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The Minnesota Department of Employment and Economic Development announced Monday it has awarded $2 million to redevelop nine sites in eight different cities, including a demolition grant throughout Minnesota.

One of the sites is in Ellendale, according to a press release.

The city of Ellendale was awarded $162,481 in redevelopment grant funds for acquisition, demolition and infrastructure improvements on the 2.99-acre site of Ellendale Suites.

First developed in the early 1900s as a farm, this site contains several dilapidated structures, according to the release.

It will be redeveloped into a two-story, 20-unit apartment building with the potential for a second apartment building to be constructed.

It is anticipated this project will create one job, increase the tax base by $37,086, and leverage $2.2 million of private investment.

Matching funds will be provided by tax increment financing.

Redevelopment projects made possible through the grants are expected to create 74 new jobs across the state and retain 48 jobs while providing more than 524 new housing units, 148 of which will be affordable housing units.

“The redevelopment grant program is highly sought-after because it sparks private investment and creates new opportunities for industrial, commercial, and housing development,” said DEED Commissioner Steve Grove. “These grants will also create new jobs and increase the tax base for these communities.”

The Redevelopment Grant Program helps communities with the cost of redeveloping blighted industrial, residential or commercial sites. Grants pay up to half the redevelopment costs for a qualifying site, with a minimum 50% local match required.

The program statute has specific criteria to rank projects including the redevelopment potential within the municipality, the overall need, readiness of the proposed project, the increase in tax base for the community, and the number of jobs created and retained.

Since its creation in 1998, the Redevelopment Grant Program has made 222 grant awards, which have helped fund projects that created or retained more than 29,000 jobs and generated nearly $51 million in tax revenue.