DEED Awards $2.2 Million in Redevelopment Funding



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




April 1, 2024

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DEED Awards $2.2 Million in Redevelopment Funding

St. Paul – Today, the Minnesota Department of Employment and Economic Development (DEED) announced more than $2.2 million in land redevelopment funding to eight communities statewide – creating or retaining 91 jobs, collectively increasing local tax bases by $3.1 million and leveraging more than $228.7 million in private investment.

The seven grants from DEED's Redevelopment Grant Program [ [link removed] ] and one loan from the Demolition Loan Program [ [link removed] ] are expected to redevelop 20.84 acres and establish 571 units of housing.

The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use. The Demolition Loan Program helps communities with the removal of dilapidated or unsafe structures to prep sites for future development.

“Redevelopment funding is a great resource that communities can use to invest in themselves,” said *DEED Commissioner Matt Varilek.* “Redeveloping unusable land produces significant economic growth, attracts investment and revitalizes neighborhoods in communities around Minnesota.”

Since its inception in 1998, the Redevelopment Grant Program has made 247 awards worth $84.8 million in grant funds. This funding has created or retained 31,107 jobs, attracted nearly $3.9 billion in private investment and created 9,409 housing units, 2,985 of which are affordable.

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 Redevelopment Grant projects are below:*

*Albert Lea: Convenience Store and Filling Station*

The city of Albert Lea was awarded $189,205 in Redevelopment Grant funds for public infrastructure improvements on this 3.66-acre site. A meat-packing facility for nearly 100 years, the plant — located in Albert Lea’s Blazing Star Landing redevelopment district — burned down in 2001. It remained primarily vacant due to soil contamination costs and other related remediation costs but has since been used as an auto repair shop, a concrete plant and a dry cleaner. The site will be redeveloped into a 9,100-square-foot convenience store that includes an associated car wash and filling pumps. It is anticipated this project will create six jobs, retain 13 jobs, increase the tax base by $54,824 and leverage $9.1 million of private investment. Matching funds will be paid by the city.

Local contact: Steven Jahnke, (507) 377-4325

*Cloquet: Hotel Solem Reuse*

The city of Cloquet was awarded $87,659 in Redevelopment Grant funds for asbestos and mold abatement on this 0.23-acre site. Located in the heart of downtown Cloquet, the former hotel, apartment building and restaurant will be renovated into an 18-unit apartment building in the once-vacant Hotel Solem building. It is anticipated this project will increase the tax base by $37,550 and leverage $2.5 million of private investment. Matching funds will be provided by tax increment financing and the city.

Local contact: Holly Hansen, (218) 879-2507

*Hutchinson: Jorgensen Hotel*

The city of Hutchinson was awarded $150,000 in Redevelopment Grant funds for demolition on this 0.26-acre site. Built in 1916, the existing Jorgenson Hotel has been home to a bank, restaurant, drug store, bowling alley and apartments. After the original hotel burned down, it was rebuilt using large amounts of concrete, which has proven to be costly for past redevelopment attempts. The current plan is to demolish the site and redevelop it into a new hotel. It is anticipated this project will create six jobs, increase the property tax base by $121,200 and leverage $8 million of private investment. Matching funds will be paid by tax increment financing and the developer.

Local contact: Miles Seppelt, (320) 234-4223

*La Crescent: 31 S Walnut Redevelopment*

The city of La Crescent was awarded $19,051 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 0.06-acre site. In 2017, work to revitalize Walnut Street in downtown La Crescent began, and the city is now ready to move forward with the redevelopment of 31 S Walnut. Historically used as a dry cleaner and a laundromat, the site will be redeveloped into a mixed-use residential and commercial building. This project is anticipated to create 10 jobs, increase the tax base by $14,212 and leverage $712,493 of private investment. Matching funds will be provided by tax increment financing and the developer.

Local contact: Larry Kirch, (507) 895-4096

*Moorhead: Downtown MCM Redevelopment*

The city of Moorhead was awarded $1 million in Redevelopment Grant funds for demolition on this 14‑acre site. Opened in 1973, the former shopping mall was innovative for its time, but now requires significant renovations to meet contemporary needs. The site will be redeveloped into a 55,400-square-foot library and two apartment buildings with a combined 484 units, and 36,000 square feet of commercial space. It is anticipated this phase of the project will create three jobs, retain 23 jobs, increase the tax base by $2,831,878 and leverage $204.4 million of private investment. Matching funds will be paid by tax increment financing, the developer and other funding sources.

Local contact: Amy Thorpe, (218) 299-5442

*Scott County Community Development Agency (CDA): Senior Housing and Office*

The Scott County CDA was awarded $545,000 in Redevelopment Grant funds for geotechnical soil stabilization and public infrastructure improvements on this 1.96-acre site. Formerly used by Shakopee’s Central School, this site is located in the heart of Shakopee — near the Scott County Government Center, the downtown business district and adjacent to a church and residential properties — and located alongside a transit route, providing access to the greater community. The site will be redeveloped into a three-story, 60-unit senior housing apartment building and a one-story, 17,000 square foot office building for the Scott County CDA. It is anticipated this project will create two jobs and retain 28 jobs. A $40,000 payment in lieu of taxes will be paid annually on the project. Matching funds will be paid by the Scott County CDA and Shakopee School District (ISD 720).

Local contact: Julie Siegert, (952) 641-5185

*White Bear Lake: Wildwood Rowhomes*

The city of White Bear Lake was awarded $115,253 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 0.67‑acre site. Formerly a gas station, the site will be redeveloped into two townhome buildings consisting of nine residential units. Removing the blight from the area will also significantly help redevelopment efforts on other sites at the intersection and throughout the County Road E corridor. It is anticipated this project will increase the tax base by $42,280 and leverage $4 million of private investment. Matching funds will be provided by the developer.

Local contact: Tracy Shimek, (651) 762-4838

*Details on the Demolition Loan project are below:*

*Deer River: 13 MAIN *

The city of Deer River was awarded $130,000 in Demolition Loan funds for the demolition of a building on this 0.25-acre site. The site, formerly used as a furniture and appliance store, was destroyed by a tornado in May of 2022. The site has redevelopment potential as commercial, healthcare or office space.

"DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. Find out how DEED delivers for Minnesota by visiting the""_ _""DEED website" [ [link removed] ]", ""_ _""JoinUsMn.com" [ [link removed] ]", ""CareerForceMN.com" [ [link removed] ]" or"" ""follow us on X" [ [link removed] ]"."

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"Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161."





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