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DEED Awards Infrastructure Grants to Three Cities, Supporting 1,000 Jobs

June 2025

6/26/2025 9:13:34 AM

St. Paul, MN – The Minnesota Department of Employment and Economic Development (DEED) has awarded more than $5 million in grants to three infrastructure projects in Greater Minnesota. The funding, from DEED's Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI), is expected to create or retain 1,006 jobs in North Branch, Sartell and Willmar and leverage $221 million in private investment.

Under the BDPI grant program, which supports communities outside of the Twin Cities metropolitan area, DEED awards 50% of eligible capital costs for qualifying public infrastructure projects such as streets, wastewater collection and treatment, drinking water, storm sewers and more.

"Public infrastructure grants help Greater Minnesota grow and thrive," said DEED Commissioner Matt Varilek. "These grants help encourage economic development, add and retain jobs and support community vitality."

The following towns received funding:

North Branch - $1,050,860

DEED awarded the city of North Branch $1,050,860 to support street and utility construction in the city's 200-acre, multi-phased Interstate Business Park. The project will immediately provide infrastructure for two businesses: LEI Packaging, which currently has 15 full-time jobs in Chisago City and is building a new, larger $5 million facility in North Branch, with plans to add 25 to 50 more workers in the next five years; and Stepp Manufacturing, currently headquartered in a different North Branch location with 71 full-time employees, with plans to invest $9.5 million in a new facility and add 25 to 50 employees in the next five years. The Interstate Business Park project will also prepare an additional 30 acres for future development. Officials estimate the project will attract $30 million in private investments and create or retain 186 jobs in five years.

Sartell - $2 million

DEED awarded the city of Sartell $2 million to support street and utility construction for Niron Magnetics, which intends to break ground this year on a $38 million, 190,000-square-foot building and create 175 full-time manufacturing jobs. The company anticipates investing an additional $62 million in future expansion on the site, creating an additional 425 full-time jobs. The total cost of the public infrastructure project is $4,394,000.

Willmar - $2 million

DEED awarded the city of Willmar $2 million to assist with street and utilities construction to expand the city's industrial park and provide access to a new private rail park. The proposed public infrastructure will benefit current businesses and create 250 acres for future development. Officials estimate the project will attract $91 million in private investments and create or retain 220 jobs in five years. The total cost of the public infrastructure project is $4,492,660.

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