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State Awards $18M for Transportation Economic Development Projects in Five Communities

ST. PAUL, MN — The Minnesota Department of Transportation (MnDOT) announces awards for five state highway projects that will help support growing industry and businesses, leverage private funding and improve the transportation system for all users.

The five projects will receive a total of $18 million as part of the state’s Transportation Economic Development (TED) Program. The Department of Employment and Economic Development has also awarded $2.86 million for three additional projects in Mankato, Sherburne County and Minneapolis.

“The Transportation Economic Development program is an effective collaboration between state and local units of government to help deliver infrastructure improvements that enhance business growth opportunities around Minnesota,” said MnDOT Commissioner Margaret Anderson Kelliher. “These transportation partnerships help build networks and promote job creation in our communities.”

The TED program specifically targets transportation improvements that will lead to measurable economic benefits. For a project to be eligible, it must contribute to job creation or retention or another measurable economic benefit. Eligible applicants are any governmental entity as defined by state law. The TED program will provide funding for up to 70 percent of the total transportation infrastructure cost of the project or the state’s maximum allowable share.

This year’s TED funds help leverage federal, state, local and private funding for a total construction program of $124 million.

Twin Cities Metro Area
  • Washington County – The interchange at Highway 36 and Manning Avenue will improve access to planned development in the area, which includes a future Lakeview Hospital complex, a grocery store and other business development. The project is expected to help create 360 new jobs within five years.
  • City of Chaska – The Highway 41 reconstruction project in downtown Chaska will address current four-lane roadway issues by adding turn lanes and on-street parking for safer driving conditions.
  • City of Dayton – Construction of the Dayton Parkway Interchange on Interstate 94 in the northwest Twin Cities metro area is anticipated to start in 2020 and will help create 100 new jobs in the next five years.
  • Scott County – A grade separated interchange, additional frontage roads and accompanying access ramps along Highway 13 will be constructed within the vicinity of Dakota and Yosemite avenues in Savage. The interchange is adjacent to the Ports of Savage, a key intermodal hub for transporting grain, commodities and other commercial products from southwestern Minnesota to the rest of the world.

Greater Minnesota

  • City of Cloquet – A reduced conflict intersection is being constructed on Highway 33 and Gillette Road in Cloquet and will be completed May 2022.

A total of $20 million was available for projects in this round of the TED program. MnDOT anticipates soliciting additional projects in Greater Minnesota in 2020 for the remaining funds.

A previous TED project, which received funding in 2015, was opened to traffic in November 2019 at the intersection of Highway 36 and Hadley Avenue in Oakdale. Project improvements included a new bridge, interchange ramps, pedestrian improvements and the Gateway Trail underpass. The improvements resulted in reduced travel delays and improved safety for people driving, walking and bicycling in the area. There will also be a reduction in emergency response time for the Oakdale fire station, which is located near the new interchange. Local leadership by Washington County and support from federal, state, city and private partners resulted in a successful project.

Established in 2010, the Transportation Economic Development Program provides competitive grants to construction projects on state highways that provide measurable economic benefits. The Minnesota Department of Transportation, in partnership with the Minnesota Department of Employment and Economic Development, administers the program. DEED administers a parallel Transportation Economic Development Infrastructure program that funds projects on local roads and for other types of transportation. Projects may combine funding from both programs.
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