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DEED requests funding for Greater Minnesota business infrastructure and transportation economic development grants
Summary
The Department of Employment and Economic Development asked for $2.7 million for the Greater Minnesota Business Development Public Infrastructure program and $1.8 million for the Transportation Economic Development Infrastructure program to support local infrastructure that enables private business expansion.
Kevin McKinnon, deputy commissioner for economic development and research at the Department of Employment and Economic Development, told the House Capital Investment Committee on Feb. 18 that the governor's capital recommendations include two DEED grant programs that support local infrastructure for business development.
DEED requested $2,700,000 for the Greater Minnesota Business Development Public Infrastructure grant program (BDPI). McKinnon said BDPI helps cities outside the seven-county metropolitan region pay for public infrastructure necessary to support industrial development — for example, wastewater treatment and utility extensions — and typically provides up to 50 percent of eligible costs. He said cities may receive up to $2,000,000 over two years for eligible industrial uses and that the program now allows limited incidental commercial uses on served acreage.
The department also requested $1,800,000 for the Transportation Economic Development Infrastructure program (TEDDI), a joint DEED–MnDOT competitive program to fund transportation improvements that serve businesses and industrial parks. McKinnon cited a Dayton interchange project previously supported by TEDDI where the grant helped connect an industrial area to the interstate and improved safety.
McKinnon said BDPI has historically received a mix of GO bond and general-fund appropriations and that DEED maintains a pipeline of projects; he said the current BDPI balance was about $5,000,000 and that the department had completed 11 grants since July 1, 2023. For TEDDI he said the current balance is approximately $60,000 with roughly $4.5 million in projects in the pipeline.
Committee members asked about application timing, requirements for match and whether funds are first-come, first-served. McKinnon and DEED staff said TEDDI is awarded via an RFP process and that both programs require matching funds and operate on a reimbursement basis; projects require approved match prior to contract execution.
DEED did not request committee action during the Feb. 18 presentation but agreed to follow up on pipeline details as members requested.
