the seven-story building into 70 units of affordable housing that will create two new jobs and increase the tax base by $7,848.
Local contact: City of St. Paul, Diane Nordquist, 651-266-6640

City of Hermantown: Former Cich Autobody
$22,125 Investigation Grant
The city of Hermantown received $22,125 in investigation funding for the former Cich Autobody site. This 4.2-acre site, formerly used for auto salvage operations, is suspected of being polluted with petroleum, metals and volatile organic compounds. The site will be redeveloped into a small business that makes hospice care devices for access to buildings. Four jobs will be created and taxes increased by $3,505.
Local contact: City of Hermantown, John Mulder, 218-729-3600

City of Minneapolis: Linden Hills Development
$31,353 Investigation Grant
The city of Minneapolis received $31,353 in investigation funds for this 0.87-acre site that contains a restaurant and office building.  Suspected contaminants include polynuclear aromatic hydrocarbons, petroleum and metals. Plans call for a five-story building with commercial uses on the first and second floors and residential units on the remaining floors. This development is expected to result in eight new jobs, 14 retained jobs and an increased tax base of $493,122. 
Local contact: City of Minneapolis, Matt Goldstein, 612-673-5075

City of Park Rapids: Armory Square
$22,275 Investigation Grant
The city of Park Rapids received $22,275 in investigation funds for a 0.43-acre site that is potentially contaminated with petroleum. The onetime site of a church, opera house, school and armory with associated garage will be redeveloped for retail and food venues and for civic uses. The project will result in 17 new jobs and raise the tax base by $25,400.
Local contact: City of Park Rapids, Bill Smith, 218-732-3163

Grand Rapids Economic Development Authority (EDA): Itasca Eco-Industrial Park
$48,750 Investigation Grant
The Grand Rapids EDA received $48,750 to investigate a 223-acre site that housed an oriented strand board manufacturing facility. The land is suspected of being contaminated with petroleum, polychlorinated biphenyls, metals, volatile organic compounds and caustic soda.  The site will be redeveloped into the Itasca Eco-Industrial Park, which is projected to create 70 new jobs and increase the tax base by $117,875. 
Local contact: Grand Rapids EDA, Rob Mattei, 218-326-7622

City of St. Paul: Liefshultz Apartments
$20,250 Investigation Grant
The city of St. Paul received $20,250 to investigate this 0.91-acre site that was part of a bulk petroleum storage facility. Suspected contamination includes petroleum. The proposed project includes up to 54 units of senior housing. This development is expected to create three new jobs and increase the tax base by $88,256. 
Local contact: City of St. Paul, Joan Trulsen, 651-266-6634

City of Mayer: Sandblasting (Old Creamery)
$27,367 Investigation Grant
The city of Mayer received $27,367 to investigate this 1.26-acre former creamery for petroleum, metals and polynuclear aromatic hydrocarbons contamination. The site will be redeveloped for additional street right-of-way, green space and future commercial usage. 
Local contact: City of Mayer, Luayn Murphy, 952-657-1502

City of St. Paul: University and Galtier Senior Housing
$20,055 Investigation Grant
The city of St. Paul (through Planning and Economic Development) received $20,055 to investigate the site of the University and Galtier Senior Housing project (former Saxon Ford site) for contaminants. This 1.03-acre site was used for residential and commercial purposes, including a gas station that left petroleum contamination. A four-story, 50-unit, low-income senior housing facility is planned on the site. Two jobs will be created and the tax base increased by $33,000.
Local contact: City of St. Paul, Joan Trulsen, 651-266-6634

Duluth Economic Development Authority (EDA): Bayfront Lot D
$48,000 Investigation Grant
The Duluth EDA received $48,000 to investigate this 9.88-acre site for metals, polynuclear aromatic hydrocarbons, petroleum and polychlorinated biphenyls. The land had been the site of an electrical equipment manufacturer, a scrap yard and other industrial entities. The proposed project includes a transient boat facility for 50 to 75 vessels. Three jobs are expected to be created. 
Local contact: Duluth EDA, Heidi Timm-Bijold, 218-730-5324

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