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(Brainerd, Minnesota)—Today, April 18, 2005, Brainerd Housing and Redevelopment Authority (HRA) officials
flanked the sidelines as general contractor of Hengal Ready Mix and Construction pulled the lever to commence demolition of the
Mudford Plumbing Building and four of its connecting buildings located between South Fifth and South Sixth streets and
Maple and Norwood streets.
The razing of these vacant buildings makes way for the redevelopment of a new 13,000
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square-foot, two-story
office building in downtown Brainerd that will become home for new private-sector businesses and their employees. The
project is expected to create more than 25 professional-full-time jobs with benefits.
Brainerd HRA began preparation for the project with the creation of the three-block Tax Increment Financing
TIF district and then by identifying the site and selection of a contractor to begin redevelopment. This project reflects the
design standards in the City of Brainerd Downtown Master Plan created in 2001-2002.
"This is more than just tearing down old, dilapidated buildings," HRA Board of Commissioners Chair Margaret
Tiplady said. "But instead, it represents the community’s continued efforts to economically revitalize downtown Brainerd
and make it a destination increasingly attractive to its citizens, businesses and tourists."
The Brainerd HRA issued taxable 20-plus-year bonds to purchase the site and demolish the existing, empty
buildings. The HRA will use Tax Increment Financing (TIF) in downtown Brainerd to repay the bonds in this TIF
district. The additional taxes captured as a result of the development will
service the bonds. Developers Nelson-Kuepers will then purchase the site at market value and construct the new office
building and lease space to tenants.
"Using TIF allowed us to level the playing field to compete with other communities where land is ready
for development. We know there’s a public benefit to buying deteriorating buildings, demolishing them, and then
constructing new," HRA Executive Director Doug Grout said. "In its history, downtown Brainerd served as a destination
for visitors and businesses, and our plan is to reclaim this history by creating a destination where people work, live and
experience the best of Brainerd."
The project is scheduled for a late 2005 completion date with the groundbreaking just weeks away.
"We’re excited about the progress we’re making as the redevelopment is consistent with the City of Brainerd
Downtown Master Plan," City of Brainerd City Administrator Dan Vogt said.
The City of Brainerd approved the Brainerd HRA’s use of TIF for the new downtown office building.
"This new office building along with our future projects will help increase the economic vitality of downtown
Brainerd making it a safe, clean and attractive "hot spot" for visitors while maintaining the integrity of its history and
uniqueness from traditional-commercial areas," City of Brainerd Mayor James Wallin said.
For more information contact HRA Executive Director Doug Grout at (218) 824-3425.
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