State grant gave $1.5 million in taxpayer money for purchase of mansion now facing foreclosure

Minnesota taxpayers have a financial interest in the outcome of foreclosure proceedings on the historic Gale Mansion in Minneapolis.

When the nonprofit Somali Community Resettlement Services bought the property for $2.6 million in 2022, more than half of the price was covered by a state grant, 5 INVESTIGATES has learned.

The Grant Contract Agreement from the Minnesota Department of Employment and Economic Development (DEED) awarded $1.5 million to Somali Community Resettlement Services specifically to “assist it in the purchase of 2115 Stevens (Avenue).”

Now the terms of that agreement are being scrutinized since the nonprofit defaulted on a mortgage including the mansion and another vacant property in New Hope.

In a statement to 5 INVESTIGATES late Friday, Executive Director of Somali Community Resettlemen...