City of Mankato Awarded 1.16 Million by DEED for Front Street Plaza Project
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 helps communities remove blighted structures and upgrade infrastructure for more productive industrial, residential or commercial uses. The Demolition Loan Program 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.
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.
