Northfield Gets $56,000 Grant to Help with Former Key Property

The Minnesota Department of Employment and Economic Development has awarded $2.4 million in grants for 11 projects to help offset the costs of reclaiming and redeveloping blighted property. The cities of Barnesville, Clara City, Duluth, Hendricks, Hinckley, Minneapolis (three), Northfield, Ortonville and St. Paul received the grants under DEED’s Redevelopment Grant Program.

“The Redevelopment Grant Program contributes to the economic well-being of communities around the state,” said DEED Commissioner Mark Phillips. “With the help of this program, new jobs are being created and blighted properties returned to productive use.”

Northfield received $55,825 for demolition and infrastructure costs associated with redeveloping this 0.03-acre site. The site, which has been used for commercial activities since the early 1900s, is by , which is adding seating space and a second-floor apartment. This project is expected to create two jobs, retain an additional six jobs and increase the tax base by $8,000. The developer will provide other funding.

Phillips said developers generally avoid projects in blighted areas because of the costs and complications associated with reclaiming previously developed land. Without the financial incentives offered through the Redevelopment Grant Program, new development on blighted sites would be unlikely to occur, he said.

The Redevelopment Grant 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 $58.9 million, funded 135 projects statewide and reclaimed 1,167 acres of blighted property. The program has created 9,312 new jobs, retained 9,889 existing jobs and generated $24.2 million in new tax revenue. The program has attracted more than $1.6 billion in private investment and led to the creation of 2,760 units of market-rate housing and 1,643 units of affordable housing.

Editor's note: This is a press release from the Department of Employment and Economic Development.

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