2022 Greater Minnesota Solictation - Transportation Economic Development Program

2023 Transportation Economic Development Solicitation

Our Transportation Economic Development (TED) program is a competitive funding program designed to help generate economic benefits through investment in transportation infrastructure. Under this solicitation, we have $20 million to help fund construction projects in calendar years 2024 through 2026. You can use TED program funds only on trunk highway eligible projects.

Maximum award

We'll fund up to 70% of the total transportation infrastructure cost of the project or the state’s maximum allowable share as determined by our cost participation policy or Minnesota State Statute 174.12 Subd. 7, whichever is less.

Eligibility

Cities, counties, tribes and other government entities in Minnesota can apply for funds for transportation infrastructure projects on state highways that support economic development.

Greater Minnesota

Greater Minnesota is anywhere in the state outside of the seven-county metropolitan area (Hennepin, Scott, Carver, Ramsey, Dakota, Washington, and Anoka counties).

Projects

Your proposed project must have a trunk highway purpose. It must improve, enhance or modify a state trunk highway or highway right of way. Your project may do more than improve the trunk highway, but this program can fund work only on the trunk highway and trunk highway right of way as specified in our Cost Participation Policy for Cooperative Construction Agreements.

New or modified interchanges on interstates

If you want to submit an application for new or modified interchanges on interstates, you should consult with the Federal Highway Administration Minnesota division before you submit a TED application.

Measurable economic benefits

This program is for improvements that lead to measurable economic benefits. Your project must contribute to job creation, job retention or another measurable economic benefit. Housing development cannot be the primary beneficiary of the project.

Match requirement

You must identify other funding sources that will contribute to the transportation construction cost of your project. We encourage you to consult with your MnDOT district office to determine appropriate cost share estimates.

Preparing your application

Applicants are strongly encouraged to submit an expression of interest MnDOT TED 2023 Form by July 24, 2023.
- This short form does not commit an applicant to submitting a full funding application but is intended to initiate a conversation with MnDOT program and district staff about potential project ideas. MnDOT district staff will follow-up with all expressions of interest to discuss the potential project in detail and assist applicants with the process.
Once we receive your expression of interest, we work with you to review the project and collect all necessary information through our application by 5 p.m. on Sept. 22, 2023.
We encourage you to work with local port authorities, economic development authorities, housing and redevelopment authorities and other agencies that specialize in economic development.
Prepare the following required attachments:
- An economic impact spreadsheet
  - Economic impact spreadsheet template (Excel)
- A resolution indicating the governing body’s approval of this application and commitment of the match funding identified in the application
  - Model resolution language (Word)
- A map showing the project location and the locations of affected businesses
- A project layout or conceptual drawing
Optional attachments:
- Letters of commitment from the new or expanding businesses
- Evidence of community support
- Documentation indicating project is consistent with all applicable comprehensive plans, zoning ordinances, etc.

Deadlines

Expressions of interest are due July 24th, 2023 and full application will be due on Sept. 22, 2023.

How To Get More Information

An online information session discussing both the MnDOT TED program and DEED’s Transportation Economic Development Infrastructure Program is scheduled for July 10, 2023 from 10:00-11:30 am. Link Any identifying information (such as your name) will only be used for the purpose of understanding program questions. MnDOT invites and encourages participation by all. If you need an ASL, a foreign language interpreter, or other reasonable accommodation, please email your request to ADArequest.dot@state.mn.us or call 651-366-4720.

Questions regarding this solicitation for TED may be directed to Peter Olson Peter.olson@state.mn.us or Jim Flaaen James.Flaaen@state.mn.us.

After you apply

Confirmation

We'll let you know when we receive your application.

Preliminary scoring

We'll review your project and provide comments. We may also ask metropolitan planning organizations and/or regional development organizations for feedback. We'll analyze your application and assign a preliminary score.

Scoring criteria

Projects must receive at least 50 points to be eligible for funding.

Criteria	Points available
Economic benefits	40
Transportation benefits	35
Percentage of non-MnDOT funding	5
Project risk assessment	20

We may award extra points if you include contributions from non-public sources or if the project advances the geographic distribution objectives in Minnesota State Statute 174.12. Total scores can't be higher than 100 points.

Criteria	Points available	Basis
Job creation/retention per $1 million of project cost	20	Based on the difference between the 5 year job estimate with the project and the 5 year job estimate without the project divided by the cost of the project in millions
Income creation/ retention	20	Based on the difference between the 5 year estimate of wage income with the project and the 5 year estimate wage income without the project

Impact to targeted labor/industry

The selection committee may assign up to 5 points if the jobs created/retained are likely to benefit a low-income community, tribal community, community of color or people with disabilities.

There has to be a reasonable logic as to how the jobs would benefit those communities – pure proximity is insufficient unless the types of jobs created are matched to the skills/abilities of that community or there are established/planned job training programs to connect nearby residents to these new jobs.

Selection committee adjustments

The selection committee may adjust scores for overly speculative claims or overly conservative estimates.

Economic benefits scores can't be higher than 40 points.

Criteria	Points Available	Basis
Benefit-cost ratio	10	Transportation benefit-cost analysis based on crash information supplied by the applicant as well as MnDOT staff analysis following MnDOT’s standard procedure.
Plan consistency and need	25	Based on the need for the project, plan consistency and improvements for freight and multimodal transportation (see factors below)

Factors considered in assigning points for “plan consistency and need”:

Addresses a sustained crash location and/or a safety issue identified in a district or county safety plan
Score from the Greater Minnesota Mobility Study
Addresses a pavement or bridge condition need (conversely, points may be lowered for projects that proposed work on assets with significant remaining service life)
Improves access to a port, airport or intermodal facility
Heavy commercial truck traffic
Removes a geometric barrier or avoids future load restrictions on an Oversize/Overweight route
Addresses a flood risk
Includes improvements for pedestrians/Priority Areas for Walking Score (PAWS)
Addresses ADA issues identified in MnDOT ADA transition plan
Development includes complete and interconnected pedestrian network
Includes improvements for bicycling
Improves access to transit
Number of existing and planned EV chargers at benefiting businesses
Infill development
Project includes expanding fiberoptic coverage

Projects do not need to address all of the factors listed to receive full points.

Projects that aren't fully funded by MnDOT can receive up to 5 points. The percentage is based on estimated total transportation project cost, not just trunk highway eligible costs.

Risk category	Points available	Basis
Environmental Documentation	2	Based on the status of the environmental document
Right of Way	5	Based on whether right of way acquisition in needed and the status of the acquisition
Railroad Involvement	3	Based on whether the project requires a railroad right of way agreement and the status of that negotiation
Funding	10	Based on the level and status of funding for the project

As long as a project’s total score isn't over 100 points, you may receive additional points for the following:

Non-public funding or in-kind assistance: Based on Minnesota Statutes 174.12 Subd. 5 (3), we may award up to 5 bonus points if any of the project costs are covered by private contributions or right of way donations.
Geographic distribution: Based on Minnesota Statutes 174.12 Subd. 5 (6), up to 5 bonus points will be assigned to project based on the following methodology:
- Location (municipality) has not received funding in the last two rounds of TED - 1 point
  - Location (municipality) has never received funding from TED – 1 additional point
- Region (based on Regional Development Organization boundaries) has not received funding in the last round of TED – 1 point
  - ... in the last two rounds – 1 additional point
  - ... in the last three rounds – 1 additional point

Transportation Programming and Investment Committee review

Our Transportation Programming and Investment Committee hears a presentation of the selection committees recommendations and makes a recommendation to the MnDOT and DEED Commissioners.

Commissioner approvals

The commissioners of both the Department of Transportation and the Department of Employment and Economic Development review and approve the final selection decisions.

Awards

Notification

We'll notify you with the decisions and we'll publish final scores.

Monitoring project status

After funding awards are announced, we'll monitor the project to ensure progress and program compliance, and work with you to develop final cost-share agreements.

Reporting requirements

If awarded funds, you'll need to submit annual reports beginning one year after construction is complete for up to five years after construction. If you fail to demonstrate adequate progress during the project’s pre-development phase, we may withdraw funding and allocate that funding to another project.

Deadline for use of funds

Projects must begin construction by the end of calendar year 2025, unless an extension is requested in writing and approved by MnDOT.

After projects are selected for funding, we'll continue to work closely with you to ensure that project pre-development activities such as project financing, right-of-way acquisition and environmental permitting proceed on schedule. Final cost sharing agreements will be completed based on an analysis of project elements and the MnDOT cost participation policy. This analysis could change the amount of the grant awarded.