Cleanup and Investigation Grant Program

The Department of Employment and Economic Development (DEED) in Minnesota, through its Brownfields and Redevelopment Unit, offers financial support to local governments via the Contamination Cleanup and Investigation and RAP Development Grant Program. This initiative aims to assist with the environmental investigation and cleanup of soil, soil vapor, and groundwater contamination at sites previously or currently developed. The goal is to mitigate the challenges associated with redeveloping contaminated properties, which are often more complex and costly to reuse than undeveloped land. The grant supports new parties engaged in the redevelopment process and does not fund those with a long-term operational history on the site. Approximately $4 million is available for grants under this program. For Investigation and RAP Development Grants, the maximum award is $50,000. A local match of at least 25% is required per site, with at least 12% coming from the municipality's general fund or other unrestricted local sources. The remainder can come from tax increments or other federal, state, or regional funds for brownfield redevelopment. Funding decisions are guided by statutory criteria focused on public benefits relative to public costs, including environmental health, tax base increases, job creation or retention, removal of blight, and development feasibility. Applications must earn a minimum of 50 points during evaluation to be considered for an award. Eligible applicants include cities, counties, federally recognized tribes, housing and redevelopment authorities, economic development authorities, and port authorities. Additional conditions apply, such as participation in the Metropolitan Council Local Housing Incentives Program for municipalities in the Twin Cities Metropolitan Area. Sites scheduled for federal or state-level Superfund funding or lacking qualifying contamination are not eligible. The program supports projects that will significantly increase the property tax base or be used for publicly owned or tax-exempt facilities, such as housing, commercial, office, or mixed-use developments. Applications must be submitted with one paper copy and two electronic copies (on two separate flash drives) and must be complete to qualify. Submissions are due by 4:00 p.m. on November 3, 2025, and may be mailed, couriered, or delivered in person to the DEED office on the 12th floor of the Great Northern Building at 180 East Fifth Street, Suite 1200, St. Paul, MN 55101. Email submissions are not accepted. The application packet must be securely assembled and include all required materials, such as governing body resolutions. The grant evaluation and award process involves DEED's Brownfields and Redevelopment Unit and the Minnesota Pollution Control Agency. Recommendations are submitted to the DEED Commissioner, and award announcements are expected approximately eight weeks after the submission deadline. Additional administrative requirements include a financial risk assessment, compliance with state contracting laws, and ongoing grant monitoring and reporting. Grantees are required to submit annual progress reports by July 25 each year and must comply with prevailing wage laws for qualifying economic development projects. To support applicants, DEED is hosting information sessions across Minnesota, including events in Crosby on August 25, Clara City on August 26, Plymouth on September 3, and Inver Grove Heights on September 4, 2025. For application assistance, contact the Brownfields and Redevelopment Unit at 651-259-7451. Additional guidance is available by reaching out to Amber Merritt at 651-259-7449 or amber.merritt@state.mn.us.

Submit one paper and two electronic flash drive copies. Ensure governing body resolution is included. Label all attachments clearly.