Rendering of Lillie Redevelopment in North St. Paul

St. Paul – The Minnesota Department of Employment and Economic Development (DEED) awarded $2.26 million in grants to five Minnesota cities in the February round of the Redevelopment Grant Program. This program helps communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use.

The funding from this round will leverage $143,428,896 of private investment and is expected to create or retain 29 jobs and establish 453 housing units – 232 of which will be affordable.

"These redevelopment grants are essential to transforming formerly unusable land and turning it into space that communities can use to grow and thrive," said temporary DEED Commissioner Kevin McKinnon. "We're excited about the opportunities these six projects present for revitalization in these communities."

Since its inception in 1998, the program has awarded 241 grants totaling $81.9 million. These projects have created or retained 30,475 jobs and leveraged more than $3.6 billion in private investment, as well as reclaimed 1,457 acres of blighted property.

Redevelopment grants pay up to half of the redevelopment costs for qualifying sites, with a 50% local match. They can assist with the cost of public land acquisition, building and site demolition, infrastructure improvements, soil stabilization, and ponding or other environmental infrastructure.

Details on the individual projects follow:

City of Delano – Granite Works: Phase II 

The city of Delano is awarded $405,086 in Redevelopment Grant funds for demolition, soil stabilization, and public infrastructure improvements on this 3.29-acre site. Formerly used as a sawmill and a granite mill, this site will be redeveloped into a 75-unit market-rate apartment building. This site is Phase II of a 17.41-acre development. It is anticipated this project will create three jobs, increase the tax base by $120,610, and leverage $16.4 million of private investment. Matching funds will be provided by tax increment financing.

Local contact: Phil Kern (763) 972-0565

City of Excelsior – 339 Third Street

The city of Excelsior is awarded $541,025 in Redevelopment Grant funds for abatement, demolition, and public infrastructure improvements on this 1.59-acre site. Historically used as a motor freight station, and more recently as a fire department and City Hall, the site will be redeveloped into 39 market-rate apartment units and 11 rowhomes and includes public/private parking. It is anticipated this project will retain three jobs, increase the tax base by $320,000, and leverage $31.5 million of private investment. Matching funds will be provided by the developer and tax increment financing.

Local contact: Kristi Luger (952) 653-3672

City of Minneapolis– Agra

The city of Minneapolis is awarded $230,875 in Redevelopment Grant funds for asbestos abatement, demolition, and public infrastructure improvements for this 0.95-acre site. Formerly occupied by a restaurant, this site will be redeveloped into a 155-unit affordable apartment building with 1,000 square feet of commercial space. It is anticipated this project will create nine jobs, increase the tax base by $219,410, and leverage $40 million of private investment. Matching funds will be provided by the developer, tax increment financing, and other sources.

Local contact: Kevin Carroll (612) 673-5181

City of Minneapolis– 550 West Lake Street

The city of Minneapolis is awarded $240,642 in Redevelopment Grant funds for asbestos abatement, demolition, public infrastructure improvements, and soil stabilization for this 0.64-acre site. Historically occupied by residential structures and various commercial uses, including dry-cleaning, sheet metal fabricating, and auto sales; this site will be redeveloped into a 91-unit apartment building which includes 65 affordable units.  It is anticipated this project will create three jobs, increase the tax base by $149,821, and leverage $29 million of private investment. Matching funds will be provided by the developer, tax increment financing, and other sources.

Local contact: Kevin Carroll (612) 673-5181

City of Sandstone – Historic Sandstone School

The city of Sandstone is awarded $674,233 in Redevelopment Grant funds for demolition and interior abatement on this 2.64-acre site. Historically used as a public school, this site will be redeveloped into a 32- to 45-unit apartment building with up to 12 affordable units. The project is anticipated to create one job, increase the tax base by $36,500, and leverage $5.8 million of private investment. Matching funds will be provided by the developer, tax increment financing, and other sources.

Local Contact: Kathy George (320) 245-5241

City of North St. Paul – Lillie Redevelopment

The city of North St. Paul is awarded $169,710 in Redevelopment Grant funds for demolition and public infrastructure improvements this 0.73-acre site. Historically occupied by a gas station and most recently by residences and a newspaper printing and distribution business, this site will be redeveloped into an 82-unit mixed-use apartment building with 1,500 square feet of commercial space. The project is anticipated to create 10 jobs, increase the tax base by $279,954, and leverage $19.8 million of private investment. Matching funds will be provided by the developer, tax increment financing and other grant sources.