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AGENDA RECOMMENDATION |
Consent Calendar 6.C.
City Council Regular Meeting
- Meeting Date:
- 01/26/2026
Agenda Item:
Resolution authorizing the City Manager to submit a Redevelopment Grant Application to the Minnesota Department of Employment and Economic Development.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The Minnesota Department of Employment and Economic Development (DEED) is accepting applications for the redevelopment grant program. The program offers grants to assist communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use. Eligible costs include building and site demolition, infrastructure, soil stabilization, pounding, or other environmental infrastructure, asbestos abatement and lead paint mitigation. Grants can assist with up to 50 percent of the costs to redevelop sites and require a 50 percent local match.
The next grant round has applications due February 1, 2026. DEED anticipates awarding at least half of the grant funds to sites located outside the seven-county Twin Cities metropolitan area.
Front Street Plaza, LLC plans to redevelop the property located at 602-634 S. Front Street and 112 W. Liberty Street. The site was developed by 1884. Historical uses on the site include dwellings, shoe making, livery, saloon, repair shop, wood working, machinery, lumberyard, and carriage repository, and other accessory structures.
The proposed redevelopment would include demolishing the existing buildings and constructing a 2-story parking ramp along Riverfront Drive, 6-story mixed-use building along Front Street which would include a 23,000 SF grocer, coffee shop, restaurant, and 150 apartment units. A 4-story office building would also be constructed and integrated within the second story parking ramp.
The City of Mankato would be seeking up to $1,502,050 in redevelopment grant funds to assist with the redevelopment of the property. Eligible costs would be for building demolition, site demolition, geotechnical soil corrections, soil stabilization, and public infrastructure (water, storm, sanitary, lighting, sidewalks). The 50 percent match would be paid by the developer.
To be eligible for the grant, the City Council must approve a resolution authorizing submission of the grant application. If a grant is awarded, the final grant agreement will be submitted to the City Council for approval prior to execution and the City will enter into a subrecipient agreement with the developer. It is anticipated that grant awards will be announced in March or April 2026. Consenting to the submission of the application does not bind the City to approve the final grant agreement. Any other city applications, such as obtaining building permits, are required to be completed prior to redevelopment activity occurring along with obtaining zoning approvals.
The next grant round has applications due February 1, 2026. DEED anticipates awarding at least half of the grant funds to sites located outside the seven-county Twin Cities metropolitan area.
Front Street Plaza, LLC plans to redevelop the property located at 602-634 S. Front Street and 112 W. Liberty Street. The site was developed by 1884. Historical uses on the site include dwellings, shoe making, livery, saloon, repair shop, wood working, machinery, lumberyard, and carriage repository, and other accessory structures.
The proposed redevelopment would include demolishing the existing buildings and constructing a 2-story parking ramp along Riverfront Drive, 6-story mixed-use building along Front Street which would include a 23,000 SF grocer, coffee shop, restaurant, and 150 apartment units. A 4-story office building would also be constructed and integrated within the second story parking ramp.
The City of Mankato would be seeking up to $1,502,050 in redevelopment grant funds to assist with the redevelopment of the property. Eligible costs would be for building demolition, site demolition, geotechnical soil corrections, soil stabilization, and public infrastructure (water, storm, sanitary, lighting, sidewalks). The 50 percent match would be paid by the developer.
To be eligible for the grant, the City Council must approve a resolution authorizing submission of the grant application. If a grant is awarded, the final grant agreement will be submitted to the City Council for approval prior to execution and the City will enter into a subrecipient agreement with the developer. It is anticipated that grant awards will be announced in March or April 2026. Consenting to the submission of the application does not bind the City to approve the final grant agreement. Any other city applications, such as obtaining building permits, are required to be completed prior to redevelopment activity occurring along with obtaining zoning approvals.