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Transportation Economic Development Infrastructure (TEDI) Application

2021 Instructions and Application

Authorizing Legislation

Minn. Stat. 116J.436


The Transportation Economic Development Infrastructure (TEDI) program is created to foster interagency coordination between the Departments of Transportation and Employment and Economic Development to finance infrastructure to create economic development opportunities, jobs, and improve all types of transportation systems statewide.

Eligible Projects

Funds appropriated for the program must be used to fund predesign, design, acquisition of land, construction, reconstruction, and infrastructure improvements that will promote economic development, increase employment, and improve transportation systems to accommodate private investment and job creation.

Money in the program shall not be used on trunk highway improvements, but can be used for needed infrastructure improvements and nontrunk highway improvements in coordination with trunk highway improvement projects undertaken by the Department of Transportation.

Eligible Applicants

Eligible Applicants for the Transportation Economic Development Infrastructure (TEDI) Program are local units of government.

Types of Funding Available

DEED provides funds as a grant.

Application Deadline

August 27, 2021

Funds Available


The Department of Transportation has $20 million available for trunk highway costs. Those funds and funding are coordinated with the TEDI program. The MnDOT Transportation Economic Development program (TED) funds are awarded through a separate application.

Maximum Award

There are no funding limits for proposals requesting funds from the TEDI Program. Larger levels of funding may be requested if there is job creation, local tax base increase and other factors that warrant the increased funding amount.

Match Requirement

There is no match requirement, however major components of scoring in the competitive process are the level of private investment and the leverage of nonstate funds. Applications with little or no leverage will likely be uncompetitive.

A local governmental unit's resolution certifying that the match being pledged in the application is in place is required. A sample resolution is attached.

Selection Criteria

The TEDI Program applications will be evaluated on the following criteria:

  1. job creation (25 points)
  2. increase in local tax base (20 points)
  3. level of private investment (15 points)
  4. leverage of nonstate funds (15 points)
  5. improvement to the transportation system to serve the project area (25 points)
  6. appropriate geographical balance between the metropolitan area and greater Minnesota (lower scoring applications can bump high scoring applications if DEED deems it necessary for geographic balance)

Please note, an application must receive a minimum of 50 points in order to be eligible for funding.

The most competitive applications are those that can demonstrate within their request the following:

  • A strong, well-documented need and an effective solution. This would include documented financial costs, reasonable budgets, secured leverage resources;
  • How the proposal addresses the goal of the application;
  • Committed business(es), number of full-time jobs created or being created and their salaries
  • Project Readiness – will the project be started soon after DEED approval;
  • Evidence that the Eligible Applicant is able to perform and complete the tasks stated within the application.

DEED Disbursement Requirements

When requesting payments, grantees can only request up to the percentage of funds that matches the percentage of TEDI funding in the project. Supporting documentation (including invoices and canceled checks) for all incurred costs (including the required match) must be included with each pay request in order for DEED to process payment. DEED will only reimburse for completed work that has been paid for by the grantee.

Time Table for Completion of Awards

Projects should be completed within three (3) years of execution of the funding agreement, unless an extension is requested by the awarded community in writing and approved by DEED. If the project has not proceeded in a timely manner (i.e. within six (6) months of scheduled construction start date), DEED has the authority to cancel the award.

Application Requirements/Time Table

Please submit one original and one hard copy of the application to DEED, the approving authority. No emailed or faxed applications will be accepted.

The tentative schedule for selecting projects will be as follows:

  • May 10, 2021: Solicitation announcement distributed
  • May 10 - August 27, 2021: Applications prepared (DEED and MnDOT offer guidance)
  • May 25, 2021: TED/TEDI informational session
  • August 27, 2021: Applications due to DEED for TEDI and MnDOT for TED
  • November 2021: Projects selected and approved

Reporting Requirements

DEED will provide each grantee with the necessary annual reporting documents. Reports must be provided to DEED upon request.

Application Submittal

2021 Application

Eligible applicants must submit two hard copies of the application to be considered for funding to the address listed below.

Minnesota Department of Employment and Economic Development, 1st National Bank Building, 332 Minnesota Street, Suite E200, St. Paul, MN 55101 Attn: Jeremy LaCroix

**The expected DEED Headquarters move from the First National Bank Building has been delayed and we expect to still be in the First National Bank Building through at least August 27, 2021. Please confirm prior to mailing or delivering your application that the address provided is correct. Also, please confirm after 8/27/21 that your application was received. Thank you for your understanding in this time of transition.

Applications must be received by DEED by 4:00 pm on August 27, 2021. No faxes or emails will be accepted.


Jeremy LaCroix

Application Instructions

Eligible Applicants may apply for assistance from the TEDI Grant Program using the TEDI Application if they have an Eligible Project.

DEED, with the assistance of MnDOT, shall analyze all applications and base their funding decision on the information provided within each application. There may be instances when staff will require additional information prior to making a funding decision.

Please do not submit Program Concept and Application Instructions with your application.

Please answer all questions. Failure to do so will affect application scoring.

If the proposal submitted is not eligible for DEED's funding, DEED may recommend alternative funding resources.

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