Total project costs for the Perham interchange is approximately $6.7 million. TED funds from MnDOT and DEED contributed $3.5 million. The remainder of the funding is from the MnDOT district, Otter tail County, the City of Perham, and a direct contribution from the hospital, KLN, and Offut.
Otter Tail County State Aid Highway 34 currently passes over U.S. Hwy 10 (four lane highway) on the west side of the City of Perham, but prior to the construction of this project, there was no existing off/on access to U.S. Hwy 10. This TED project (project map) adds four legs to the intersection to create a diamond shaped interchange The project also includes turn lanes, widening, shouldering, curb/gutter, signal lights, and other improvements to
US Hwy 10 is a major traffic artery with 4,600 cars per day. Construction is now complete on the new Perham Memorial Hospital located near the interchange. The hospital generates over 6,000 employee and patient trips per week and serves a population of over 30,000 in the peak summer months. Ambulance traffic and emergency access to the
hospital will benefit from the improvement by significantly reducing access time from the highway to the hospital.
Perham is home to a number of large manufacturers that rely on the transportation network to move freight. Over 1,200 semis travel to Perham weekly, many are routed down Main Street and residential streets. The interchange will decrease reliance on the local road system to move these heavy loads.
Economic Development Impacts
The new Perham Memorial Hospital is a $34 million investment in rural health care and would be directly served by the proposed interchange. The new hospital provides supports access to the hospitals existing 440 employees and provides opportunity for 25 new hires in the next two years.
- Barrel o' Fun Snack Food Company (owned by KLN Companies) would also directly benefit from the interchange for movement of their employees and frieght. Barrel O' Fun recently added a $3.5 million office building expansion in 2010. The company is growing and anticipates hiring an additional 120 employees in the next five years. The company currently employs 768 in their Perham operation.
- Tuffy's Pet Foods (also owned by KLN Companies) has begun construction on a $15 million expansion. Tuffy's currently employs 182 people and anticipates adding 70 jobs in the next couple of years.
- Kenny's Candy (also owned by KLN Companies) currently employs 112 workers with the anticipation of adding 50 new jobs and $5 million worth of capital outlays within the next five years.
With the construction of the new hospital, the area immediately adjacent to the interchange is ripe for economic development. The City owns several lots with infrastructure available for sale near the hospital site. The interchange will promote economic development immediately near the hospital in addition to the vacant property located along CSAH 34.