The Minnesota Department of Employment and Economic Development (DEED) announced more than $2.7 million in grants to help drive economic development and community sustainability in four Minnesota communities with power plants that have ceased operations or are scheduled to cease operations.
Administered by DEED's Energy Transition Office, the Community Energy Transition grant program provides affected Minnesota communities with funds for research, planning and implementation activities to support their local economies through power plant transitions.
"DEED's Energy Transition Office supports Minnesota communities undergoing or preparing for power plant closures in their efforts to maintain vitality and diversify their economies," said DEED Commissioner Matt Varilek. “Communities can face significant uncertainty when a power plant closes. Through these grants, we’re partnering with local officials to help ease that transition.”
“At DEED we work hard to connect Minnesota’s stakeholders to resources that support business retention, attraction and expansion efforts,” said Energy Transition Office Director Carla Vita. “We are a connector that helps energy transition communities identify vital resources to support their next steps following legacy power plant closures.”
Community Energy Transition grant awards are as follows:
Benton County: $1 million
Benton County will use grant funds to support the development of its Beltline Corridor Project that will connect two major country thoroughfares, TH10 and TH23. This crucial arterial route in western Benton County will link metro growth centers to residential, commercial and industrial sites. Initial development steps taking place in early 2025 include relocating two Xcel Energy electric transmission poles along the route.
“We are beyond grateful to receive a Community Energy Transition Grant from DEED’s Energy Transition Office,” said Benton Country Commissioner Jared Gapinski. “This award supports a wonderful opportunity to promote new economic development opportunities in our county and accommodate existing urban and industrial growth in light of the Granite City Power Generation Plant’s decommissioning.”
City of Cohasset: $750,000
Cohasset will use grant funding to support its Blackwater Banks development project. Located on the old Cohasset Lumber Mill site, the 47-acre project will convert an abandoned brownfield site along the banks of the Mississippi River into a diverse, mixed-use new downtown area that will include a hotel/resort, multi-use sporting complex, apartments, townhouses, retail and restaurants.
The grant funding will help support significant site remediation and predevelopment prep work, including demolition and clean-up to remove former lumberyard remnants, plus grading and excavation for road construction and utility infrastructure installation.
"On behalf of the City of Cohasset, I would like to extend our heartfelt gratitude for the generous $750,000 grant from the Energy Transition Office to support the Blackwater Banks Project,” said Cohasset Mayor Josh Casper. “This vital initiative will become a cornerstone of our community, fostering a diverse economic development landscape. It promises to propel growth in recreation and tourism while paving the way for new housing and thriving small businesses. Together, we are building a prosperous future for all. The grant will significantly enhance our infrastructure and planning efforts, ensuring that the Blackwater Banks Project not only meets but exceeds the expectations of our residents and visitors. We are excited to embark on this journey and look forward to its positive impact on our community."
City of Oak Park Heights: $374,800
DEED awarded the city a $440,000 Energy Transition grant in 2024 for a feasibility study and pre-design work to construct a new water treatment facility that removes PFAS contaminants from the city’s two existing wells. This additional grant supports measures to advance the project plan. This includes evaluating data from phase one studies and determining the process, equipment, treatment plant building design and project cost estimates.
“The City of Oak Park Heights is grateful to DEED for the grant award from the Community Energy Transition grant program,” said Oak Park Heights Mayor Mary McComber. “We are honored to receive this grant funding that will allow the city to undertake PFAS water treatment design work as we continue to proactively ensure the safety and sustainability of our water resources. We are thankful for the continued support from DEED’s Energy Transition Office.”
Otter Tail County: $650,000
Grant funds will enable the Otter Tail County Economic Development Agency to purchase the dilapidated West Ridge Mall in Fergus Falls. The mall shares a fire suppression system with four businesses that would be subject to closing if the mall’s power were to be shut off. The funding enables the agency to acquire the mall property, clean it up and begin the work of separating fire suppression systems so the businesses can continue to operate while the city explores and pursues long-term plans to redevelop the site.
“Otter Tail County is grateful to be awarded the DEED Community Energy Transition Grant, which will support our collaborative efforts with the City of Fergus Falls, adjacent businesses and private sector partners to pursue the redevelopment of Westridge Mall,” said Otter Tail District 5 Commissioner Sean Sullivan. “This project represents a significant opportunity to revitalize the area, drive economic growth and create a sustainable future for our community.”
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