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Six Minnesota Cities Awarded More Than $5 Million in Innovative Business and Infrastructure Grants

10/31/2022 9:43:08 AM

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St. Paul – The Minnesota Department of Employment and Economic Development (DEED) has awarded $3,322,579 in grants to infrastructure projects in Greater Minnesota, and $2,035,101 to fund an infrastructure project for innovative business development in the city of Dayton.

"Investing in infrastructure is one of the best ways that cities can lay the groundwork for future economic success," said DEED Commissioner Steve Grove. "These grants will help communities expand their tax base and speed up their growth."

The funding awarded through DEED's Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI) was approved for Moorhead, Cokato, Braham, Isle, and St. Michael. It is expected to retain and create 339 full-time jobs and prepare these cities for future growth. The BDPI grant program supports communities outside the Twin Cities metropolitan area. Under the program, DEED awards 50% of eligible capital costs for the qualifying public infrastructure projects. These projects include streets, wastewater collection and treatment, drinking water, storm sewers, and more.

Dayton's public infrastructure funding was awarded through DEED's Innovative Business Development Public Infrastructure Grant Program (IBDPI). The IBDPI grant program supports communities by funding new public infrastructure necessary for innovative businesses to locate or expand in Minnesota. Projects must create and/or retain jobs in the area, increase the tax base and enhance economic development for the area.

The following is a breakdown of the funding:

Braham - $135,337

The city of Braham was awarded $135,337 to construct a street and utilities extension within their industrial park that will create four lots. The city estimates 40 jobs will be created and an increase of $2,000,000 in taxable value for the area in 5 years. The total cost of the infrastructure project is $270,674.

Cokato - $376,500

The city of Cokato was awarded $376,500 to construct streets and utilities in a new industrial park that will create five new lots. Minkkinen Iron is seeking to expand their current operation and construct a new 18,000 square foot, $2 million steel fabrication facility in the new industrial park. The city expects the industrial park will assist in retaining and creating 54 jobs and increasing the taxable value of the area by $2.4 million in 5 years. The total cost of the infrastructure project is $753,500.

Isle - $201,022

The city of Isle was awarded $201,022 to construct streets and utilities for a new 17-acre industrial park. Doppler Gear plans to expand their current operations with two new buildings. The city expects a total of 12 jobs retained and 38 new jobs in the park within 5 years. The city estimates an increased tax base of $1.4 million. The total cost of the public infrastructure project is $652,020.

Moorhead - $2,000,000

The city of Moorhead was awarded $2,000,000 to construct streets and utilities within the MCCARA Industrial Park. The city expects five businesses to locate on the proposed lots within 5 years. It is expected that the businesses will create more than 45 jobs and increase the taxable value of the area by $4.6 million. The total project cost is $4.3 million.

St. Michael - $609,720

The city of St. Michael was awarded $609,720 to construct a street and utilities for a new 39-acre business park. The business park will have at least four lots and the city expects that 4 businesses will invest $36 million and create 150 jobs within five years. They also expect the taxable value of the land will increase by $22 million. The infrastructure project will cost $1,219,440.

Dayton - $2,035,101 (IBDPI)

The city of Dayton was awarded $2,035,101 to support public infrastructure improvements for a new Graco, Inc. facility. The project is expected to retain and create 150 full-time jobs and expand Graco's Minnesota footprint. Graco has developed and continues to develop groundbreaking technologies in transverse flux electric motors, as well as in a variety of fluid handling and controls application. Graco has 1,700 patents worldwide, approximately 1,400 of which were issued from business units in Minnesota, and has additional facilities in Minneapolis, Anoka, and Rogers

Eligible applicants for the BDPI grant program include counties outside of the seven-county metropolitan area or statutory or home rule cities outside of the seven-county metropolitan area. Eligible projects include publicly owned infrastructure that supports economic development projects, including wastewater collection and treatment, drinking water, storm sewers, utility extensions, and streets. Economic development projects include manufacturing, technology, warehousing and distribution, research and development, agricultural processing, and industrial park development.

Eligible applicants for the IBDPI grant include counties, cities, towns, special districts, public higher education institutions, or other political subdivisions or public corporations in Minnesota. Funds from this program can be used for public infrastructure that includes wastewater collection and treatment systems, drinking water systems, storm sewers, utility extensions, telecommunications infrastructure, streets, roads, bridges, parking ramps, facilities that support basic science technology and clinical research, and research infrastructure. 

DEED is the state's principal 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 us on Twitter.

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