Transportation Economic Development Program

The Transportation Economic Development Program (TED) is a competitive grant program available to communities for highway improvement and public infrastructure projects that create jobs and support economic development.

A collaboration between DEED and the Minnesota Department of Transportation (MnDOT), the program provides up to 70 percent of the costs for trunk highway interchanges and other improvements (which is defined as the accepted bid of the construction cost of the project) or the state's share as determined by MnDOT's cost participation policy, whichever is less.


Eligible applicants must be governmental entities as defined by state law. Although private entities are not currently eligible for TED financing, they may enter into agreements with eligible borrowers to request funding for eligible public transportation projects.

For a project to be eligible, it must support one or more of the following industries: manufacturing, technology, warehousing and distribution, research and development, agricultural processing, bioscience, or tourism/recreation. Projects that support industrial park development or mixed-use or high-density multimodal development are also eligible for the program.

Award Amounts
The maximum amount of funding that any project may receive is $10 million.

The matching funds offered by the local applicant may come from other federal, state, local and private funding sources. Private funding sources are the most beneficial to a proposal.

Evaluating Proposals
Projects will be selected on the basis of evaluation criteria in four broad categories: 1) transportation impact; 2) statewide economic impact; 3) project financial plan; and 4) project readiness.

The program makes every effort to award funds equally to Greater Minnesota and the seven-county Twin Cities metropolitan area. Due to project sizes, however, the split may not be exactly 50-50.

Application Process

2015 Application Form

Download the TED Solicitation Notice and Application

2015 Application Process Timeline

July 27, 2015   Solicitation announcement distributed
July 28 – Sept. 25, 2015   Applications prepared (MnDOT and DEED offer guidance)
August 11 – 20, 2015   TED program informational sessions (see schedule below)
September 25, 2015   Applications due to MnDOT
December 2015   Projects selected and approved
January – December 2016   Project status monitored by MnDOT and DEED to develop final cost-share agreements, ensure progress and program compliance

2015 TED Informational Sessions





August 11

Detroit Lakes

MnDOT District 4 Office
1000 Highway 10 West
Detroit Lakes, MN 56501

10:00 AM – Noon

August 12



MnDOT District 7 Office
2151 Bassett Drive
Mankato, MN 56001

10:00 AM – Noon

August 13


MnDOT District 3 Office
7694 Industrial Park Rd.
Baxter, MN 56425

10:00 AM – Noon

August 13


MnDOT District 2 Office
3920 Highway 2 West
Bemidji, MN 56601

2:00 PM – 4:00 PM

August 14


MnDOT District 1 Office
1123 Mesaba Ave.
Duluth, MN 55811

10:00 AM – Noon

August 17


MnDOT District 6 Office
2900 48th Street NW
Rochester, MN 55901

10:00 AM – Noon

August 19


MnDOT Waters Edge Building
1500 W. County Road B-2
Roseville, MN 55113

1:00 PM – 3:00 PM

August  20


Kandiyohi County Health and Human Services Building,
220 23rd Street NE
Willmar, MN 56201

10:00 AM – Noon


  • 2015 Awards

    Metro Area Project Awards


    East Bush Lake Road I-494 Westbound Entrance Ramp. TED award:  $8 million in trunk highway funds.

    This project will provide an inverted loop ramp onto westbound I-494 from East Bush Lake Road. The project will alleviate traffic on the I-494/TH 100 interchange and will serve the Metro Transit and provide freeway access from American Blvd. There are now 21,000 jobs within a one-mile radius of the project and the project sits in the middle of multiple development districts in the cities of Bloomington and Edina zoned for industrial, office, residential and commercial land uses. Multiple large scale projects are in various stages of redevelopment including 255,000 sq. ft of office space. The location also contains 80 acres of undeveloped land.  Employment growth in the area in two years is expected to exceed 2600 medium to high paying jobs. The total estimated cost of this project is $23.78 million

    Carver County

    Trunk Highway 41 Expansion. TED award: $3.5 million in trunk highway funds.

    This project will provide a one mile expansion of Minnesota State TH 41 in the City of Chaska between TH 212 and CSAH 14.This improvement is needed as traffic volumes have increased and will continue to grow as land uses intensify and existing businesses add new employment. Chaska has increased from 8,350 people to 23,700 people since TH 41 was constructed in 1977, and the city continues to see strong growth in population and jobs. TH 41 improvements will include expansion of the roadway from 2 lanes to 4 lanes, construction of a center island, dual turn lanes at CSAH 14, lengthening a northbound turn lane at Hundermark Rd. and construction of a bike-ped underpass at CSAH 14. Six businesses are expected to expand which will add 300 new jobs.  A large portion of these are high paying jobs in bioscience, technology, and manufacturing.  A private sector contribution to the project is valued at $1.25 million. The total estimated cost of this project is $16.7 million.

    Dakota County

    TH 52/CSAH 42 Interchange Reconstruction. TED award: $3.1 million in trunk highway funds.

    This project will reconstruct the TH 52 and CSAH 42 interchange and widen CSAH 42 to four lanes through the interchange. The project will introduce protected left turn lanes on CSAH 42 at all intersections with ramps and designated local roads, as well as at intersections with major driveways. In addition, this project will extend the 4- lane section of CSAH 42 past the interchange to remove the lane drops and transitions at the interchange. The replacement of the bridge will also remove existing sight line obstructions, such as the piers, and allow for better sight distance for traffic accessing CSAH 42 from TH 52. These improvements will reduce conflict points and allow for safer turning movements at the interchange. The project will improve travel time and safety for the existing trucking firms and a proposed distribution facility in area. It is anticipated that the new distribution facility will provide153 full time and 281 part time jobs within 2 years and 172 full time and 322 part time jobs in 5 years. The total estimated cost of this project is $22.3 million.

    Scott County

    US Highway 169-TH 41-CSAH 78 Interchange– TED award: $10 million in trunk highway funds.

    This project will construct an interchange at the intersection of US Highway (US) 169 and MN TH 41/CSAH 78. Project components include bridge and ramp construction, retaining wall, signal systems, frontage roads, and access modifications. The US 169/TH 41/CSAH 78 intersection experiences the most crashes of all intersections in Scott County and is in the top 200 in Minnesota for crash-cost in 2011-2013. This project will continue efforts to remove signalized intersections from the US 169 Corridor to improve safety and mobility. The frontage road system will eliminate exposure of slow moving industrial/mining vehicles on the US 169 mainline. Increased efficiency in commercial truck traffic flow will enhance freight mobility along the US 169 Corridor. This interchange will also benefit the regional construction economy by improving mobility for trucking to and from the adjacent mining, construction materials and landfill sites. An additional 353 jobs are expected within two years of the project. Within five years, 528 additional jobs are expected. A private sector contribution to the project is valued at $1.15 million. The total estimated cost of this project is more than $38 million.

    Washington County

    TH 36 and CSAH 35/Hadley Avenue Interchange Project– TED award:  $4 million in trunk highway funds.

    This project provides for the construction of a new interchange to replace the existing at-grade intersection of TH 36 and CSAH 35 (Hadley Avenue) in Oakdale. Within the project area, TH 36 is a four-lane divided expressway section. Traffic volumes have increased at the existing intersection to the point that the traffic demand is exceeding the capacity which in turn results in extended periods of heavy congestion and an unacceptable level of service during peak hours. Major economic development benefits from this project come from making the TH 36 corridor more efficient for commercial traffic with more than 40,000 vehicles currently travel through this corridor daily. Large undeveloped areas near the interchange are zoned commercial and industrial. The project may create as many as 275 jobs in five years. A private sector contribution to the project is valued at $2.57 million. The total estimated cost of this project is $18.85 million.

    Greater Minnesota Project Awards

    City of Redwood Falls

    CSAH 101/TH 19-71 Union Drive Intersection (MSAS 112) Traffic Signal. TED award: $280,000 in trunk highway funds.

    This project will signalize the intersection of CSAH 101/TH 19/71-Union Drive (MSAS 112) and will develop a Two-Way-Left Turn Lane on TH 19 significantly enhancing safety on the roadway.  The signal with the left turn lanes is necessary due to movements of large truck/super loads in and out of the Industrial Park. Shult Homes, a manufactured housing business which uses the intersection to move modular homes, currently has 212 employees and is planning on a 10 percent increase in two years and projects an additional 47 employees by 2020. Other jobs located in the industrial park served by the intersection include manufacturing, rendering, and electronics.  Jobs are projected to increase in two years to about 700 and in five years to 770 as a result of plant expansions. The total estimated cost of this project is $480,000.

    City of Wells

    Wells Business Park Access. TED award: $147,800 in trunk highway funds; $407,000 in general obligation bonds.

    This project will provide two turn lanes off of TH 22 and will develop an internal road and infrastructure for a new business park. The project consists of two 300-foot right turn lanes on TH 22 and constructing the internal road system for the business park consisting of a 40' wide paved urban 10 ton roadway. The City of Wells has filled existing business park areas available for development and local business desiring to expand are unable to do so at their current location. Based on an assumption of 10 employees per acre, the City estimates a total of 190 jobs upon full build out of the area. The project will add 30 total new jobs in two years and 140 in five years with five of the eight parcels developed. The total estimated cost of this project is about $4.2 million.

    City of Mankato

    Adams Street Extension. TED award: $813,233 in general obligation bonds.

    This project will extend Adams Street from Roosevelt Circle to CSAH 12 and will provide access to 170 acres of industrial land adjacent to US Hwy 14 and secondary access to a main commercial/retail center. The project consists for 3400' of new roadway and a new roundabout at an existing intersection. The new roundabout and the secondary access to the TH 22 would greatly improve capacity and safety in the area and the Adams street connection will connect with the new CSAH 12 and the new CSAH 22 and US Hwy 14 interchange. Recent industrial park development in the area has been absorbed quickly and it is expected that these new parcels would be developed soon creating as many as 367 new jobs in five years. The total estimated cost of this project is $5.73 million.

    City of Marshall

    TH 68-Michigan Road Turning/Bypass Lanes. TED award: $666,000 in trunk highway funds.

    This project includes the installation of turning lanes, a bypass lane, and a truck acceleration lane among other improvements on TH 68. The project in intended to provide access to and from the newly developed industrial park near TH 68 and will improve safety at the intersection with Michigan Road in anticipation of the traffic growth due to occupants of the industrial park. The project will include installation of left-hand turn lanes on TH 68 into the industrial park.  This project is necessary because the existing industrial park Marshall is nearly full and prospective occupants have expressed interest in the new industrial park. These businesses are expected to create 20 jobs in two years and 40 jobs in five years. Total project cost is $3.49 million.

    Mille Lacs County, City of Princeton

    TH 95 Roundabout and Business Park Access. TED award: $110,187 in trunk highway funds; $689,500 in general obligation bonds.

    This project includes the installation of a roundabout on TH 95 and County Road 157 (21st Avenue) in Princeton. This roundabout will reduce the number of high-speed crashes and increase highway capacity on TH 95.   The 21st Avenue corridor serves as direct access to the Aero Business Park and the Princeton Public Safety Building. The request also includes funds for infrastructure and park expansion and the completion of a 1.9 mile paved multi-modal trail loop around an existing commercial and retail area. Nine businesses have been identified for location and expansion in the Princeton Business Center and the Aero Business Park with employment growing from 650 jobs two years after completion to 900 jobs after five years. Total project cost is $5.07 million.

    St. John’s Township

    First Avenue West Upgrade. TED award: $409,579 in general obligation bonds.

    This project will upgrade 2 miles of First Avenue West which is currently a minimum maintenance road and will provide access to Meadow Star Dairy, a large dairy operation with more than 8,000 cows. Currently the road is rated for a 5 ton capacity and is 20' wide road. Improvements to the road will include an upgrade to a 10 ton capacity “all weather" road that will be 28' wide. Other enhancements include improved site lines that are safety issue for converging traffic. The dairy will produce seven semi-truck loads of milk a day and will be serviced by a high volume of large trucks and employee vehicles operating 24 hours a day. Meadow Start will create 52 jobs in the first two years. A private sector contribution to the project is valued at $399,963. Total project cost is $839,963.

  • 2013 Awards

    Funding was awarded for projects in Waconia, Minneapolis, Olmsted County, and Le Sueur.

    Communities must document job growth or retention and the ability to complete the projects, including showing they have additional sources of funding and can meet environmental requirements and other planning standards.

    The following projects received funding:

    City of Waconia - $4.5 million
    This project will upgrade 1.4 miles of two-lane road to an urban four-lane divided road with multiple intersections along Hwy 5 through the heart of Waconia. The project supports job creation for many employers in the area; Ridgeview Medical, for example, is planning an expansion in 2015 that will add 130 new jobs and an additional expansion is planned in 8-10 years that will add another 130 jobs. The improvement project will also address safety concerns by widening and reducing the number of accesses to and from Hwy 5—thus improving emergency vehicle response times to the hospital.

    City of Minneapolis - $6.8 million
    This project will construct a new westbound I-94 off ramp that will re-orient traffic entering downtown Minneapolis from 5th street to 7th St. The existing I-94 5th street off ramp will be repurposed to provide a multi-modal connection between the Cedar Riverside neighborhood and the downtown core. The project serves the densest concentration of jobs in the state—the downtown core of Minneapolis employs 133,000 people and is projected to increase significantly with additional downtown development (including the new stadium). Other major employers that will benefit from this project include: Hennepin County Medical Center, the University of Minnesota, Fairview Hospital, and Augsburg College.

    Olmsted County - $2.2 million
    This project will reconstruct an interchange at Hwy 63 and County Hwy 16, improving access to the Rochester International Airport and surrounding industrial parks. The Rochester International Airport generates $161.5 million in economic impact in the region and employs more than 270 people and serves more than 320,000 commercial airline passengers per year. The improvement will support a new terminal currently being planned for the airport. The Mayo Clinic expansion will also have a direct impact on this interchange since the expansion is projected to add 20,000 employees and double the number of patients at the clinic.

    City of Le Sueur - $2.1 million
    This project involves construction of a Reduced Conflict Intersection at Hwy 169 and County Hwy 28. Construction will also involve associated access closures and supporting streets to address the expansion needs of Cambria, a key employer in the area, as well as providing better and safer access to a planned business park. Hwy 169 is a principal arterial roadway that provides critical connections between southwestern Minnesota and the Twin Cities. This TED proposal is unique, in that it also includes the conveyance of land containing an existing rest area to Cambria to make room for the planned economic expansion, which was authorized by the 2013 Legislature. In addition to the transportation improvements, the project would involve construction of a new rest area to replace the existing rest area.

  • 2012 Awards

    Fourteen highway improvement and infrastructure projects in Minnesota received approval for $25.5 million in funding.

    Funding was awarded for projects in Windom, Mille Lacs County, International Falls, Rice County, Mankato, Delano, Ramsey County, Eden Prairie, Maplewood, St. Louis Park, Rochester, Benton County, Jackson and Minnetonka. View the scoring summary of proposed projects.

    Communities must document job growth or retention and the ability to complete the projects, including showing they have additional sources of funding and can meet environmental requirements and other planning standards.

    The following projects received funding:

    City of Windom - $1.1 million
    The funding will be used for improvements on Highway 71 and an access road for the first phase of the North Windom Industrial Park. The project will allow Toro and General Sheet Metal Works, a Toro supplier, to retain more than 700 jobs and add another 70 jobs over the next five years. Total project cost: $1.9 million.

    Mille Lacs County - $300,000
    The county plans to improve 2 miles of roadway that will allow trucks to carry heavier loads from Hawkins Sawmill, a regional mill that processes hardwood for the cabinet and home-building industries. Total project cost: $625,000.

    City of International Falls - $656,667
    Plans call for installation of utilities and a rail spur to the multi-modal district, which is located adjacent to the busiest rail port of entry in North America. The district is ideal for warehousing, distribution, assembly, processing and light manufacturing. Mariner Farms LLC signed a development agreement with the International Falls EDA and will be the first tenant. It is projected the district will create 50 jobs within five years. Total project cost: $957,400.

    Rice County - $1 million
    The county will reconstruct 2.1 miles of County Road 76/Acorn Trail to improve access to developable properties north of the Faribault city limits along Interstate 35. The project will also improve access to the Northern Industrial Park in Faribault. Officials estimate that 150 jobs will be created in the first two years and 300 jobs within five years after the project is completed. Total project cost: $2.9 million.

    City of Mankato$969,200
    The funding will pay for road and utility improvements in Eastwood Energy Industrial Park. After the improvements, about 160 jobs are expected to be created within two years and about 470 jobs within five years. Total project cost: $1.4 million.

    City of Delano - $1.6 million
    Highway infrastructure improvements are planned in support of a new industrial park. Randy's Environmental Services will add 30 jobs immediately. Other businesses will create an additional 100 to 150 jobs within two years and 400 to 500 jobs within five years. Total project cost: $6.1 million.

    Ramsey County - $1 million
    Plans call for additional turning lanes and other upgrades to address traffic congestion along Lexington Avenue adjacent to Interstate 694. The improvements will benefit Boston Scientific, Land O Lakes, Smith's Medical, IntriCon Corp. and other high-tech companies in the area. Total project cost: $2.6 million.

    City of Eden Prairie$7 million
    Shady Oak Road (County Road 61) will be widened and reconstructed to improve access to the Golden Triangle Area and City West business parks. The two business parks support more than 20,000 employees and 600 businesses. Total project cost: $31.7 million.

    City of Maplewood - $1 million
    Highway 36 and English Street will offer increased safety and mobility with the addition of an interchange in an area that is underdeveloped and has the potential for employment and tax base growth, especially after the St. Croix River bridge is built. Total project cost: $23 million.

    City of St. Louis Park - $3 million
    A diamond interchange and roundabouts are planned at Highway 7 and Louisiana Avenue. The project will be built in the area of Methodist Hospital, which recently added 1,900 jobs after a building expansion. Total project cost: $25 million.

    City of Minnetonka - $1.6 million
    The city is planning a westbound on-ramp for the Interstate 394/Ridgedale Drive interchange. The area has 20,000 jobs, with another 700 jobs expected to be created within two years and 900 jobs in five years. Total project cost: $8 million.

    City of Rochester - $1.5 million
    Improvements are planned at Highway 14 and 40 th Avenue SE to enable Reichel Foods, a food processing and distribution business, to expand operations in the area. The business employs 375 people and plans to add 50 jobs within two years. Total project cost: $2.3 million.

    Benton County - $2.9 million
    The project calls for interchange improvements at Highways 10 and 3, adjacent to two industrial parks where more than 1,000 people work and two vacant manufacturing buildings are available for other businesses. Total project cost: $4.9 million.

    City of Jackson - $1.8 million
    A diamond interchange is proposed at Interstate 90 and Highway 34 in an area that is expected to experience significant industrial and retail development. This project is tentatively approved, but a re-scoping of the project involving the city, MnDOT, and Federal Highway Administration may result in a lower project award. An additional 400 to 600 people are expected to be employed in the area by 2020.

  • 2011 Awards

    Eleven highway improvement and infrastructure projects in Minnesota received preliminary approval for nearly $33 million in funding.

    Preliminary funding was designated for projects in Aitkin County, Bloomington, Hennepin County, Marshall, Perham, St. Charles, St. Cloud, Stewartville, Two Harbors, Worthington and Zumbrota.

    The funding is contingent on communities providing evidence that they can complete the projects, including documenting that they have other sources of funding and can meet environmental requirements and other planning standards.

    The following projects received preliminary funding approval:

    Aitkin County - $138,750
    The funding will upgrade one mile of Highway 5 so that it can handle vehicles with a load capacity of 10 tons per axle. The improvement will enable American Peat Technology to increase production. Total project cost: $555,000.

    City of Bloomington - $4.2 million
    The city plans to improve the interchange at Interstate 494 and 34 th Avenue, which will increase traffic capacity and help reduce accidents. The project also will improve access for local corporate offices, the Minneapolis-St. Paul International Airport and the Mall of America. Total project cost: $6 million.

    Hennepin County - $9.4 million
    Officials are planning a new entrance ramp to northbound Interstate 35W at Fourth Street South, as well as an auxiliary lane on northbound 35W from University Avenue SE to Stinson Boulevard. The project will reduce congestion in an area with a high concentration of jobs. It will also create a more direct route from downtown Minneapolis to northbound 35W. Total project cost: $13.5 million.

    City of Marshall - $575,000
    The city plans to install turning lanes and a bypass lane on Highway 68 near the proposed Lake Road Industrial Park. Officials are negotiating with businesses that may locate in the park, creating about 100 jobs. Total project cost: $822,500.

    City of Perham - $4 million
    The funding will pay for construction of an interchange for an existing overpass at Highways 10 and 34. The project will provide better access to Barrel O Fun, Tuffy's Pet Foods, Kenny's Candies and a new hospital. The project will result in the creation of 240 jobs. Total project cost: $6.7 million.

    City of St. Charles - $570,000
    A new 20-acre industrial park, adjacent to Interstate 90, off Highway 74, is planned. Funding will pay for roads, turning lanes and utilities in the park. Active Tool and Die and Robotics Redefined/Excel Manufacturing have expressed interest in moving to the park and adding a total of 45 jobs. The project will help the community recover from the loss of its largest employer, North Star Foods, to a fire in 2009. Total project cost: $2.6 million.

    City of St. Cloud - $8 million
    An interchange is planned at Highway 15 and 33 rd Street. Adjacent land is a high growth area where several businesses have expressed an interest in locating. The interchange will increase safety in St. Cloud by reducing traffic that must travel a five-mile circuitous route through one of the city's busiest intersections. Total project cost: $12 million.

    City of Stewartville - $400,000
    A new road and utilities are planned within an existing business park, located at Highway 63 near Interstate 90 and south of the Rochester International Airport. The city is negotiating with Federal Express and a refrigeration and distribution company to place facilities in the park. Total project cost: $1.6 million.

    City of Two Harbors - $1 million
    The city plans to close six accesses to Highway 61 and add an intersection to the east side of Highway 61 at Highway 26. Highway 26 will be extended to provide safer access to North Shore Manufacturing and other area businesses. North Shore Manufacturing plans to add 50 jobs in the next five years. Total project cost: $1.7 million.

    City of Worthington - $3.3 million
    The project, just south of Interstate 90, will extend a four-lane divided section of Highway 59 by another 1,200 feet to the north. Turning lanes and other small projects are also planned to improve access to a new 750-acre industrial/commercial park and a bioscience park. Bedford Technologies is planning to expand in the industrial park. The park is expected to create 440 jobs in the next five years. Total project cost: $4.7 million.

    City of Zumbrota - $1.15 million
    The project will improve existing roads and upgrade and add utilities along Highway 68. The improvements will allow safer access to Highway 52 for VersaCold a cold-storage business and allow for future industrial development in the area. VersaCold is planning a 75,000-square-foot expansion that will add 25 jobs. Total project cost: $2.3 million.


For More Information 
Contact Jeremy LaCroix, 651-259-7457.