State dollars to support development of business park

Wells received a grant Tuesday afternoon that could change the economic footprint of the community.

The state awarded more than $550,000 in funds under the the state’s Transportation Economic Development Program for the construction of two accesses off Minnesota Highway 22 to a proposed business park on the north side of Wells.

The state awarded $147,800 in trunk highway funds and $407,000 in Department of Employment and Economic Development bonds.

Wells City Administrator Robin Leslie said funding from the state won’t be available until funding is secured for the rest of the $4.2 million project. She said the city is looking into other grant and loan funding, as well as local bonding. No city council votes have been held.

She said the city applied for the grant funding so it can meet state requirements for access points.

Leslie said construction could begin this year, and construction on buildings could begin in spring 2017.

“It’s going to create additional tax base and jobs in town that will have a domino effect on the housing market,” Leslie said of the proposed business park. “We’re very excited. These types of grants are very competitive.”

She said the planned park includes seven lots that include a mix of retail and manufacturing.

Leslie said Ron’s Plumbing HVAC & Electric has expressed interested in building at the park, as well as a couple of other businesses.

The project is expected to create 140 jobs in the next five years

“This opens up an area ripe for business development,” said Charlie Zelle, commissioner of the Department of Transportation, in a conference call.

According to Director of Communication Kevin Gutknecht with the Minnesota Department of Transportation, road work on Minnesota Highway 22 will improve safety in the area and on the corridor.

Gutknecht cited strong support from the community as a reason why the Wells request was accepted.

The Minnesota Department of Transportation and Department of Employment and Economic Development awarded $32 million in grants Tuesday for 11 state highway projects that the state said will support growing industry and businesses, leverage private funding and improve the transportation system for all users, according to a news release.

“For every public dollar we invest, Minnesota’s Transportation Economic Development Program leverages an additional $3 in economic development investment,” Lt. Gov. Tina Smith said in the release. “These are great projects, but they don’t come close to meeting our need for a sustainable, comprehensive solution to Minnesota’s transportation challenges. If we want to grow jobs and our economy, we need a statewide transportation system that works everywhere, for Minnesotans and Minnesota businesses.”

MnDOT and DEED received 22 project proposals for the program in 2015; 11 came from the Twin Cities metro area and 11 from Greater Minnesota, totaling more than $76 million in funding. According to the state, project selection was based on consistency with transportation plans, economic benefits, project financing and project readiness. The state estimated the projects will create more than 5,900 jobs in the next five years.

MnDOT and DEED have provided nearly $77 million in grants to 28 communities through the Transportation Economic Development program since 2011.

According to the state, program criteria emphasizes improvements that enhance the statewide transportation network, including all modes and jurisdictional systems and improvements that allow existing businesses to expand or new businesses to locate near the project area. The state said the program has leveraged more than $119 million from private and public partners that derive a direct benefit from the improvement.