ST. PAUL, MN – April 14, 2009 – (RealEstateRama) — The Minnesota Department of Employment and Economic Development (DEED) has awarded $3.8 million in grants for nine projects to help offset the costs of reclaiming and redeveloping blighted property.

The cities of Forest Lake, Glencoe, Milaca, Minneapolis (two), St. Paul (two), Wadena and Waite Park received the grants under DEED’s Redevelopment Grant Program.

“These projects are generating millions of dollars in new development, thanks in part to funding from this program,” said DEED Commissioner Dan McElroy. “These projects will put land back on the property tax rolls and create nearly 400 full-time jobs in the state.”

The Redevelopment Grant program helps cities, counties and other units of government pay for up to 50 percent of the cost of redeveloping blighted industrial, residential or commercial properties. The grants, which are awarded twice a year, can be used to pay for land acquisition, demolition, infrastructure and other project-related improvements. Recipients must provide matching funds.

Since its inception in 1998, the Redevelopment Grant Program has awarded more than $52.2 million, funded 107 projects statewide and reclaimed 1,090 acres of blighted property. The program has created 10,023 new jobs, retained 9,716 existing jobs and generated $24.7 million in new tax revenue. The program has attracted more than $1.9 billion in private investment and led to the creation of 2,570 units of market-rate housing and 1,102 units of affordable housing.

The following projects received funding in the latest round:

Redevelopment Grant Program Awards, March 2009

City of St. Paul, Penfield Development – $550,000
The city of St. Paul received $550,000 for infrastructure improvements on a 2.1-acre site that houses a public safety building in downtown St. Paul. The land will be redeveloped into a mixed-use project containing 180 market-rate and 20 affordable apartments, a 167-room hotel and a 30,000-square-foot grocery store. This project will create 89 new jobs and increase the tax base by $813,700.
Local contact: City of St. Paul, Marie Franchett, 651-266-6702

City of Minneapolis, East Bank Mills – $151,900
The city of Minneapolis received $151,900 for infrastructure costs related to redeveloping a 7.6-acre site that contained the Pillsbury A Mill complex. It will be redeveloped into 93,800 square feet of commercial space and 308 housing units in the first of three phases. This phase is expected to create 24 jobs and increase the tax base by $1.39 million.
Local contact: City of Minneapolis, Matt Goldstein, 612-673-5075

City of Minneapolis, 14th Avenue Cul-de-sac – $170,000
The city of Minneapolis received $170,000 for infrastructure costs associated with redeveloping this 2.2-acre site that was previously used for automobile scrap and metal recycling, lumber milling and metal manufacturing. A 31,400-square-foot commercial/office building is planned for the site. This project is expected to retain 61 jobs and increase the tax base by $101,800.
Local contact: City of Minneapolis, Kevin Carroll, 612-673-5181

City of St. Paul, Koch Redevelopment – $185,000
The city of St. Paul received $185,000 for infrastructure costs associated with redeveloping this 1.2-acre site that was part of the Koch-Mobil bulk fuel storage facility. It will be redeveloped into a 13,300-square-foot grocery store. This project will create nine new jobs, retain 21 jobs and increase the tax base by $111,000.
Local contact: City of St. Paul, Joan Trulsen, 651-266-6694

City of Milaca, Old Creamery and Drying Plant – $33,400
The city of Milaca was awarded $33,400 for infrastructure costs associated with redeveloping a 0.8-acre site that previously housed a creamery and drying plant. The land will be redeveloped into a 3,500-square-foot office and showroom for a local lumber company and enable an adjacent auto repair business to add two service bays. The project is expected to create two new jobs, retain 17 jobs and increase the tax base by $15,200.
Local contact: City of Milaca, Greg Lerud, 320-983-3141

City of Forest Lake, Northland Mall – $897,900
The city of Forest Lake was awarded $897,900 for road and utility improvements on a 13.9-acre mall site. The mostly vacant mall will be redeveloped into five retail and office structures, including a 68,800-square-foot grocery, restaurants, health club, bank and medical office building. The project will create 191 new jobs and increase the tax base by $282,500.
Local contact: City of Forest Lake, Doug Borglund, 651-209-9734

City of Wadena, Old Peterson-Biddick Grain Elevator – $100,000
The city of Wadena received $100,000 for public acquisition, demolition and infrastructure costs associated with redeveloping this 1-acre site. The former site of a grain elevator will be redeveloped into a 10,000-square-foot building, an indoor/outdoor market and a public open air museum. This project is expected to create five jobs and increase the tax base by $10,100.
Local contact: City of Wadena, Dean Uselman, 218-631-7710

City of Glencoe, City Center Project – $425,000
The city of Glencoe was awarded $425,000 for infrastructure costs associated with redeveloping this 4.4-acre site. The former school site will be redeveloped into a city center, including a city hall, library, senior center and office space for the Chamber of Commerce. It is anticipated that this project will create 1.5 new jobs and retain 12 jobs.
Local contact: City of Glencoe, Mark Larson, 320-864-5586

City of Waite Park, Waite Avenue Redevelopment – $1.3 million
The city of Waite Park received $1.3 million for infrastructure costs related to redeveloping this 17.5-acre site containing 38 single-family homes. The site will be redeveloped into 273 housing units and 86,000 square feet of commercial space. The project is expected to create 66 new jobs, retain 50 jobs and increase the tax base by $427,800.

Local contact: City of Waite Park, Shaunna Johnson, 320-252-6822

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

Contact:   Kirsten Morell, 651-259-7161
Kirsten.Morell (at) state.mn (dot) us