DEED awards $6M in contamination cleanup and investigation funds

Thirteen communities are expected to receive some of more than $6 million in contamination cleanup and investigation funding from Minnesota's Department of Employment and Economic Development.

These grants pay up to 75% of costs to assess and clean up polluted sites for public or private redevelopment.

“The Contamination Cleanup grants support communities’ efforts to remediate contaminated land to rehabilitate it into productive spaces for business or housing development, or other projects supporting community economic growth,” stated DEED Commissioner Matt Varilek in a news release.

Duluth, Hermantown and Ely are three Northern Minnesota communities receiving funds in this grant cycle.

The Duluth Economic Development Authority is slated to receive more than $2.1 million in cleanup funding for a 12-acre site contaminated with petroleum and other heavy metals.

The site was historically used by petroleum companies and other industries, such as a scrap iron and metal facility. The site is expected to be developed into two, five-story apartment buildings, creating 509 new housing units.

Plans also include the construction of a pad-ready site for future hotel development. The project is anticipated to create 12 jobs, increase the local property tax base by more than $1.5 million and leverage $129 million of private investment. Matching funds will be provided by the Duluth EDA, tax increment financing and the developer.

The city of Ely will receive more than $250,000 in DEED funding to clean up a 3-acre site contaminated with petroleum and other metals.

The site was historically used as a railroad depot, and the redevelopment plans include historic preservation of a portion of the original railroad depot and a 1,500-square-foot addition for a brewery, bar, restaurant and event center.

The project is anticipated to create 22 new jobs, increase the local tax base by $27,368 and leverage $1.6 million in private investment. Matching funds will be provided by the city and the developer. DEED previously awarded cleanup and investigation funding for this project.

DEED awarded more than $50,000 in cleanup funding to the city of Hermantown for a 10-acre site contaminated with lead.

The site, once a farmstead, will be developed into 20 slab-on-grade market-rate rental townhomes for seniors. This project will complement a three-story senior living complex completed in 2024 on the northeast portion of the site. The project is anticipated to create one job, retain 42 jobs, increase the local property tax base by $95,799 and leverage $11 million in private investment. Matching funds will be provided by the developer.