Hermantown lands $2 million grant for developing industrial park at former Superfund site

The city of Hermantown has been awarded a $2 million grant from the Minnesota Department of Employment and Economic Development to build streets and public utilities within a new 35-acre industrial park on a former Superfund site.

The Hawkline Business Park is expected to cost just less than $5 million, with the rest of the funding coming from private investments and a match from the city. It could bring in more than $80 million in private investments and create nearly 300 jobs, according to the city.

The grant was one of four doled out recently to support infrastructure in greater Minnesota cities including Stewartville, Chisago City and North Mankato. DEED awarded more than $4 million in funding from its Greater Minnesota Business Development Public Infrastructure Grant Program and its Innovative Business Development Public Infrastructure Program, which both are directed toward infrastructure projects. The grants are expected to support nearly 870 jobs and leverage $255 million in private investment, according to DEED.

Hawkline Business Park will be on the corner of Lavaque Bypass and Hwy. 53, site of the former Arrowhead Refinery. The U.S. Environmental Protection Agency listed the area as a Superfund site in the mid-1980s. It had extensive contamination from oil waste disposal. The site underwent remediation efforts and was delisted in 2021, according to the city.

“The complexity and resulting difficulty of redeveloping Superfund sites are unparalleled and can take decades — and the Arrowhead Refinery site is no exception,” Hermantown’s Economic Development Director Chad Ronchetti said in a news release. “From federal to state and local to private, this is a prime example of how patience and partnerships can revitalize even the most difficult sites.”