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DEED seeks funds for Greater Minnesota infrastructure grants and transportation-adjacent development program
Summary
The Department of Employment and Economic Development asked the committee 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-sector job creation.
ST. PAUL, Minn. — The Department of Employment and Economic Development told the Senate Capital Investment Committee on Jan. 28 it seeks replenishment of two grant programs that help communities pay for public infrastructure needed to support business expansion outside the seven-county metro area.
Why it matters: The programs aim to lower local development costs for industrial and transportation-oriented projects, supporting job creation across Greater Minnesota and reducing barriers for private investment.
Deputy Commissioner Kevin McKinnon described two programs in the governor’s capital request. The Greater Minnesota Business Development Public Infrastructure (BDPI) program helps cities and local units of government outside the metro area pay up to 50% of public-infrastructure costs for industrial development; DEED asked for $2.7 million for BDPI. McKinnon said BDPI has existed since 2002, typically makes awards around $500,000 and that the department currently has about $5 million in unobligated pipeline funds left from earlier appropriations.
The Transportation Economic Development Infrastructure (TEDI or TEDDY) program is a joint DEED–MnDOT effort that assists local governments with land acquisition and other costs associated with transportation improvements that enable economic development; DEED requested $1.8 million for that program. McKinnon said the TED program has supported projects such as a recent Dayton industrial realignment and noted the TEDDY program’s balance was near zero, so another grant round would require new funds.
Senators asked for project lists and accounting of previous allocations; McKinnon said DEED would share project spreadsheets and pipeline information. Committee members discussed the merits of maintaining a fund balance for BDPI so the agency can respond quickly when private development and interest rates create demand.
DEED staff said awards are made on either rolling application (BDPI) or annual RFP (TEDDY) schedules and emphasized that the funds are structured to leverage private investment and local matching dollars.
The committee did not vote on funding; members asked DEED for documentation of prior awards and pipeline commitments to inform bonding choices.
