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State redevelopment grants help fertilizer plant, newspaper and brewery projects

The state’s latest development grants to help blighted property will send $2.4 million to help 11 projects around the state.

The state’s latest round of grants to help redevelop blighted property will send $2.4 million to 11 projects around the state, including efforts to help convert a potato wash plant into a fertilizer plant in Barnesville and to tear down an old motel in Ortonville to build a new newspaper building.

The state’s Department of Employment and Economic Development’s Redevelopment Grants will help with projects in Barnesville, Clara City, Duluth, Hendricks, Hinckley, Minneapolis (three), Northfield, Ortonville and St. Paul.

DEED Commissioner Mark Phillips said: “With the help of this program, new jobs are being created and blighted properties returned to productive use.”

DEED’s description of the 11 projects:

  • City of Barnesville, Potato Wash Plant — $82,125
     for demolition and soil stabilization at this 6.7-acre site. The site, which contains a former potato wash plant, will be redeveloped into a 29,900-square-foot dry fertilizer plant. This project is expected to create four jobs, retain six jobs and increase the tax base by $81,728. Other sources of funding for the project include the city and developer.
  • City of Clara City, Clara City Apartments $35,050
     for demolition and infrastructure costs associated with redeveloping this 2.02-acre site. Part of a former public school building on the site will be converted into 12 apartment units. This project is expected to increase the tax base by $7,634. The developer is also contributing funding for the project.
  • City of Duluth Economic Development Authority (EDA), Bayfront Pier B$968,774
    for demolition and infrastructure costs associated with redeveloping this 5.83-acre site. The site was formerly used for a cement plant, lime manufacturing operation and other industrial purposes. It will be redeveloped into a 116-room hotel, 24 condos, retail and recreational rentals. This project is expected to create 85 jobs and increase the tax base by nearly $700,000. Other funding for this project will come from tax increment financing and the developer.
  • City of Hendricks Economic Development Authority, Hendricks Creamery $55,753 
    for demolition and infrastructure costs associated with redeveloping this 0.16-acre site. The site, used as a creamery beginning in the early 1900s, will be redeveloped into a small brewery. The project is expected to create three jobs and increase the tax base by $2,484. Other funding sources for this project include tax increment financing, the Hendricks EDA, investors and the developer.
  • City of Hinckley, Daggetts $16,530
    for demolition costs associated with redeveloping this 0.16-acre site. A building on the site had various commercial uses from the mid-1900s before burning down in 2000, leaving a cement slab and basement. A neighboring grocery store will expand on the site, adding cooler space and a smokehouse. This project is expected to create two jobs, retain 10 jobs and increase the tax base by $4,502. The developer will provide other funding for the project.
  • City of Minneapolis, 430 Oak Grove St. —  $500,000
    for asbestos abatement, demolition and infrastructure costs associated with redeveloping this 0.86-acre site. The site, which has been used primarily for offices since 1923, will be redeveloped into 75 housing units. This project is expected to create four jobs and increase the tax base by $191,921. The Metropolitan Council, Hennepin County and the developer are other sources of funding for the project.
  • City of Minneapolis, 700 Central Ave. $180,500
    for demolition and infrastructure costs associated with redeveloping this 0.95-acre site. The site was formerly used by a storage and moving company and was a furniture warehouse in the early 1900s. The site will be redeveloped into 255 apartments and will include 80,000 square feet of office, retail and restaurant space. This project is expected to create 20 jobs and increase the tax base by $347,798. The developer is also contributing funding for the project.
  • City of Minneapolis, Pillsbury Lofts $200,000
    for interior demolition and infrastructure costs associated with redeveloping this 4.81-acre site. The site, home to the Pillsbury flour mills for most of the 20th century, will be redeveloped into 225 units of affordable housing for artists. This project is expected to create six jobs and increase the tax base by $167,471. Other sources of funding for this project include the developer and tax increment financing.
  • City of Northfield, The Key $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 being redeveloped by a neighboring restaurant, 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.
  • City of Ortonville Economic Development Authority (EDA), Ortonville Independent $22,375
    for demolition costs on this 2.06-acre site. An old motel is currently on the site, which will be redeveloped for a 7,920-square-foot building for the local newspaper. The project is expected to create two jobs, retain 13 jobs and increase the tax base by $4,282. The EDA and city are providing other funding for the project.
  • St. Paul Port Authority, Forest and East Seventh streets $355,932
    for demolition and infrastructure costs associated with redeveloping this 6.36-acre site. This former 3M complex will be redeveloped into 29,200 square feet of office space. The project is expected to create 61 jobs, retain 150 jobs and increase the tax base by $230,000. Other funding for this project will come from the St. Paul Port Authority Development Fund and the developer.