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Goodhue County board directs staff to apply for DEED Community Energy Transition grant to restart permit-reimbursement program
Summary
The county approved a staff recommendation to apply for up to $499,750 from Minnesota’s Community Energy Transition grant program to restart and expand a building-permit reimbursement incentive intended to grow the local tax base and support housing and commercial construction.
Goodhue County commissioners voted to direct staff to apply for a Community Energy Transition (CET) grant from the Minnesota Department of Employment and Economic Development (DEED) to revive and expand a prior permit-reimbursement program.
The board approved the motion by voice vote after staff described the grant program, the county’s earlier permit-reimbursement effort and what the new grant application would cover. Staff recommended pursuing the remaining available CET balance of $499,750 to restart the county’s program that reimbursed building permit fees and, if awarded, expand reimbursement to include all housing construction, commercial and industrial permits, and sewer and water access charges.
The CET program is targeted at communities that need assistance addressing economic disruption tied to the eventual closure of certain electric generating plants. Staff said eligible projects include planning and implementation activities to increase a community’s property tax base, develop alternative economic strategies and assist displaced workers, and that Xcel Energy’s Prairie Island nuclear plant falls within the grant’s eligibility window.
County staff told commissioners that Goodhue County’s prior permit-reimbursement program ran just over four years and helped produce 333 single-family dwelling units and 256 multiunit housing units; average reimbursements were just over $2,000 per single-family unit and just over $600 per multiunit dwelling. Staff said the county spent about $850,000 total on the previous program and proposed to use CET funds to restart and broaden the incentive, which staff expect would help expand the county’s tax base, support business expansion and potentially create jobs.
Commissioners asked whether the earlier program demonstrably caused the construction increase; staff said they could not provide conclusive causal evidence but noted building-permit volumes rose during the program (582 permits over the program period versus typical long-term counts). Commissioners also discussed eligible uses beyond permits, including daycare conversions of older buildings, and whether grant funds could be used for outreach and promotion; staff said the CET eligible activities include planning, implementation and capital costs and suggested writing the proposal to preserve flexibility for promotional activities that support local cities and business recruitment.
After discussion, a commissioner moved and another seconded a motion to direct staff to prepare and submit the CET application; the motion passed by voice vote.
If awarded, staff will return with details on program design and implementation. The board did not adopt program rules at the March 4 meeting.
