DEED Redevelopment Grant Program
The State of Minnesota, through its Department of Employment and Economic Development [DEED], will soon be conducting another round of its Redevelopment Grant Program. Applications will be due to DEED on August 1, 2014. See below for more information about eligible costs, match requirements and related matters. Funding is available in this round 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. PLEASE NOTE that DEED grant agreements have a commencement date, which in this particular case is expected to be December 31, 2015. Do not submit an 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 5 years of the grant award date, the commissioner may require that 100% of the grant amount be repaid to DEED.
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 application process outlined immediately below is designed to generate the City Council resolution required by DEED.
CITY PRE-APPLICATION REQUIREMENT; GRANT ASSESSMENT WORKSHEET
If you wish or intend to apply for funding in the August 1, 2014 round of the DEED Redevelopment Grant Program, you will need to prepare and submit a pre-application to the City by 12:00 noon on June 9, 2014. This pre-application must be on the actual application form required by DEED. ALSO, please note that your pre-application must be accompanied by a completed Grant Assessment Worksheet. Pre-applications and GAWs should be delivered to the address that appears at the end of this notice. Pre-applications and GAWs received by the City’s June 9, 2014 deadline and approved by City staff will be considered by the Community Development Committee of the Minneapolis City Council in July 22, 2014.
Complete City Schedule for DEED Redevelopment Grant Program (August 1, 2014 Round)
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. DEED has not yet specified the amount of grant funding that will be available in this round, but it will likely be at least $1.4 million. Of that amount, approximately half will likely be awarded to Greater Minnesota sites (if enough eligible applications are received); the remainder of the funding will go to sites located in the seven-county Twin Cities metropolitan area. For more specific information, see DEED’s on-line "Overview" or contact DEED staff at 651-259-7449.
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 on June 9, 2014. 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.
If you are involved in a project that currently plans to seek a grant in the August 1, 2014 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 further information contact:
Kevin Carroll, Principal Project Coordinator
Minneapolis Department of Community Planning and Economic Development
105 Fifth Avenue South, Suite 200
Minneapolis, MN 55401
Last updated May 15, 2014