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HF 4945

Two Harbors; Funding provided for construction mitigation grants to businesses affected by construction on marked Trunk Highway 61, and money appropriated.

2025-2026 Regular Session Introduced by Roger Skraba and 1 co-sponsor

DEED will run a one-time grant program to help up to 100-employee ZIP 55616 businesses affected by the Highway 61 construction, covering payroll, operating, and facilities costs.

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy
#appropriations #business #citiesandtowns-specific #employmentandeconomicdevelopmentdepartment
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Bill Summary · HF 4945

Summary of HF 4945 (2025-2026) – Two Harbors: Construction Mitigation Grants

Purpose

HF 4945 provides a onetime appropriation from the General Fund to support financial relief for small businesses in Two Harbors that are adversely affected by the redesign and construction of marked Trunk Highway 61 (also known as 7th Avenue) through the city. The bill directs the Department of Employment and Economic Development (DEED) to establish a grant program to aid eligible businesses and requires a formal report on awards.

Key Provisions

  • Funding and timeframe

    • A one-time appropriation of an unspecified amount (referenced as “$.......”) to DEED in fiscal year 2027.
    • The funds are available until June 30, 2029.
    • Up to 5% of the appropriation may be used for administrative costs, notwithstanding the typical cap under Minnesota Statutes (section 16B.98, subdivision 14).

  • Grant program design

    • DEED, in consultation with the Department of Transportation (MnDOT), must establish a grant program to provide financial assistance to qualified businesses affected by the highway project in Two Harbors.
    • Targeted to businesses affected by the redesign/construction along marked Trunk Highway 61 (7th Avenue) in Two Harbors.

  • Eligibility criteria for qualified businesses

    • Business size: Employs no more than 100 full-time equivalent or part-time employees.
    • Location: Located within the ZIP code 55616.
    • Impact: Must experience impairment to road access, parking, or visibility due to the project.
    • The commissioner may add additional requirements beyond those listed to efficiently and equitably administer the program.

  • ** allowable use of funds**

    • Grants may be used for:
    • Employee payroll expenses
    • Operating expenses
    • Facilities expenses
    • Restrictions: Grants may not be used for bonuses, new equipment, furniture or capital improvements, nor for construction or expansion.

  • Reporting and accountability

    • By January 15, 2029, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over:
    • Employment and economic development
    • Transportation finance and policy
    • At minimum, the report must include a complete list of grants awarded, including business names and addresses, types of businesses, and the amount of each award.

Who Is Affected

  • Directly affected businesses

    • Small businesses located in ZIP code 55616 that rely on access to Trunk Highway 61 (7th Avenue) and experience impairment in access, parking, or visibility due to the construction.
    • Must have 100 or fewer FTEs to qualify.

  • State agencies

    • Department of Employment and Economic Development (DEED) administers the grant program.
    • Department of Transportation (MnDOT) collaborates in program design and implementation.

Procedural and Timeline Aspects

  • Introduction and status

    • Introduced and read for the first time on April 13, 2026.
    • Referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy.

  • Implementation timeline

    • Funding is for FY 2027 (one-time appropriation).
    • Available through June 30, 2029.
    • Final reporting deadline for grant awards is January 15, 2029.

  • Reporting

    • A detailed grant award report is due to specified legislative committees, including business names, addresses, types, and amounts.

Notes

  • The bill text specifies an unspecified dollar amount for the FY 2027 appropriation (represented as "$......."), to be determined. The program is explicitly a one-time initiative rather than ongoing funding.
  • The bill includes a modest administrative cost allowance (up to 5%), which is notable given typical statutory limits.

If you’d like, I can convert this into a quick one-page briefing for a policy briefing packet or tailor it to a lay audience with even more plain-language examples.

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

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