DEED Redevelopment Grant Program
Overview of Grant Program
The State of Minnesota, through its Department of Employment and Economic Development [DEED], administers a Redevelopment Grant Program. There are, at most, two grant rounds per year, with February 1 and August 1 application deadlines. However, legislative funding for this program has been intermittent; sometimes there is only one round per year, or no rounds at all. (Check with City staff to determine when the next round is likely to occur.)
DEED’s Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use. Grants pay up to half of eligible redevelopment costs for a qualifying site, with a 50% local match (typically paid by the owner or developer). Grants can pay for land acquisition, demolition, infrastructure improvements, soil stabilization when infill is required, ponding or other environmental infrastructure and adaptive reuse of buildings, including remedial activities at sites where a subsequent redevelopment will occur.
Amount of Grant Funding Available
In a “typical” grant round, DEED provides approximately $1 million of grant funding. Of that amount, approximately half is usually awarded to Greater Minnesota sites (if enough eligible applications are received); the remainder is awarded to sites located in the seven-county Twin Cities metropolitan area. Funding is available for private sector projects that do not require new public infrastructure, along with projects that (a) will be constructed on publicly owned land and have a public purpose or (b) require new public infrastructure. For more specific information, see DEED’s on-line "Overview" or contact DEED staff at 651-259-7449.
The City's Pre-Application Process
For a property or project located within the City of Minneapolis, the City must (in most cases) be the “official” applicant, and/or the City Council must approve a resolution in support of the application, in order for that application to be considered by DEED. (However, the grant application must actually be prepared by the owner/developer that is seeking the funding.) The City’s pre-application deadline is typically about two months in advance of DEED’s final application deadline, but please contact City staff for specific details regarding the City’s pre-application deadlines and procedures.
City Grant-Related Fees
The City of Minneapolis has a grant application processing fee. An application fee of $750 (payable to the City of Minneapolis) is due with your City pre-application. PLEASE NOTE that application fees are non-refundable, and shall be retained regardless of whether an application (a) is ultimately submitted to DEED or (b) results in a grant award.
The City of Minneapolis also has a grant award administration fee in an amount equal to 7% of the amount of any awarded grant(s). Neither grant funds nor City funds may be used to pay this fee. A lower fee (3%) will be applied to housing projects that comply with the City’s Affordable Housing Policy (20% or more of the housing units at or below 60% of the Area Median Income) and commercial/industrial projects located within areas designated as “intervene” (see list) by the City’s Great Streets Neighborhood Business District Program. For projects in compliance with the City’s affordable housing policy, the grant award administration fee is due at the time of closing with the project’s primary lender. For all other projects, the grant award administration fee is due when the Funding Agreement between the City and the developer is executed. Awarded grant funds are not available until the project is fully-funded and ready to begin construction.
City Contracting Requirements
If DEED’s Redevelopment Grant Program awards funds to the City on behalf of a project, the developer of that project will be required to enter into a subrecipient agreement with the City and comply with any applicable City requirements. These requirements vary depending upon the type of development and the source and amount of public investment, and may include, without limitation, the payment of prevailing wages, the preparation of affirmative action plans, competitive bidding, compliance with the Apprenticeship Training Policy and/or the Small and Underutilized Business Enterprise Program, the Business Subsidy Act/Living Wage Ordinance, and reporting requirements for any of the aforementioned programs.
DEED Project Timing Requirements
PLEASE NOTE that DEED grant agreements have a project commencement date, which is typically about one year after the grant application deadline. Contact City staff to determine the project commencement deadline for any grant round in which you are interested. Do not submit a pre-application to the City unless you are certain that your project will begin by that date. Also, please note that if the project fails to substantially provide the public benefits stated in the application within five (5) years of the grant award date, the commissioner may require that 100% of the grant amount be repaid to DEED.
Email Distribution List
If you are involved in a project that currently plans to seek a grant in the February 1, 2017 round of DEED’s Redevelopment Grant Program, please notify Kevin Carroll, who is creating a separate email distribution list for prospective grant applicants and other interested parties. The email distribution list will be used to provide periodic updates regarding the process and to solicit any supplemental information that the City may need in connection with its review of the submitted pre-applications.
For More Information
Kevin Carroll, Principal Project Coordinator
Minneapolis Department of Community Planning and Economic Development
105 Fifth Avenue South, Suite 200
Minneapolis, MN 55401
Last updated Dec 20, 2018