DEED Awards $3.2M in Redevelopment Grants

The cities of Canby, Duluth, Eagan, Minneapolis, North St. Paul, and Oakdale received the grants under DEED's Redevelopment Grant Program.

The Minnesota Department of Employment and Economic Development (DEED) announced Thursday that it has awarded $3.2 million in grants for six projects to help offset the costs of reclaiming and redeveloping blighted property.

The cities of Canby, Duluth, Eagan, Minneapolis, North St. Paul, and Oakdale received the grants under DEED's Redevelopment Grant Program.

The program-which was started in 1998-helps pay for up to 50 percent of the cost to redevelop blighted industrial, residential, or commercial properties.

“As the state's economy continues to recover, Minnesota communities are moving ahead with plans to redevelop blighted areas for more productive use,” DEED Commissioner Dan McElroy said in a statement. “These six redevelopment grants will help Minnesota communities put land back on the property tax rolls, create about 218 full-time jobs, and retain 175 jobs.”

The grants, which are awarded twice a year, can be used to pay for land acquisition, demolition, infrastructure, and other project-related improvements. Recipients of the redevelopment grants must provide matching funds.

Since the grant program started, more than $55.5 million has been awarded to 124 projects. The program has created 10,255 new jobs, retained 8,580 existing jobs, and generated $23.9 million in new tax revenue.

Here is a look at the six recipients and the projects that the grants will be used for:

¥ City of Canby, Block 1-$120,000: For infrastructure costs associated with redeveloping a 1.04-acre site. The site was formerly residential and will be redeveloped into 23,800 square feet of office space and parking.

¥ City of Duluth, Oneota-$664,780: For infrastructure costs associated with redeveloping a 8.7-acre site. The site is currently occupied by several commercial buildings and will be redeveloped into approximately 76,000 square feet of commercial space in three new buildings.

¥ City of Eagan, Cedar Grove Redevelopment-$559,986: For infrastructure costs associated with redeveloping a 32-acre site. The site was formerly a shopping mall and will be redeveloped into 250 apartment units, 150 senior housing units including some assisted living units, a hotel, and commercial space.

¥ City of Minneapolis, Seward Commons-$290,472: For infrastructure costs associated with redeveloping a 0.51-acre site. The site is part of the former Bystrom Brothers machine shop operation and is currently occupied by a surface parking lot. The site will be redeveloped with 40 units of supportive housing, an on-site wellness center, and offices for Touchstone Mental Health.

¥ City of North St. Paul, Bus Garage Redevelopment-$245,000: For infrastructure costs associated with redeveloping a 3.47-acre site. The former bus garage site will be redeveloped into a 35,000-square-foot high-tech manufacturing facility by Reflex Medical Molding Corporation.

¥ City of Oakdale, Oakdale Mall Redevelopment-$1,383,340: For infrastructure costs associated with redeveloping a 17.89-acre site. The site is currently occupied by a vacant shopping mall and will be redeveloped into 125,000 square feet of commercial space and 275 housing units.

-Melissa Loth