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DEED Awards $5.21 Million to Six Communities Transitioning from Fossil Fuels

9/17/2024 8:51:29 AM

St. Paul — The Minnesota Department of Employment and Economic Development (DEED) today announced $5.21 million in grants to help drive economic development and community sustainability in six eligible Minnesota communities with power plants that are scheduled to close or have recently closed.

Administered by DEED's Energy Transition Office, the Community Energy Transition grant program provides the state's affected communities with funds for research, planning and implementation activities to support their local economies through energy transitions. 

"DEED's Energy Transition Office helps our communities maintain economic vitality as their legacy power plants close," said DEED Commissioner Matt Varilek. "Minnesota is the second state in the country with a strategic, coordinated program to support these communities and we are proud to be a leader in energy transition planning as we move toward our goal of 100% clean electricity by 2040."

"Collaboration and partnerships are essential in our efforts to support communities through energy transitions," said Energy Transition Office Director Carla Vita. "We work closely with community leaders, local utilities and other state agencies to ensure coordinated efforts. DEED's Business Development team also provides affected energy transition communities with vital support and resources to help with business retention, attraction and expansion, workforce strategies and economic diversification."

Community Energy Transition grant awards are as follows:

City of Becker: $770,000

The grant award will cover planning costs -- including environmental review and right-of-way acquisitions assessment -- to develop a grade separated interchange at U.S. Hwy. 10 and Trunk Hwy. 25. A redesigned interchange, located at the Becker business park's west entrance, will significantly improve vehicle and rail safety, and increase regional mobility and accessibility to help to attract new business to the area and address housing challenges.  

"The Becker city council thanks DEED for this grant to assist us in planning the grade-separated interchange. The grant funds will be used along with Becker's previously received, congressionally-directed funding to complete the planning and design for the intersection's improvements. The work at this intersection will not only enhance safety and mobility, but also improve access to the city's business park as Becker move forward on the Sherco power plant's planned retirement," said Becker Mayor Tracy Bertram.

Cook County: $1,000,000

Funds will be used for two key projects: development of a strategic plan for the transition of the former Taconite Harbor Energy Center located in Schroeder Township; and land acquisition, infrastructure development, building and construction of a country waste transfer station.  

The Taconite Harbor strategic plan is a key step for the county toward applying for federal funding for site redevelopment. It will also help promote more public engagement for the transition and support the county's redevelopment vision. ​The waste transfer station will facilitate a reliable, efficient waste management system that is fundamental to economic development infrastructure. Currently, the county's waste is hauled to Duluth. Cook County faces competing needs for its available tax funds to develop a transfer station due to its relatively small population and large percentage of public land.

"This Community Energy Transition Grant award creates a major opportunity for Cook County to redevelop the Taconite Harbor site in a way that will benefit the local economy for generations to come," said Cook County Administrator James Joerke. "It will also enable us to modernize our solid waste processing facilities to reduce water and air pollution, which will benefit not only county residents, but also all Minnesotans who come to Cook County to enjoy its beauty and wealth of natural resources."

City of Monticello: $1,000,000

The grant funding will help the city plan and begin construction of a utilities extension needed to increase developable land for an industrial park that will help replace jobs and the city's tax base.

"The City of Monticello is excited to have been awarded our second grant from the Community Energy Transition fund. This funding will further our efforts to achieve our energy transition goals and help us move from planning to action," said Monticello Community Development Director Angela Schumann. "The funding will be used to construct critical infrastructure to support job creation and tax base expansion. Our thanks to the Energy Transition Office staff for their work in launching the new grant structure and answering all of our questions along the way."

City of Oak Park Heights $440,000

Grant funds will be used for a feasibility study and pre-design work to construct a new water treatment facility to remove PFAS contaminants.  

"On behalf of the City of Oak Park Heights, I want to express our deep gratitude to DEED for awarding us the $440,000 Community Energy Transition Grant," said Oak Park Heights Mayor Mary McComber. "The funding will enable us to conduct a thorough PFAS treatment feasibility study and pre-design as we continue to proactively ensure the safety and sustainability of our water resources. We are grateful for DEED's partnership and continued support."

City of Red Wing: $1,000,000

Grant funds will support multi-year planning to create numerous transition planning documents, including an economic impact assessment, community engagement and support strategy, revenue diversification strategy, infrastructure enhancements, workforce development and retraining, and more.

"We are so proud to receive this DEED grant that will help us to develop economic diversification strategies so the city can continue to thrive after the power plant is retired," said Red Wing City Council President Kim Beise. "The award is a huge win for the community and region. We are excited for this opportunity to accelerate ideas and develop a comprehensive Economic Resiliency Transition Plan that ensures the City of Red Wing remains a great place to live, work and play."  

Sherburne County: $1,000,000

The grant will fund initial planning for transportation corridor improvements on a span of Hwy. 25 between I-94 in Monticello to Hwy. 10 in Big Lake. The connection improvements, which include a new river crossing, will help to create more jobs in the region and promote business growth. The grant funds will be used for an environmental assessment and alternatives analysis, as well as outreach to local officials and public engagement meetings.

"This is great news," said Sherburne County Board of Commissioners Chair Gregg Felber. "It's terrific to have the State of Minnesota invest with us in this important planning project for the future of Central Minnesota as we actively shape the transition of this region's economy and communities."

"I would especially like to thank our municipal, township, business and Wright County partners," said Sherburne County Commissioner Raeanne Danielowski. "The Mississippi River connects us all, but without deliberate planning and intentional development of infrastructure it can also divide us. This grant award helps our partnership advance its collective goals of a healthy, vibrant and connected community."

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