Dakota County Community Development Agency Grants Eagan $175,000

The have announced the cities that were awarded the CDA's 2011 Redevelopment Incentive Grants.

For the third year in a row, Eagan will receive funds for the Cedar Grove Redevelopment area. This year's award of $175,000, according to Eagan Director of Community Development Jon Hohenstein, is intended for the demolition of the Competitive Engines, Larson Automotive and U-Haul buildings and construction of a parking lot on the former Shell service station site at 3830 Cedarvale Boulevard.

Eagan Mayor Mike Maguire said, "We are always glad whenever we can get funds into the redevelopment district that aren’t from Eagan taxpayers. The bonus is that it gives us an opportunity to address long-range goals in terms of the parking."

Hohenstein said, "One of the focuses of the Cedar Grove Redevelopment is to use shared parking for a number of users instead of having all users build parking for their peak need. A parking lot in this location can serve not only the overflow needs of Jensen’s and the bowling center, but also permit more substantial development to the east that can also share that space."

Maguire said the grant is especially helpful because the pedestrian-friendly design component makes the "area a little tight on parking and this will ensure parking will be there, and allows the city to get the parking in place before the development rises up around it."

Maguire added that he is pleased the parking will also benefit and ... "[Those are] two long-term businesses we want to succeed and who have been patient with our redevelopment."

Hohenstein provided an update on the current status of the U-Haul property saying, "The EDA (Economic Development Authority) will be going to the district court to finalize issues of the value of the property with AMERCO, the owner of the property ... We have contacted U-Haul of Minnesota, the operator of the business, again to discuss relocation options that they and the city have identified in the past."

The City of Eagan also received a $250,000 grant in 2009 and 2010, according to Sara Swenson, CDA assistant director of administration. This year's award brings the total that the city has been granted from the agency for the Cedar Grove Redevelopment project to $675,000.

According to Dan Rogness, CDA director of community revitalization, the Redevelopment Incentive Grants were initiated to respond to the decreasing dollars available to cities from state and local agencies. 

"It’s a struggle for cities to really find the resources necessary to help with redevelopment projects. As we saw those resources decrease we felt we could help fill that purpose," Rogness said.

Rogness indicated that these grant funds do not come from tax dollars, but rather from CDA funds including bonding dollars, multi-housing management fees and developer fees.

According to Swenson, the mission of the CDA is to "improve the lives of Dakota County residents through affordable housing and community development," and the Cedar Grove Redevelopment area fits with that mission by increasing the tax base, providing employment through new commercial development and new housing opportunities for area residents.