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Five Greater Minnesota Cities Awarded Infrastructure Grants

Funding will support infrastructure improvements in Hutchinson, Kenyon, Paynesville, Perham and Sleepy Eye

7/11/2019 1:34:46 PM

Contact: Shane Delaney

ST. PAUL – Grants totaling $5.3 million were approved by the Minnesota Department of Employment and Economic Development (DEED) for infrastructure projects in four Greater Minnesota communities.

DEED awarded the funding from its Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI) for projects in Hutchinson, Kenyon, Paynesville, Perham and Sleepy Eye. The grants were all approved in the second quarter of 2019 and are expected to create or retain 365 full-time jobs.

“Investments in public infrastructure are critical to the economic success of Greater Minnesota communities,” said Governor Tim Walz. “These grants will help spur that economic development and create quality jobs in Hutchinson, Kenyon, Paynesville, Perham, and Sleepy Eye.”

“BDPI grants are an effective way for Greater Minnesota communities to better prepare themselves for economic development opportunity,” said DEED Commissioner Steve Grove. “The grants help construct roads, install public utilities and increase the local tax base.”

The BDPI grant program supports counties outside the Twin Cities metropolitan area. Under the program, DEED awards 50 percent of eligible capital costs for the qualifying public infrastructure projects. These projects include wastewater collection and treatment, drinking water, storm sewers and more.

The following is a breakdown of the latest funding:

Hutchinson, $353,563

Hutchinson was awarded $353,563 to assist in creating a new city street where a private road in poor condition exists. The new street will provide better access UPONOR who has committed $12.4 million to purchasing and remodeling a 237,000 square foot building. The new UPONOR facility will create 100 new jobs in five years.

Kenyon, $672,096

Kenyon was awarded $672,096 to assist with construction of streets, water, sewer and electric utilities for a new business park. The project is expected to create 60 jobs in five years.

Paynesville, $1,907,500

Paynesville was awarded $1,907,500 to assist in separating and treating wastewater from Associated Milk Producers Inc. (AMPI). AMPI is completing a significant expansion that will result in increased wastewater being sent to the city's wastewater treatment facility. The expansion will increase processing from 2.4 million pounds of milk per day to 3 million pounds. The project will retain 82 full-time employees and add an additional three employees.

Perham, $1,396,750

Perham was awarded $1,396,750 to assist with the construction of streets, water, and sewer to expand the Perham Industrial Park. The proposed development will allow the expansion of a Tuffy’s Pet Foods warehouse that will add 10 jobs in the first year. It will also allow room for Tuffy’s to build a new $60 million, 175,000 square foot canned pet food plant that will could create 75-100 jobs in the next five years. The project will also provide access to additional lots for additional businesses. The project is expected to create 110 jobs in five years.

Sleepy Eye, $985,587

Sleepy Eye was awarded $985,587 to assist with the construction of streets, water, sanitary sewer, storm sewer and a railroad crossing for a new industrial park. The city estimates 10 new jobs being created in five years. In addition to lots for new employers, the new rail crossing will also allow trucks to travel on the eastern side of town rather than cross in the center of town. The reroute will reduce truck traffic in residential and retail areas.

DEED is the state’s main economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development for more details about the agency and its services, visit the DEED website or follow DEED on Twitter .

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