~ Projects expected to retain and create 420 jobs in Grand Rapids and Bovey ~
St. Paul, MN — The Minnesota Department of Employment and Economic Development (DEED) announced today it has awarded $1,234,548 in grants to infrastructure projects in Greater Minnesota.
The funding, awarded from DEED’s Greater Minnesota Business Development Public Infrastructure Grant Program (BDPI), was approved for Grand Rapids and Bovey. It is expected to retain and create 420 full-time jobs and prepare these cities for future growth.
“These grants will help encourage the kind of economic development that adds and keeps jobs in Grand Rapids and Bovey,” said DEED Commissioner Steve Grove. “DEED is committed to helping cities statewide during this economic recovery, and our investments in public infrastructure are more vital than ever to communities in Greater Minnesota.”
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 wastewater collection and treatment, drinking water, storm sewers, and more.
The following is a breakdown of the latest funding:
Grand Rapids – $250,000
The city of Grand Rapids was awarded $250,000 to assist with construction of utility and street extensions to serve a new 156-acre industrial area that will include redevelopment of the closed Ainsworth OSB plant. The development will include several new businesses, including Northstar Pellets, which will produce 125,000 metric tons of wood pellets for sale to the energy markets in Asia. The industrial area is expected to create 355 jobs. Private investment in the project is expected to be $134 million. Total cost of the public infrastructure project is $1.9 million.
Bovey – $984,548
The city of Bovey was awarded $984,548 to assist with construction of streets and utilities to serve a new 20-acre industrial park. Among the businesses planning to expand in the park are KMDA, Inc, a manufacturer of outdoor industry products, and 47-93 North, Inc. a manufacturing and machining company. Both companies have an existing presence in the area. 47-93 North, Inc will retain its current operations in Grand Rapids. Initial job growth from the two businesses will be 65 jobs. The park will also provide vacant lots for additional businesses in the future. Total cost of the public infrastructure project is $2.1 million.
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, the JoinUsMn.com website, or follow us on Twitter.