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SF 5012

City of Two Harbors construction mitigation grants to businesses affected by construction on marked Trunk Highway 61 appropriation

2025-2026 Regular Session Introduced by Grant Hauschild

The bill creates a one-time grant program administered by DEED to financially assist small Two Harbors businesses (≤100 employees) in the 55616 ZIP code harmed by the Highway 61 co

Referred to Jobs and Economic Development
#appropriations #citiesandtowns-specific #employmentandeconomicdevelopmentdepartment #highways #roads #andbridges #transportationandtransportationdepartment
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Bill Summary · SF 5012

Summary of SF 5012 (2025-2026) — City of Two Harbors construction mitigation grants to businesses affected by construction on marked Trunk Highway 61 appropriation

Purpose and intent

  • The bill provides a one-time appropriation to establish a grant program to financially assist small businesses in the city of Two Harbors that are adversely affected by the Minnesota Department of Transportation’s redesign and construction project along marked Trunk Highway 61 (also known as 7th Avenue).
  • The aim is to mitigate negative business impacts from road construction, such as reduced access, parking, or visibility.

Key provisions

Appropriation and duration

  • A onetime general fund appropriation of an unspecified amount (denoted as $....... in the bill text) is authorized in fiscal year 2027.
  • The funds are available until June 30, 2029.
  • The administration of the program is handled by the Minnesota Department of Employment and Economic Development (DEED), with coordination from the Department of Transportation (MnDOT).

Program eligibility and criteria

  • Eligible applicants must be “qualified businesses” that:
    1. Employ no more than 100 full-time or part-time equivalent employees.
    2. Are located within the 55616 ZIP code.
    3. Demonstrate impairment of road access, parking, or visibility due to the Highway 61 project.
  • DEED may establish additional eligibility requirements beyond these criteria to efficiently and equitably distribute funds.

Use of funds

  • Grants may be used for:
    • Employee payroll expenses
    • Operating expenses
    • Facilities expenses
  • Grants cannot be used for:
    • Bonuses
    • New equipment, furniture, or capital improvements
    • Construction or expansion costs

Administrative costs

  • The bill permits the use of up to 5% of the appropriation for administrative costs, notwithstanding Minnesota Statutes § 16B.98, subd. 14.

Reporting requirements

  • By January 15, 2029, the commissioner (DEED) must report on the grants awarded to the chairs and ranking minority members of the relevant legislative committees (1) on employment and economic development and (2) on transportation finance and policy.
  • The report must, at a minimum, include a complete list of grants awarded, including business names and addresses, types of businesses, and the amount of each award.

Affected parties

Primary beneficiaries

  • Small businesses (≤100 employees) located in the 55616 ZIP code within Two Harbors that have experienced adverse effects from the Highway 61 reconstruction project (access, parking, or visibility).

Implementing and coordinating agencies

  • Minnesota Department of Employment and Economic Development (DEED) — administers the grant program.
  • Minnesota Department of Transportation (MnDOT) — collaborates on program design and project impact considerations.

Procedural and timeline aspects

  • Introduction/First Reading: April 9, 2026
  • Referred to: Jobs and Economic Development (Senate)
  • Key dates within the bill:
    • Fiscal year 2027: Onetime general fund appropriation authorized
    • Deadline for availability: Funds available through June 30, 2029
    • January 15, 2029: Required grant report to Legislature
  • Final reporting: The act requires a detailed grant report to a specified set of legislative committees by the January 2029 deadline.

Notes

  • The exact monetary amount of the appropriation is not specified in the bill text provided (represented as $.......). The final appropriation amount would be determined during the appropriation process.
  • The bill sets a targeted, time-limited intervention to assist small businesses affected by a specific urban road construction project in Two Harbors, aligning with economic development and transportation policy interests.

Compiled from official sources — confirm details with the bill’s official record.

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