ST. PAUL - The Minnesota Department of Employment and Economic Development (DEED) awarded four grants and one loan for redevelopment projects in Minnesota that are expected to create or retain more than 5,700 jobs.

The agency awarded $1.6 million from its Redevelopment Grant Program for two projects in Minneapolis and two others in Edina and Mankato. In addition, Renville received a $100,000 loan from DEED's Demolition Loan Program.

"These funds are being put to good use cleaning up blighted properties, and breathing new life into our communities," said Governor Mark Dayton, who working with the Legislature in 2013 invested $9.6 million in DEED's redevelopment account. "Local economies stand to benefit greatly from these efforts. The thousands of jobs these projects will create and support are well worth the investment."

"Redevelopment grants and loans are effective tools for encouraging economic development and new jobs," added DEED Commissioner Katie Clark Sieben. "A new hotel, commercial buildings, housing and mixed-use development soon will be under way thanks to this round of funding."

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 demolition, infrastructure and other project-related improvements. Recipients must provide matching funds.

The Demolition Loan Program helps communities with the costs of demolishing blighted buildings on sites that have future development potential but where there are no current development plans.
Redevelopment Grant Program, September 2014

City of Edina, Pentagon Park, $625,000
Edina received $625,000 for demolition costs at the 8-acre Pentagon Park redevelopment project. A 200-room hotel and 250,000-square-foot office building are planned at the site. Officials expect the project to create 293 jobs, retain 268 jobs and increase the tax base by $2.8 million. The developer, city and Metropolitan Council will provide matching funds.

City of Mankato, Bridge Plaza, $204,175
Mankato was awarded $204,175 for abatement, demolition, infrastructure and geotechnical soil correction on the 1.94-acre site. A seven-story mixed-use building, including 35,000 square feet of office space and 18 residential units, is planned. The project will create 19 jobs and retain 59 jobs. The developer will provide matching funds.

City of Minneapolis, Broadway Flats, $300,000
Minneapolis received $300,000 to relocate electrical utilities on the 1.85-acre site. The parcel will be redeveloped into a mixed-use building with 103 affordable apartments and 19,000 square feet of retail space. The project will create nine jobs, retain six jobs and increase the tax base by $137,031. Matching funds will come from the Metropolitan Council, Minnesota Housing Finance Agency, Hennepin County, city and developer.

City of Minneapolis, Downtown East, $500,000
Minneapolis was awarded $500,000 for demolition costs on the 8.8-acre Downtown East project. Two 20-story office towers, 193 housing units and 26,400 square feet of retail space are planned. Officials expect the project to create 88 jobs, retain 5,000 jobs and increase the tax base by $3.9 million. The city, developer and Metropolitan Council will provide matching funds.

Demolition Loan Program, September 2014
City of Renville, Downtown Properties, $100,000
Renville received a $100,000 loan for abatement and the demolition of three buildings in the downtown area. Businesses, housing or a startup business incubator are among the projects considered suitable for the site. The project could create up to eight jobs. The city will issue bonds to repay the loan.