Bipartisan proposal would provide $5 million for infrastructure grant program

Bipartisanship raised its perhaps not-so-ugly head Thursday in the form of an economic development bill.

Sponsored by Rep. Pete Johnson (DFL-Duluth), HF335 would appropriate $5 million from the General Fund for the Greater Minnesota Public Infrastructure Grant Program, which helps communities outside the seven-county metro area pay for infrastructure to support warehouses, industrial parks, technology centers and other economic development projects.

Grants of up to $2 million can be used to cover 50% of the costs for qualified projects, such as streets, storm sewers and utility expansion. 

The bill was laid over Thursday by the House Workforce, Labor, and Economic Development Finance and Policy Committee. Rep. Roger Skraba (R-Ely) is the lone co-sponsor.

Since 2010, the Department of Employment and Economic Development has awarded more than $75 million through the program, producing 5,000 new jobs and retaining 10,000 others.

Recent grants totaling $4.37 million are expected to result in 869 jobs and $255 million in private investment.

This includes $1.05 million to the City of Stewartville for streets and utilities to extend the Schuman Business Park. The biotechnology firm United Therapeutics Corp. has announced plans to invest $100 million there for a research farm, exploring the use of genetically modified pig organs for human transplant.

Hermantown is using its recently received funds to develop a former Environmental Protection Agency Superfund site.

City Administrator John Mulder said the grants have been a game-changer because development of a Superfund site would not happen with private investment alone.