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The city of Albert Lea has been awarded about $130,000 to go toward the contamination cleanup of a portion of the Blazing Star Landing, where a 9,100-square-foot convenience store with multiple filling pumps and a car wash is expected to be built.

The Minnesota Department of Employment and Economic Development announced the grant as part of a total of $2.15 million in contamination and cleanup grants awarded to six communities statewide.

DEED’s Contamination Cleanup Grants cover up to 75% of the costs of removing contamination at approved polluted sites. The remaining costs are covered by cities and counties, other units of local government and private landowners and developers.

“Assessing and cleaning up blighted land for redevelopment are catalysts for further growth and prosperity in our communities,” said DEED Commissioner Matt Varilek in a news release. “This grant program is just one way DEED supports and uplifts Minnesota communities.”

Albert Lea’s grant will go toward cleaning up a 3.66-acre site contaminated with petroleum and other contaminants.

The site previously was the location of a meat-packing facility for almost 100 years. The Farmland Foods plant burned down in 2001, and the Blazing Star area has remained mostly vacant for decades due to soil contamination and related remediation costs.

The release stated the project is anticipated to create or retain 19 jobs, increase the local tax base by about $55,000 and leverage $8.7 million of private investment. The city will provide matching funds.

City Manager Ian Rigg said he hoped to have the final price and agreement with the company during the council’s first meeting in February, or at minimum go through the public hearing process of declaring no public use or need for the land at that time.

Once a few more details are finished or near completion on the sale, he will be able to relate the name of the company and terms.

“We appreciate the grant on a budgeted $800,000 cleanup of the approximate four acres,” Rigg said. “Site remediation is extremely expensive and we are working with our legislators on the various concerns there are about the costs.”

He said would like to see the cost share or the determination between the state and local government portions be evaluated and changed.

“Given the costs we are seeing and knowing we are not alone, it is presumable that current funding levels need to be increased,” he said.

Despite the needed changes, he said the city is always grateful for the work and assistance from DEED in providing funding when possible.

The city has received two grants previously for housing on the south side of property and with the new grant will have received nearly $2 million to date.