Jan. 10 - DEED Awards Cleanup Grants

ST. PAUL –The Minnesota Department of Employment and Economic Development (DEED) has awarded more than $5.2 million in grants to investigate or clean up 16 contaminated sites in seven cities in the state.

The grants were awarded under DEED’s Contamination Cleanup Grant Program for projects in Brooklyn Center, Columbia Heights, Duluth (two), Fairmont, Minneapolis (nine), St. Louis Park and St. Paul.

“Cleaning up and redeveloping polluted land grows businesses and creates more jobs,” said DEED Commissioner Mark Phillips. “The projects will contribute to the economic vitality of communities in the Twin Cities and greater Minnesota.”

DEED cleanup grants, which are awarded twice a year, account for about 75 percent of public 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 71 acres of formerly polluted land will increase by about $4.8 million. The grants will result in 446 market-rate housing units, 336 affordable units, 437 new jobs and 1,250 retained positions.

Since its inception in 1995, DEED’s Contamination Cleanup Grant Program has awarded more than $128 million in cleanup and investigation grants statewide. Local authorities have used those funds to reclaim 3,038 acres of contaminated property for residential, commercial and industrial development. More than 19,600 jobs have been created and more than 14,400 jobs retained.

Contaminated Site Cleanup and Investigation Grant Awards

City of Brooklyn Center, Formerly Lifetime Fitness, $50,000 
City of Brooklyn Center was awarded $50,000 in investigation funds for this 8.39-acre site, formerly the site of a fitness center. The site is suspected to be contaminated with petroleum. The site will be redeveloped for a 125,000-square-foot multi-tenant light industrial building. The redevelopment will create 25 jobs, retain 181 jobs and increase the tax base by $299,800. The remaining investigation costs will be paid for by the developer.
Local contact: city of Brooklyn Center, Tim Benetti, 763-569-3319

City of Columbia Heights, 3930 University Ave., $23,724 
City of Columbia Heights was awarded $23,724 in investigation funds for this 1.1-acre site, formerly the site of an electrical supply company. The site is expected to be redeveloped for commercial use. The redevelopment is expected to create up to 20 jobs and increase the tax base by $70,000. The remaining investigation costs will be paid for by the city.
Local contact: city of Columbia Heights, Scott Clark, 763-706-3672

City of Duluth, Atlas Industrial Park, $265,072 
City of Duluth was awarded $265,072 in supplemental cleanup funding for this 16-acre site, formerly the location of a cement plant. The site is contaminated with high pH. Plans call for a 25,000-square-foot expansion of an Ikonics facility and a 40,000–square-foot building for a future tenant. The redevelopment should create 69 jobs, retain 21 jobs and increase the tax base by $307,696. The remaining cleanup costs will be paid for by the city. 
Local contact: city of Duluth, Heidi Timm-Bijold, 218-730-5324

City of Duluth, Rohlfing of Duluth, $357,811
City of Duluth was awarded $357,811 in cleanup funding for this 0.6-acre site, which previously contained gas stations and auto repair facilities. The site is contaminated with petroleum. Plans call for expanding the Rohlfing distribution center with construction of a 12,000 square-foot warehouse. The development will create three jobs, retain 19 jobs and increase the tax base by $26,398. The remaining cleanup costs will be paid for by Rohlfing.
Local contact: city of Duluth, Heidi Timm-Bijold, 218-730-5324

City of Fairmont, Bank Midwest, $33,660 
City of Fairmont was awarded $33,660 in investigation funds for this 1.42-acre site, previously used for a VFW Hall. Petroleum and hydrocarbons are among the contaminants at the site. The redevelopment is expected to retain 28 employees.  Bank Midwest will redevelop and relocate to the site and pay for the remainder of investigation costs.
Local contact: city of Fairmont, Mike Humpal, 507-238-9461

City of Minneapolis, 222 Hennepin Ave., $436,881
City of Minneapolis was awarded $436,881 in cleanup funds for this 2.5-acre site, formerly containing an automobile dealership. The site is contaminated with petroleum and heavy metals. The existing structure will be demolished and 286 apartments and a 40,000-square-foot grocery will be constructed. The redevelopment is expected to create 109 new jobs and increase the tax base by $1.2 million. The developer and Metropolitan Council will pay for the remaining cleanup activities.
Local contact: city of Minneapolis, Kevin Carroll, 612-983-3684

City of Minneapolis, 700 Central Ave., $599,880 
City of Minneapolis was awarded $599,880 in cleanup funds for this 0.95-acre site previously used for retail shops, and maintenance and storage facilities.  The site is contaminated with petroleum and metals. Redevelopment plans call for 105 apartments, retail shops, a restaurant and parking garage. The redevelopment is expected to create 20 jobs and increase the tax base by $374,798. The developer and Hennepin County will pay for the remaining cleanup costs. 
Local contact: city of Minneapolis, Kevin Carroll, 612-983-3684

City of Minneapolis, 1100 Second St. S., $130,052 
City of Minneapolis was awarded $130,052 in cleanup funds for this 0.22-acre site previously used for bulk fuel storage. The property is contaminated with petroleum among other contaminants. The redevelopment will include a 5,200-square-foot manufacturing facility for Izzy's Ice Cream Cafe. The project will create 13 jobs, retain 10 jobs and increase the tax base by $24,765. The remaining cleanup costs will be paid for by the Metropolitan Council, Hennepin County and the developer.
Local contact: city of Minneapolis, Miles Mercer, 612-673-5043

City of Minneapolis, GAV Development, $41,250 
City of Minneapolis was awarded $41,250 in investigation funds for this 0.3-acre site, formerly used as a filling station. Petroleum is among the suspected contaminants. The proposed development includes a 10,000-square-foot  commercial office space. The redevelopment is expected to create 20 jobs and increase the tax base by $55,000. The developer will pay for the remaining investigation costs.
Local contact: city of Minneapolis, Kevin Carroll, 612-983-3684

City of Minneapolis, Heritage Park Senior Center, $310,875
City of Minneapolis was awarded $310,875 in cleanup funds for this 2.3-acre site, previously used for public housing. The property is contaminated with asbestos among other contaminants. The proposed development includes a 48-unit assisted living residence for low-income seniors and a 69,203-square-foot health and wellness center.  The redevelopment will create 42 jobs, four retained jobs and increase the tax base by $4,600.  The remaining cleanup costs will be paid by the city.
Local contact: City of Minneapolis, Emilio Bettaglio, 612-342-1419

City of Minneapolis, Hobbs Bar-B-Que, $129,826 
City of Minneapolis was awarded $129,826 in cleanup funds for this 0.36-acre site, which was previously used as a gas station and junk yard among other uses.  The property is contaminated with petroleum and metals. Plans call for reusing and expanding the existing building for a new restaurant. The redevelopment is expected to create six jobs and increase the tax base by $29,760. The developer will pay for the remaining cleanup costs.
Local contact: city of Minneapolis, Kevin Carroll, 651-983-3684

City of Minneapolis, Pillsbury Lofts, $284,112 
City of Minneapolis was awarded $284,112 in cleanup funding for this 3.65-acre site, formerly containing the Pillsbury Flour Mills. The property is contaminated  with metals, petroleum and pesticides. The site will be redeveloped into 225 market- rate housing units with 30,000 square-feet-of common area. The redevelopment is expected to create four jobs and increase the tax base by $179,182. The remaining cleanup costs will be paid for by the developer. 
Local contact: city of Minneapolis, Dollie Crowther, 612-673-5263

City of Minneapolis, Seward Commons Phase II, $200,000 
City of Minneapolis was awarded $200,000 in cleanup funding for this 0.55-acre site, previously containing a machine shop. The property is contaminated with petroleum. The site is expected to be redeveloped into 60 units of affordable  housing for seniors. The redevelopment is expected to create two jobs and increase the tax base by $43,938.  The remaining cleanup costs will be paid for by the developer and Hennepin County.
Local contact: city of Minneapolis, Amy Geisler, 612-673-5266

City of Minneapolis, WB Equities, $211,302 
City of Minneapolis was awarded $211,302 in cleanup funds for this 1.76-acre site, formerly used for business and industry. The property is contaminated with petroleum and other contaminants. Development plans call for a 31,600-square foot building for Hennepin County Human Services and Public Health Departments.  The redevelopment will create two jobs, retain 200 jobs and increase the tax base by $216,903.  The remaining cleanup costs will be paid for by the Metropolitan Council, Hennepin County and the developer.
Local contact: city of Minneapolis, Beth Grosen , 612-673-5181

City of St. Louis Park, Ellipse II, $346,690 
City of St. Louis Park was awarded $346,690 in cleanup funds for this 0.72-acre site, which previously contained a restaurant, hotel and gas station. The property is contaminated with petroleum and other contaminants.  Plans call for a five-story, 58-unit apartment building. The redevelopment will create four jobs and increase the tax base by $87,000. The remaining cleanup costs will be paid for by the Metropolitan Council, Hennepin County and the developer.
Local contact: city of St. Louis Park, Greg Hunt, 952-942-2197

City of St. Paul, Forest and East Seventh streets, $1.8 million
City of St. Paul was awarded $1.8 million in supplemental cleanup funding for this 30.56-acre site, which is contaminated with various metals and organics.  Formerly the site of 3M, the property is expected to be redeveloped into a business park. The new development is expected to create at least 98 jobs, retain 787 jobs and increase the tax base by $1.8 million. The remaining cleanup costs will be paid for by the St. Paul Port Authority.
Local Contact: City of St. Paul, Monte Hilleman, 651-204-6237

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. 

Upon request, the information in this news release can be made available in alternative formats by contacting the DEED Communications Office at 651-259-7161.

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
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