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Nearly $24 million in grants awarded to Greater Minnesota communities to help boost development

Gov. Tim Walz announced 36 Minnesota cities, townships and counties will receive a piece of the nearly $24 million purse as part a state grant program.
Credit: Minnesota DEED

ST PAUL, Minn. — Nearly 40 communities in Greater Minnesota are about to get a big boost to their economies after being selected as this year's Small Cities Development Program grant recipients. 

On Monday, Gov. Tim Walz announced 36 Minnesota cities, townships and counties will receive a piece of the nearly $24 million purse as part of a state grant program paid through the Minnesota Department of Employment and Economic Development (DEED). The funding from DEED's grant program is awarded by the federal government's Department of Housing and Urban Development Community Development Block Grant Program. 

“These grants not only help individual communities address their unique goals and needs, but also help bolster the state’s overall economic position and its reputation as a great place for business and quality of life,” said Lieutenant Governor Flanagan in a statement. “This is how we build strong communities and support Minnesotans across the state.”

According to a statement from the governor's office, the grants may be used by recipients for residential and commercial property rehabilitation, and upgrading public facilities, among other economic development projects.

Eligibility is determined by whether they meet at least one of these federal objectives:

  • Benefit people of low and moderate incomes based on individual and area income standards;
  • Eliminate slum and blight conditions; or
  • Address an urgent community need to eliminate a public health or safety threat.

Additionally, prospective recipients can apply for the grants to be used for one or more of these types of projects:

  • Residential owner-occupied or rental property improvement projects to increase the quality of dwellings suited for individual or family occupancy. Examples include exterior repairs and replacement projects, insulation, HVAC, electrical, plumbing, lead paint remediation or accessibility modifications.
  • Commercial property improvement projects for buildings occupied by retail and independent businesses. This can include façade improvements (e.g. awnings, exterior signs), building code issues and energy efficiency.
  • Public facility improvement projects that serve neighborhoods or communities, such as community centers, streetscapes, or wastewater treatment projects.

To apply, interested cities must have fewer than 50,000 residents, while townships and counties must have populations under 200,000.

“We are dedicated to making Minnesota the best state to live, work, and raise a family – no matter where in the state you call home,” said Governor Walz in a statement. “These grants will boost our economy and help Greater Minnesota communities throughout the state grow and thrive.”

For communities who want a piece of next year's grants, the preliminary deadline to apply is Nov. 29, 2023.

The final application deadline is April 17, 2024.  

Interested? Apply here.

2023 Small Cities Development Program Grant Recipients: 

  • Bagley, $345,000
    Owner-occupied housing rehab

  • Baudette, $1,200,000
    Rental housing rehab and public facility improvements

  • Big Falls, $170,430
    Rental housing rehab

  • Brainerd, $575,000
    Owner-occupied housing rehab and rental housing rehab

  • Brooten, $600,000
    Public facility improvements

  • Clarkfield, $600,000
    Public facility improvements

  • Darwin, $600,000
    Public facility improvements

  • Deer Creek, $581,430
    Public facility improvements

  • Delhi, $600,000
    Public facility improvements

  • Dodge Center, $431,250
    Owner-occupied housing rehab

  • Edgerton, $1,049,375
    Owner-occupied housing rehab, rental housing rehab and commercial rehab

  • Erskine, $704,375
    Rental housing rehab and commercial rehab

  • Fosston, $597,713
    Owner-occupied housing rehab

  • Granite Falls, $943,000
    Rental housing rehab and commercial rehab

  • Hallock, $414,000
    Owner Occupied Housing Rehab

  • Holland, $600,000
    Public facility improvements

  • Kasota, $554,000
    Public facility improvements

  • Kelliher, $417,300
    Public Facility Improvements

  • Lake Lillian, $600,000
    Public facility improvements

  • Lonsdale, $431,250
    Owner-occupied housing rehab

  • Mabel, $600,000
    Public facility improvements

  • Madison, $599,610
    Owner-occupied housing rehab and rental housing rehab

  • Minneota, $599,265
    Owner-occupied housing rehab and rental housing rehab

  • Nielsville, $600,000
    Public facility improvements

  • Okabena, $600,000
    Public facility improvements

  • Pequot Lakes, $600,000
    Public facility improvements

  • Randall, $600,000
    Public facility improvements

  • Red Lake Falls, $929,200
    Owner-occupied housing rehab, rental housing rehab and commercial rehab

  • Sacred Heart, $1,175,000
    Owner-occupied housing rehab and public facility improvements

  • Staples, $948,750
    Owner-occupied housing rehab, rental housing rehab and commercial rehab

  • Stephen, $368,000
    Owner-occupied housing rehab and commercial rehab

  • Tracy, $1,127,000
    Owner-occupied housing rehab and commercial rehab

  • Watkins, $943,000
    Owner-occupied housing rehab and commercial rehab

  • Waubun, $573,600
    Public facility improvements

  • Wood Lake, $600,000
    Public facility improvements

  • Big Stone, $599,265
    Owner-occupied housing rehab and rental housing rehab

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