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Duluth creates new loan fund for brownfield redevelopment projects

[Duluth, MN] - The City of Duluth is providing another economic development tool to spur job creation and increase redevelopment with the "Brownfield Revolving Loan Fund" (BRLF), created from a U.S. Environmental Protection Agency (EPA) grant. The grant consists of $650,000 that will be used to make loans for the remediation of properties contaminated with hazardous substances. Grant funds are available for sites City-wide, with special emphasis on the St. Louis River Corridor. Depending on interest and usage, the City may be able to seek supplemental EPA support to extend the loan fund.

The BRLF will be managed by the City's Business and Economic Development Department (“BEDD”). The City’s goal with this new fund is geared towards job creation, increased tax base, creation of affordable housing or the expansion, connection and improvement of city trails, parks, and open spaces. 

“The new loan fund reflects the City’s continuing efforts to infuse a fresh approach to our economic development strategies and find new ways to be a strong partner in growing business and expanding our tax base. We appreciate the EPA’s support as we restore and breathe new life into existing brownfield properties,” said Mayor Emily Larson.   

“City Business Development staff will provide technical expertise to guide property owners through the process. We hope this loan fund is another catalyst to attract and retain great employers and talented workers in our city,” said Heather Rand, Director of the City’s Business and Economic Development.  

Applicants can be for profit, non-profit or units of government. Applicants will be eligible for loans of up to $200,000 for remediation work in connection with brownfield sites with economically viable reuse plans. Applicants must own the property proposed for redevelopment and will be required to provide no less than a 20% match of the loan funds. Allowable costs associated with removing, managing, or preventing the release or threat of release of hazardous substances, pollutants or contaminants, include: site monitoring, predesign, abatement of hazardous materials, removal activity or managing the threat or release of hazardous materials through excavation, treatment, and removal or on-site management (including, but not limited to, capping) of contaminated soils.

Interested parties should contact the City of Duluth’s Business and Economic Development office at (218) 730-5310 for information. This new loan fund is a change to the City ordinance and requires two readings followed by City Council approval. Once approved, the ordinance has 30 days until it takes effect, after which applications will be accepted.   

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