The St. Louis River corridor will see a $10 million, 67-unit, market-rate rental housing development thanks in part to a contamination cleanup grant.

The Minnesota Department of Employment and Economic Development announced last week it will award the Duluth Economic Development Authority $654,051 to advance the vision of Kuepers Inc. of Brainerd in constructing nine additional single-family housing units to accompany its two 29-unit buildings in western Duluth.

Kuepers is completing construction on its Grand Avenue Estates project at 9215 Zimmerly Ave., near Stewart Creek on the northern edge of the Morgan Park neighborhood. During the second phase of the project, Kuepers and its environmental consultants encountered diesel range organics stemming from an auto repair service that had occupied the site. The presence of lead was also found in soil there. The cost for remediation was estimated at just over $900,000.

The cleanup grant will ensure the completion of nine additional single-unit townhomes. Kuepers is committed to provide a 25 percent match under the grant program.

The project site is scheduled for cleanup over the spring and summer, with completion of the single-family units by early November. Units are priced at $975 for a single bedroom up to $1,475 for a three-bedroom. The single-unit townhomes would list for $1,795 up to $1,945 for two and three bedrooms, respectively.