Hotel Mankato Site Awarded $323,887 in DEED Cleanup Funding
The Minnesota Department of Employment and Economic Development (DEED) announced $6.9 million for 11 communities to assess and clean up contaminated sites for private or public redevelopment. The grants are expected to create 481 new jobs, collectively increase local tax bases by $4.7 million and leverage more than $395 million in private investment.
The Contamination Cleanup and Investigation grants pay up to 75% of the costs to assess and clean up polluted sites. Cities, port authorities, housing and redevelopment authorities, economic development authorities or counties with known or suspected soil or groundwater contamination are eligible. In addition to creating jobs and growing the tax base, the 12 grants announced today will assess or clean up 187 acres and create 582 housing units.
“DEED recognizes the importance of being able to clean up land that might otherwise be deemed inoperative,” said DEED Commissioner Matt Varilek. “That’s why the Contamination Cleanup and Investigation grant program is so great — it allows Minnesota cities to further pursue economic growth in locations where that once might have not been possible.”
Since its inception in 1993, the Contamination Cleanup and Investigation Grant Program has awarded over $212 million in grants, which helped assess and clean up 4,212 acres of land – contributing to the creation or retention of 51,902 jobs and clearing the way for 26,673 new housing units. The program has also leveraged over $10.4 billion in private investments and added more than $153 million to local tax bases.
DEED awarded the city of Mankato $323,887 for this 2-acre site contaminated with petroleum and other contaminants. Historically occupied by a hotel and an auto dealership, this site will be redeveloped into one four-story, 126-room hotel, and one 10-story, 156-room hotel and restaurant. The two hotels will be joined by a common lobby and one level of shared underground parking. Located at 101 E. Mankato St., the project is anticipated to create 111 jobs, increase the property tax base by $566,738 and leverage $81.6 million of private investment. Matching funds will be provided by the developer and tax increment financing.