DEED Awards $50,000 to Gallery Flats Project

, the Department of Employment and Economic Development announced it’s awarding $50,000 in cleanup funds for the Park Nicollet portion of the project.

The money will be used to clean up arsenic and asbestos on the 1.81-acre site at 815 First St. S., according to a Thursday DEED news release.

Developer Klodt Cos. plans a mixed-use project on the property and the neighboring Lutheran Digest site that will have a total of 163 apartments. The development will create nine jobs, increase the tax base by $480,525 and leverage $24.4 million in private investment, according to DEED.

Hennepin County, the Met Council and Klodt are paying for the remaining cleanup costs.

The Park Nicollet funding is part of nearly $5.3 million in grants to investigate or clean up 14 sites. The projects benefitting from the cleanup money will create 1,146 jobs and retain another 339 jobs, according to DEED.

“DEED’s cleanup program is putting polluted sites back into use and creating jobs in Minnesota,” the news release quoted DEED Commissioner Katie Clark Sieben. “Retail developments, apartment buildings, a light-industrial project and mixed-use complexes are among the projects that will be under way soon thanks to this program.”  

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Contaminated Site Cleanup and Investigation Grant Awards

City of Baudette, Baudette Oil, $113,135
The city of Baudette is awarded $113,135 in cleanup funding for this 0.86-acre site contaminated with petroleum and other pollutants. Former uses of the site include a gas station. The redevelopment will include two small commercial buildings and will create nine jobs, retain four jobs, increase the tax base by $15,100 and leverage $410,000 in private investment.  The city will pay remaining cleanup activities.

City of Brooklyn Center Economic Development Authority (EDA), Lifetime Fitness site, $211,348
The Brooklyn Center EDA was awarded $740,000 in cleanup funds in June and will receive an additional $211,348 for this 8.39-acre site contaminated with petroleum and other pollutants. This former site of a health club will be redeveloped into a 90,000-square-foot multi-tenant light industrial building. The new development will create 25 jobs, retain 181 jobs, increase the tax base by $305,860 and leverage $9.23 million in private investment. Remaining cleanup costs will be paid by the developer.

City of Duluth EDA, Stryker Bay redevelopment site, $303,787
The Duluth EDA is awarded $303,787 in cleanup funds for this 6.65-acre site contaminated with lead, cyanide, benzo(a)pyrene, phenols and volatile organic compounds. Previous activity on the site includes coke and coal refining and meatpacking. It will be redeveloped into a 7,200-square-foot, slab-on-grade building that will function as an office, warehouse and fabrication shop for a local company. The new development will create four jobs, retain one job, increase the tax base by $20,859 and leverage about $500,000 in private investment. The developer will pay remaining cleanup activities.

City of Eagan EDA, Cedar Grove redevelopment site, $596,955
The Eagan EDA is awarded $596,955 in cleanup funding for this 40-acre site contaminated with petroleum and other pollutants. Gas stations and a mall were on the site previously. The redevelopment will include 440,000 square feet of retail space. The new development will create 880 jobs, increase the city's tax base by $2.8 million and leverage $109 million in private investment. Remaining cleanup activities will be paid by the city.

City of Hopkins, former Park Nicollet Clinic, $50,000
The city of Hopkins is awarded $50,000 in cleanup funds for this 1.81-acre site contaminated with arsenic and asbestos. This former site of a bank and medical clinic will be redeveloped into 163 market-rate rental units with underground parking and 4,821 square feet of retail space. The project will create nine jobs, increase the tax base by $480,525 and leverage $24.4 million in private investment.  Hennepin County, the Met Council and the developer will pay remaining cleanup costs.

City of Hutchinson, Depot Marketplace, $292,764
The city of Hutchinson is awarded $292,764 in cleanup funds for this 1.58-acre site contaminated with petroleum, arsenic and other pollutants. Formerly a railroad yard, the site will be redeveloped into a farmers market and museum. Remaining cleanup costs will be covered by the city.

City of Minneapolis, 4250 Upton Ave., $174,111
The city of Minneapolis is awarded $174,111 in cleanup funds for this 0.56-acre site contaminated with diesel range organics, gasoline range organics, lead and arsenic. Previous uses on the site include a gas station and battery repair. It will be redeveloped into a three-story mixed-use building containing 6,000 square feet of commercial/retail space and 18 market-rate condominiums. The new development will create 14 jobs, retain two jobs, increase the tax base by $301,610 and leverage about $13 million in private investment. The developer will pay remaining cleanup costs

City of Minneapolis, Mill and Main Phase 2, $752,350
The city of Minneapolis is awarded $752,350 in cleanup funds for this 1.3-acre site contaminated with diesel range organics, heavy metals, volatile organic compounds and polynuclear aromatic hydrocarbons. A tannery and a flour processing and packaging business previously operated on the site. It will be redeveloped into a seven-story, 276,720-square-foot building offering 182 market-rate apartment units. The new development will create five jobs, increase the tax base by $479,990 and leverage about $35 million in private investment. Remaining cleanup costs will be covered by the developer.

City of Minneapolis, Station at Washington, $103,500
The city of Minneapolis is awarded $103,500 in cleanup funding for this 0.5-acre site contaminated with petroleum and other pollutants. The site formerly housed a gas station, restaurant and private home. The redevelopment will include 97 units of market-rate student housing and 11,200 square feet of commercial space on the first floor. The new development will create 27 jobs, increase the city's tax base by $429,855 and leverage $12 million in private investment. The cost of remaining cleanup activities will be covered by the developer.

City of Minneapolis, Northern Star redevelopment site, $1 million
The city of Minneapolis is awarded $1 million in cleanup funding for this 7.46-acre site contaminated with petroleum and other pollutants. The site has had several commercial and industrial uses since the 1800s, but all structures have been demolished. The redevelopment will include 50,000 square feet of commercial space for a brewery and restaurant. The new development will create 67 jobs, retain 15 jobs, increase the city's tax base by $193,064 and leverage $19 million in private investment. The Metropolitan Council, Hennepin County and the developer will pay for remaining cleanup costs.

City of Minneapolis, The Natural, $151,367
The city of Minneapolis is awarded $151,367 in cleanup funds for this 0.39-acre site contaminated with gasoline range organics, polynuclear aromatic hydrocarbons, and heavy metals. Previous uses on the site include a junkyard, gas station and auto repair. It will be redeveloped into a six-story mixed-use building offering 4,181 square feet of commercial space and 78 market-rate apartments. The new development will create 10 jobs, increase the tax base by $231,024 and leverage about $11.5 million in private investment. Remaining cleanup costs will be paid by the developer.

City of Minneapolis, WaHu student housing, $460,895
The city of Minneapolis is awarded $460,895 in cleanup funding for this 1.935-acre site contaminated with petroleum and other pollutants. An Arby's and plasma center on the site will be replaced with 30,000 square feet of commercial space and 333 units of housing. The new development will create 65 jobs, increase the city's tax base by more than $1 million and leverage $65 million in private investment. Remaining cleanup costs will be paid by the Met Council, Hennepin County and the developer.

City of Minneapolis, Washburn Center for Children, $130,416
The city of Minneapolis is awarded $130,416 in cleanup funds for this 2.42-acre site contaminated with petroleum and other pollutants. Formerly the location of a bearing manufacturer and other businesses, the site will be redeveloped into a 52,276-square-foot human services facility for children with emotional, social and behavioral problems and their families. The new development will create 10 jobs, retain 100 jobs and leverage $16 million in private investment. Remaining cleanup costs will be paid by Hennepin County and the developer.

City of St. Paul, Lowertown ballpark, $1 million
The city of St. Paul is awarded $1 million in cleanup grant funds for this 9.7-acre site contaminated with volatile organic compounds, polynuclear aromatic hydrocarbons, diesel range organics and lead. Coal gas, personal care products and paper correction fluid all have been manufactured on the site. The land will be redeveloped into a regional baseball park, creating 21 jobs, retaining 36 jobs and leveraging $10 million of private investments. The required match will be provided by the city.

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