St. Paul, MN -- Eight projects were awarded a total of $2.5 million in grants from the Minnesota Department of Employment and Economic Development (DEED) to help offset the costs of reclaiming and redeveloping blighted property in the state.
The funding was awarded under DEED's Redevelopment Grant Program to St. Paul (two), Rosemount, Park Rapids, St. Charles, Mankato, Watertown and Dakota County.
"Redevelopment grants are important tools for economic development because they allow communities to put blighted property back into productive use," said DEED Commissioner Dan McElroy. "These grants help create and retain jobs, increase the tax base and facilitate projects that otherwise might not have enough resources to advance."
The 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 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 $52.5 million, funded 118 projects statewide and reclaimed 1,080 acres of blighted property. The program has created 10,063 jobs, retained 8,431 existing jobs and generated $22.5 million in new tax revenue. The program has attracted more than $1.9 billion in private investment and led to the creation of 2,645 units of market-rate housing and 1,146 units of affordable housing.
The following projects received funding in the latest round:
Redevelopment Grant Program Awards, February 2010
City of St. Paul, Fifth and Wall Streets - $72,475
City of St. Paul Planning and Economic Development received $72,475 for infrastructure costs associated with redeveloping a 0.49-acre site. The vacant parking lot will be redeveloped into 48 apartment units and 15,000 square feet of commercial/retail space. This project is projected to create 30 jobs and increase the tax base by $131,000. Other funding sources for this project include Housing and Redevelopment Authority funds and tax increment financing.
Local contact: City of St. Paul, Marie Franchett, 651-266-6702
City of St. Paul, West Side Flats - $598,906
The city of St. Paul received $598,906 for infrastructure costs associated with redeveloping a 4.1-acre site. The site, which has seen multiple industrial uses over the past 100 years, will be redeveloped into 11,500 square feet of commercial space, combined with 185 apartment units, including 37 that will be affordable at 50 percent of area median income. The project is projected to create 26 jobs and increase the tax base by $228,866. Other sources of funding include Housing and Redevelopment Authority tax increment financing and owner equity.
Local contact: City of St. Paul, Marie Franchett, 651-266-6702
City of Rosemount, Gentz-Ryan Site - $50,000
The city of Rosemount received $50,000 for infrastructure costs associated with redeveloping this 2.55-acre site. The site, which was formerly used as a plumbing business and for farm equipment, auto and recreational vehicle dealerships, will be redeveloped into 30,000 square feet of commercial space. This project is expected to create 34 jobs and increase the tax base by $75,750. Other funding sources include tax increment financing and city utility funds.
Local contact: City of Rosemount, Kim Lindquist, 651-322-2020
City of Park Rapids, Armory Square - $188,707
The city of Park Rapids received $188,707 for infrastructure costs associated with redeveloping a 0.43-acre site. The site has been used for a variety of community activities since the early 1900s, with the latest use as an armory. The existing building will be redeveloped into a mixed-use structure for commercial, civic and arts activities. The project is expected to create 21 jobs and increase the tax base by $25,214. The city will also provide funding.
Local contact: City of Park Rapids, William Smith, 218-732-3163
City of Mankato, City Center (HECO Building) - $850,000
The city of Mankato received $850,000 for infrastructure costs associated with redeveloping a 1.18-acre site. The site contains a mostly vacant commercial building and a surface parking lot. The building will be renovated for commercial and residential use, and a public parking ramp is planned. The project is expected to create 47 jobs, retain 67 jobs and increase the tax base by $48,256. Tax increment financing and other city economic development funds will help pay for the project.
Local contact: City of Mankato, Paul Vogel, 507-387-8613
City of St. Charles, United Church of Christ Site - $65,000
The city of St. Charles received $65,000 to assist with acquisition, demolition and infrastructure costs related to tearing down a house and building a parking lot, which will serve a neighboring school and enable the United Church of Christ to be rebuilt after a fire last year. Although this project is not expected to create jobs or increase the city's tax base, the new construction allows for safe school bus loading, relieves street congestion and allows for compliance with zoning laws to rebuild the church. The city and school district will cover matching costs.
Local contact: City of St. Charles, Nick Koverman, 507-932-3020
Dakota County Community Development Agency, Valley Ridge Shopping Center - $500,000
The Dakota County Community Development Agency received $500,000 for infrastructure costs associated with redeveloping a 13.41-acre site. The site has been a strip mall since the 1970s and will be redeveloped into 140 units of senior apartments and assisted living. The project is expected to create 23 jobs, retain 14 jobs and increase the tax base by $15,957. Other funding sources include Presbyterian Homes, a Dakota County Local Redevelopment Grant and housing revenue bonds.
Local contact: Dakota County Community Development Agency, Dan Rogness, 651-675-4464
City of Watertown, South Lewis Downtown Redevelopment - $219,403
The city of Watertown received $219,403 for infrastructure costs associated with redeveloping a 1.5-acre site. The site, which is occupied by a vacant steel warehouse and an auto parts store, will be redeveloped into 50 units of senior housing and 10,000 square feet of commercial/retail space. The project is expected to create three jobs and increase the tax base by $207,196. Tax increment financing will also help to fund the project.
Local contact: City of Watertown, Steven Wallner, 952-955-2681
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 our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.
The funding was awarded under DEED's Redevelopment Grant Program to St. Paul (two), Rosemount, Park Rapids, St. Charles, Mankato, Watertown and Dakota County.
"Redevelopment grants are important tools for economic development because they allow communities to put blighted property back into productive use," said DEED Commissioner Dan McElroy. "These grants help create and retain jobs, increase the tax base and facilitate projects that otherwise might not have enough resources to advance."
The 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 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 $52.5 million, funded 118 projects statewide and reclaimed 1,080 acres of blighted property. The program has created 10,063 jobs, retained 8,431 existing jobs and generated $22.5 million in new tax revenue. The program has attracted more than $1.9 billion in private investment and led to the creation of 2,645 units of market-rate housing and 1,146 units of affordable housing.
The following projects received funding in the latest round:
Redevelopment Grant Program Awards, February 2010
City of St. Paul, Fifth and Wall Streets - $72,475
City of St. Paul Planning and Economic Development received $72,475 for infrastructure costs associated with redeveloping a 0.49-acre site. The vacant parking lot will be redeveloped into 48 apartment units and 15,000 square feet of commercial/retail space. This project is projected to create 30 jobs and increase the tax base by $131,000. Other funding sources for this project include Housing and Redevelopment Authority funds and tax increment financing.
Local contact: City of St. Paul, Marie Franchett, 651-266-6702
City of St. Paul, West Side Flats - $598,906
The city of St. Paul received $598,906 for infrastructure costs associated with redeveloping a 4.1-acre site. The site, which has seen multiple industrial uses over the past 100 years, will be redeveloped into 11,500 square feet of commercial space, combined with 185 apartment units, including 37 that will be affordable at 50 percent of area median income. The project is projected to create 26 jobs and increase the tax base by $228,866. Other sources of funding include Housing and Redevelopment Authority tax increment financing and owner equity.
Local contact: City of St. Paul, Marie Franchett, 651-266-6702
City of Rosemount, Gentz-Ryan Site - $50,000
The city of Rosemount received $50,000 for infrastructure costs associated with redeveloping this 2.55-acre site. The site, which was formerly used as a plumbing business and for farm equipment, auto and recreational vehicle dealerships, will be redeveloped into 30,000 square feet of commercial space. This project is expected to create 34 jobs and increase the tax base by $75,750. Other funding sources include tax increment financing and city utility funds.
Local contact: City of Rosemount, Kim Lindquist, 651-322-2020
City of Park Rapids, Armory Square - $188,707
The city of Park Rapids received $188,707 for infrastructure costs associated with redeveloping a 0.43-acre site. The site has been used for a variety of community activities since the early 1900s, with the latest use as an armory. The existing building will be redeveloped into a mixed-use structure for commercial, civic and arts activities. The project is expected to create 21 jobs and increase the tax base by $25,214. The city will also provide funding.
Local contact: City of Park Rapids, William Smith, 218-732-3163
City of Mankato, City Center (HECO Building) - $850,000
The city of Mankato received $850,000 for infrastructure costs associated with redeveloping a 1.18-acre site. The site contains a mostly vacant commercial building and a surface parking lot. The building will be renovated for commercial and residential use, and a public parking ramp is planned. The project is expected to create 47 jobs, retain 67 jobs and increase the tax base by $48,256. Tax increment financing and other city economic development funds will help pay for the project.
Local contact: City of Mankato, Paul Vogel, 507-387-8613
City of St. Charles, United Church of Christ Site - $65,000
The city of St. Charles received $65,000 to assist with acquisition, demolition and infrastructure costs related to tearing down a house and building a parking lot, which will serve a neighboring school and enable the United Church of Christ to be rebuilt after a fire last year. Although this project is not expected to create jobs or increase the city's tax base, the new construction allows for safe school bus loading, relieves street congestion and allows for compliance with zoning laws to rebuild the church. The city and school district will cover matching costs.
Local contact: City of St. Charles, Nick Koverman, 507-932-3020
Dakota County Community Development Agency, Valley Ridge Shopping Center - $500,000
The Dakota County Community Development Agency received $500,000 for infrastructure costs associated with redeveloping a 13.41-acre site. The site has been a strip mall since the 1970s and will be redeveloped into 140 units of senior apartments and assisted living. The project is expected to create 23 jobs, retain 14 jobs and increase the tax base by $15,957. Other funding sources include Presbyterian Homes, a Dakota County Local Redevelopment Grant and housing revenue bonds.
Local contact: Dakota County Community Development Agency, Dan Rogness, 651-675-4464
City of Watertown, South Lewis Downtown Redevelopment - $219,403
The city of Watertown received $219,403 for infrastructure costs associated with redeveloping a 1.5-acre site. The site, which is occupied by a vacant steel warehouse and an auto parts store, will be redeveloped into 50 units of senior housing and 10,000 square feet of commercial/retail space. The project is expected to create three jobs and increase the tax base by $207,196. Tax increment financing will also help to fund the project.
Local contact: City of Watertown, Steven Wallner, 952-955-2681
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 our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.
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