The 13 awarded projects are expected to create 147 jobs and leverage $486 million in private investment.



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




January 27, 2026

Media Resources [ [link removed] ]

Previous Announcements [ [link removed] ]





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DEED Awards $6 Million in Contamination Cleanup and Investigation Funding

*St. Paul, MN* – The Minnesota Department of Employment and Economic Development (DEED) today announced more than $6 million for 13 communities to assess and clean up contaminated sites for redevelopment. The grants are expected to create 147 new jobs, collectively increase local tax bases by nearly $5.5 million and leverage more than $486 million in private investment.

Contamination Cleanup and Investigation grants [ [link removed] ] pay up to 75% of the costs to assess and clean up polluted sites for public or private redevelopment. Cities, port authorities, housing and redevelopment authorities, economic development authorities or counties with known or suspected soil or groundwater contamination are eligible. In addition to creating jobs and growing the tax base, the 13 grants announced today will assess or clean up 75 acres and create 1,509 housing units.

“The Contamination Cleanup grants support communities’ efforts to remediate contaminated land to rehabilitate it into productive spaces for business or housing development, or other projects supporting community economic growth,” said *DEED Commissioner Matt Varilek*.

Since its inception in 1993, the Contamination Cleanup and Investigation grant program has awarded over $219 million in grants, which helped assess and clean up 4,435 acres of land – contributing to the creation or retention of 52,025 jobs and clearing the way for 27,951 new housing units. The program has also leveraged over $10.8 billion in private investments and added more than $163 million to local tax bases.

Details on individual projects below:

*City of Albert Lea – Family Housing Development*

DEED awarded $267,487 in cleanup funding to the city of Albert Lea for this 3-acre site contaminated with petroleum and other contaminants. Historically part of a large meat packing facility that burned down in 2001, the site will be redeveloped into a three-story, 60-unit apartment building. The project is anticipated to create two jobs, increase the local tax base by $22,487 and leverage $7.5 million in private investment. Matching funds will be provided by the developer.

"Local contact – Steven Jahnke, (503) 377-4325"

*Austin HRA – Semcac Head Start and Outreach Center*

DEED awarded $239,883 in cleanup funding to the Austin HRA for this 1.93-acre site contaminated with petroleum and other contaminants. Historically used as an auto dealership and later a broadcast studio, the site will be redeveloped into a 13,300-square-foot outreach center including daycare/child education, senior nutrition services and office space. The project is anticipated to create five jobs, retain 31 jobs and leverage $2.7 million in private investment. Matching funds will be provided by the developer.

"Local contact – Taggert Medgaarden, (507) 433-1866"

*Duluth Economic Development Authority (EDA) – Lot D*

DEED awarded $2,134,320 in cleanup funding to the Duluth EDA for this 12-acre site contaminated with petroleum and other contaminants. Historically used for various petroleum companies, as well as a variety of industrial purposes including use by a scrap iron and metal facility, this site will be developed into two, five-story apartment buildings with a total of 509 units. Plans also include the preparation of a pad-ready site intended for future hotel development. The project is anticipated to create 12 jobs, increase the local property tax base by more than $1.5 million and leverage $129 million of private investment. Matching funds will be provided by the EDA, tax increment financing and the developer.

"Local contact – Amanda Anderson, (218) 730-5323"

*City of Ely – Ely Depot and Railyard Revitalization*

DEED awarded $257,817 in cleanup funding to the city of Ely for this 3-acre site contaminated with petroleum and other contaminants. Historically used as a railroad depot, the redevelopment includes historic preservation of a portion of the original railroad depot with an additional 1,500-square-foot addition for a brewery, bar, restaurant and event center. The project is anticipated to create 22 new jobs, increase the local tax base by $27,368 and leverage $1.6 million in private investment. Matching funds will be provided by the city and the developer. DEED previously awarded cleanup and investigation [ [link removed] ] funding for this project.

"Local contact – Harold R. Langowski, (218) 226-5474"

*City of Hermantown – Fox Ridge at the Pillars*

DEED awarded $50,482 in cleanup funding to the city of Hermantown for this 10-acre site contaminated with lead. Historically used for agricultural purposes and as a farmstead, the southwest portion of the site will be developed into 20 slab-on-grade market-rate rental townhomes for seniors. This project will compliment a three-story senior living complex completed in 2024 on the northeast portion of the site. The project is anticipated to create one job, retain 42 jobs, increase the local property tax base by $95,799 and leverage $11 million in private investment. Matching funds will be provided by the developer.

"Local contact – Chad Ronchetti, (218) 729-3600"

*Litchfield Housing and Redevelopment Authority (HRA) – Housing Site*

DEED awarded $23,775 in investigation funding to the Litchfield HRA for this 1.65-acre site. Historically used as agricultural land, this site abuts a chemical manufacturing facility. The site may be redeveloped as multi-family affordable housing. It is anticipated this project will create one job, increase the tax base by $51,864 and leverage $3 million in private investment. Matching funds will be provided by the HRA.

"Local contact – Jenny Klima, (507) 227-5402"

*City of Melrose – Downtown Melrose Redevelopment Project*

DEED awarded $50,000 in investigation funding to the city of Melrose for this 7.3-acre site. Historically used as a turkey processing plant, the site may be redeveloped as housing, warehouse/loading docks and a street extension. The project is anticipated to create three new jobs and increase the local tax base by $41,300. Matching funds will be provided by the city.

"Local contact – Sheila Hellermann, (320) 256-1969"

*City of Minneapolis – Lundstrum Performing Arts*

DEED awarded $191,947 in cleanup funding to the city of Minneapolis for this 1.31-acre site contaminated with petroleum and other contaminants. Historically used as a scrap metal recycling facility, an auto salvage business and a coal yard, the site was redeveloped with a commercial building in the early 2000s. This redevelopment includes the renovation of an existing building and a 16,800-square-foot theatre addition. The project is anticipated to create five new jobs, retain 10 jobs and leverage $19 million in private investment. Matching funds will be provided by the developer and other grant sources.

"Local contact – Kevin Carroll, (651) 983-6384"

*City of Rogers – Willis Trucking Redevelopment*

DEED awarded $89,862 in cleanup funding to the city of Rogers for this 4.61-acre site contaminated with volatile organic compounds. Previously used for truck maintenance, the site will be redeveloped into a three-story, 181-unit housing complex with underground parking. The project is anticipated to create five new jobs, increase the local tax base by $640,038 and leverage $40 million in private investment. Matching funds will be provided by the city and the developer. DEED previously awarded redevelopment funding [ [link removed] ] for this project.

"Local contact – Brett Angell, (763) 428-0915"

*Roseville Economic Development Authority (EDA) – Twin Lakes Technology Center*

DEED awarded $2,090,850 in cleanup funding to the Roseville EDA for this 12.51-acre site contaminated with petroleum and other contaminants. Previously used as a trucking terminal and maintenance shop, the site will be redeveloped into a 152,250-square-foot light industrial tech building. The project is anticipated to create 25 jobs, retain 125 jobs, increase the local tax base by $647,464 and leverage $22 million in private investment. Matching funds will be provided by tax increment financing, the developer and other grant sources. DEED previously awarded redevelopment funding [ [link removed] ] for this project.

"Local contact – Jeanne Kelsey, (651) 792-7086"

*City of St. Louis Park – Beltline Station Development*

DEED awarded $303,071 in cleanup funding to the city of St. Louis Park for this 6.6-acre site contaminated with volatile organic compounds. Historically occupied by a machine shop, a factory and a commercial building, the site will be redeveloped into three buildings with 21,800 square feet of commercial space, 298 market-rate and 82 affordable residential units, and a large parking garage. The project is anticipated to create 67 jobs, increase the local tax base by more than $1.4 million and leverage $119 million in private investment. Matching funds will be provided by the developer.

"Local contact – Dean Porter-Nelson, (952) 928-2841"

*City of St. Paul – Face 2 Face at Arcade*

DEED awarded $211,461 in cleanup funding to the city of St. Paul for this 0.22-acre site contaminated with petroleum and other contaminants. Historically used as a gasoline filling station, the site will be redeveloped into 24 units of affordable housing for homeless youth with support services space on the lower level. The project is anticipated to create four new jobs, retain one job, increase the local tax base by $12,000 and leverage $4.9 million in private investment. Matching funds will be provided by the developer and other grant sources.

"Local contact – Angela Riffe, (651) 266-8524"

*City of West St. Paul – Thompson Oaks Redevelopment*

DEED awarded $137,088 in cleanup funding to the city of West. St. Paul for this 11.32-acre site contaminated with volatile organic compounds and other contaminants. Historically used as a distribution center, a fitness center and other commercial purposes, the site will be developed into a five-story, 272-unit market-rate apartment building, as well as 19 townhomes and the commercial reuse/renovation of an existing 7,000-square-foot building. The project is anticipated to create 17 jobs, increase the local property tax base by more than $1 million and leverage $125 million in private investment. Matching funds will be provided by the developer.

"Local contact – Ben Boike, (651) 522-4140"

"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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