MANKATO — The city of Mankato has been awarded a $2.2 million state grant that will fund improvements tied to construction of a parking ramp and other parking improvements for the Tailwind Redevelopment Project and other downtown businesses.
The project, being done by Mankato-based Tailwind Group, will transform a block of downtown between Riverfront Drive and Front Street.
Miller Motors and Red Sky Lounge will be razed and a new four-story building erected with a restaurant on the first and fourth floors of the building and housing on the other floors.
The corner of Warren Street and Riverfront Drive is slated to be a seven-story office building with 60,000 square feet of office space.
A public surface parking ramp will be built at 529 and 531 South Front St.
The project will add 168 public parking stalls to the city center and is expected to result in at least 41 new private sector jobs and an annual property-tax increase of $175,733.
Total project costs for building construction and infrastructure improvements are $18.5 million, including more than $13.4 million in private investment.
The Department of Employment and Economic Development awarded the city the grant.