3 Northern MN cities awarded contamination cleanup grants

FLOODWOOD — The Department of Employment and Economic Development awarded Contamination Cleanup and Investigation grants to three Northern Minnesota cities in its latest round of funding.

Floodwood, Virginia and Two Habors will use the money to assess and clean up sites for private redevelopment. The grant covers up to 75% of the costs of removing contamination at approved polluted sites.

The Floodwood West Infrastructure and Housing Expansion Project was awarded $50,000 for a 127.25-acre site that's historically been used for agricultural cropland and possibly vehicle maintenance.

The city plans to redevelop the site into a mixed-use area that will include 30 rental units, 34 owner-occupied units, light industrial facilities and new public streets and utilities.

The city expects the project will create 14 new jobs, retain 14 jobs and increase the local tax base by $127,000. Matching funds will be paid by the city.

Two Harbors was also awarded $50,000. The city will use the money on the former J&J Castings, an 8.4-acre foundry site that's been used for rail maintenance and manufacturing.

The site will be redeveloped into a 118-room hotel with restaurants and an event space.

The project is expected to create 58 jobs and increase the tax base by $1.4 million. The city will also pay matching funds.

Virginia received the largest award: $107,513 for the Pohaki lumberyard expansion. The 1-acre site is tainted with petroleum and other contaminants and has previously housed a filling station, an explosives company, a railroad corridor and a retail lumberyard.

Pohaki will add a 15,000 square-foot, two-story addition to its retail space and an 8,500 square-foot warehouse.

The project is expected to create 13 jobs, retain 13 jobs, increase the tax base by $112,258 and leverage $3 million of private investment. The developer will provide matching funds.