St. Paul – The Minnesota Department of Employment and Economic Development (DEED) today announced more than $2 million in grants and loans awarded from the Redevelopment Grant and Demolition Loan Program.
DEED awarded four Redevelopment Grants to Alexandria, Minneapolis, Plymouth and Renville, and three Demolition Loans to Beaver Bay, Herman, and Springfield.
“These awards will generate more than $250 million in private investment and are expected to create 190 new jobs,” said Governor Tim Walz. “These grants and loans allow developers to take previously unused sites and turn them into high-demand housing, employment, and services developments.”
“Redevelopment is a costly and time consuming process,” said DEED Commissioner Steve Grove. “We want to make sure that communities across the state have access to this program. That’s why we’ll have an additional grant round – with nearly $4 million available – in the early part of 2020.”
The Redevelopment Grant Program helps communities with the cost and of redeveloping blighted industrial, residential or commercial sites for planned projects. Grants pay up to half the redevelopment costs for a qualifying site, with 50% local match required.
The program statute has specific criteria to rank projects including the redevelopment potential within the municipality, the overall need and readiness of the proposed project, the increase in tax base for the community, and the number of jobs created and retained.
Since its creation in 1998, the Redevelopment Grant Program has awarded 182 grants totaling near $70 million in funds. These projects have reclaimed nearly 1,400 acres and created or retained over 28,000 jobs. Read more about the Redevelopment Program on the DEED website.
The Demolition Loan Program helps development officials with the costs of demolishing old blighted buildings on sites that have future development potential but where there are no current development plans. Low-interest loans can pay up to 100% of the demolition costs for a qualifying site and can be used for site acquisition costs. Go to the DEED website for more details about the Demolition Loan Program.
Details of the most recent grant round include a development in Alexandria (details below):
Alexandria EDA – GoodNeighbor Properties
The Alexandria Economic Development Authority was awarded $350,000 in Redevelopment Grant funds for demolition and infrastructure improvements on this 2.31-acre site. This site will be redeveloped to a four-story, mixed-use building offering 23,450 square feet of retail and professional space, 75 apartments and one level of underground parking. It is anticipated this project will create 37 jobs and increase the tax base by $209,847. Matching funds will be provided by tax increment financing and the developer.