The five projects are expected to create or retain 185 jobs.



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




April 1, 2026

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DEED Awards More Than $2 Million for Redevelopment Projects   

*St. Paul, MN* – The Minnesota Department of Employment and Economic Development (DEED) today announced $2.08 million in awards for five redevelopment and demolition projects statewide. The projects will collectively create or retain 185 jobs, increase local tax bases by nearly $1 million and leverage more than $90.6 million in private investment.

The Redevelopment Grant Program [ [link removed] ] helps communities remove blighted structures and upgrade infrastructure for more productive industrial, residential or commercial uses. The Demolition Loan Program [ [link removed] ] helps communities with the removal of dilapidated and unsafe structures to prep sites for future development.

“The Redevelopment Grant Program and Demolition Loan Program are economic development initiatives that help communities restore unusable sites so they can be used productively,” said *DEED Commissioner Matt Varilek*. “Redeveloping blighted property is an effective way to boost local economies and create thriving communities.”

Since its inception in 1998, DEED has awarded more than $90.6 million in Redevelopment Grant funding, creating or retaining nearly 31,000 jobs, attracting over $4.3 billion in private investment and creating more than 10,000 housing units – almost 3,000 of which are considered affordable.

To date, DEED has awarded more than $3.4 million in Demolition Loans, reclaiming nearly 67 acres of blighted property.

Details on Redevelopment Grant recipients:

*Dundas – Cannon River Apartments*

DEED awarded the city of Dundas $76,529 for abatement and building demolition on a 3.27-acre site. Historically used to store and distribute fertilizers and other agricultural chemicals, the site will be redeveloped into a four-story, 125,000-square-foot, mixed-use building with 116 market-rate dwelling units, first floor commercial space and parking. This project is anticipated to create 10 jobs, increase the local property tax base by $277,734 and leverage $22 million of private investment. The developer will provide matching funds.

Local contact – Jenelle Teppen, (507) 645-2852

*Kenyon – Sunset Homes Redevelopment*

DEED awarded the city of Kenyon $180,975 for abatement and building demolition on this 0.31-acre site. Formerly a long-term care facility, the site will be redeveloped into a three-story, 36-unit affordable apartment building. It is anticipated this project will create three jobs, increase the local property tax base by $98,950 and leverage $7.4 million of private investment. Matching funds will be provided by the developer and tax increment financing.

Local contact – Scott Lehner, (507) 789-6415

*Mankato – Front Street Plaza*

DEED awarded the city of Mankato $1.16 million for demolition, soil stabilization and public infrastructure improvements on this 2.57-acre site. Historically, the site was used as an auto repair shop, lumber yard, and for a variety of commercial and industrial purposes. Currently occupied by a commercial building and parking lot, the site will be redeveloped into a four-story, 35,000-square-foot office building; a six-story, 150-unit apartment building with 31,500 square feet of retail space; and a two-story parking ramp. This project is anticipated to create 45 jobs, retain 113 jobs, increase the tax base by $585,992 and leverage $60 million of private investment. Matching funds will be provided by the developer and tax increment financing.

Local contact – Courtney Kramlinger, (507) 387-8711

*Melrose – Downtown Redevelopment*

DEED awarded the city of Melrose $669,700 for building demolition and public infrastructure improvements on this 4.06-acre site. Formerly a turkey processing plant, the site will be partially rehabilitated as a 20,800-square-foot warehouse space with loading docks. It is anticipated this project will create five jobs, retain nine jobs, increase the tax base by $27,380 and leverage $604,600 of private investment. The city and the developer will provide matching funds.

Local contact – Sheila Hellermann, (320) 256-4278

 

Details on Demolition Loan recipients:

*Grand Rapids Economic Development Authority (EDA) – Hwy. 2 West Redevelopment Project*

DEED awarded the Grand Rapids EDA $420,000 for building demolition on this 1.52-acre site. Historically used as a gas station, oil facility and agricultural chemical storage, this site has the potential to support two commercial structures with shared parking. The EDA will issue a revenue note backed by a City General Obligation Tax Abatement bond to secure the loan.

Local contact – Rob Mattei, (218) 326-7622

"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] ], Do Business [ [link removed] ], _""_CareerForce.MN.gov [ [link removed] ]_"", or by following us on social media [ [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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