Minnesota Department of Transportation

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Transportation Economic Development

construction zone

TED Program

Established in 2010, the Transportation Economic Development Program provides competitive grants to construction projects on state highways that provide measurable economic benefits. The Minnesota Department of Transportation, in partnership with the Minnesota Department of Employment and Economic Development, administers the program. DEED administers a parallel Transportation Economic Development Infrastructure (TEDI) program that funds projects on local roads and for other types of transportation. Projects may combine funding from both programs.

Eligibility

The TED program specifically targets transportation improvements that will lead to measurable economic benefits. For a project to be eligible, it must contribute to job creation or retention or another measurable economic benefit. Eligible applicants are any governmental entity as defined by state law. The TED program will provide funding for up to 70 percent of the total transportation infrastructure cost of the project or the state’s maximum allowable share as determined by MnDOT’s cost participation policy or MN State Statute 174.12 Subd. 7, whichever is less.

2019 solicitation

The Minnesota Department of Transportation selected five state highway projects that will help support growing industry and businesses, leverage private funding and improve the transportation system for all users. The five projects will receive a total of $18 million from the TED Program. The Department of Employment and Economic Development has also awarded $2.86 million for three additional projects in Mankato, Sherburne County and Minneapolis through the TEDI program.

Twin Cities Metro Area

  • Washington County – The interchange at Highway 36 and Manning Avenue will improve access to planned development in the area, which includes a future Lakeview Hospital complex, a grocery store and other business development. The project is expected to help create 360 new jobs within five years.
  • City of Chaska – The Highway 41 reconstruction project in downtown Chaska will address current four-lane roadway issues by adding turn lanes and on-street parking for safer driving conditions.
  • City of Dayton – Construction of the Dayton Parkway Interchange on Interstate 94 in the northwest Twin Cities metro area is anticipated to start in 2020 and will help create 100 new jobs in the next five years.
  • Scott County – A grade separated interchange, additional frontage roads and accompanying access ramps along Highway 13 will be constructed within the vicinity of Dakota and Yosemite avenues in Savage. The interchange is adjacent to the Ports of Savage, a key intermodal hub for transporting grain, commodities and other commercial products from southwestern Minnesota to the rest of the world.

Greater Minnesota 

  • City of Cloquet – A reduced conflict intersection is being constructed on Highway 33 and Gillette Road in Cloquet and will be completed May 2022.

A total of $20 million was available for projects in this round of the TED program. MnDOT anticipates soliciting additional projects in Greater Minnesota in 2020 for the remaining funds.

How the projects scored

MnDOT received six applications for TED funding during the 2019 solicitation. Applications from the Minneapolis-St. Paul metropolitan region are scored and prioritized separately from projects in Greater Minnesota. The criteria and scoring process is similar for each, but the methods and weights vary for some criteria. Scores are not directly comparable between Greater Minnesota projects and Metro area projects even though both use a 100 point scale. See the TED Scoring Process Document to learn more about how MnDOT evaluates and selects projects.

Metro Applications

Score

Applicant

Project Name

Amount Requested

Amount Awarded

89

Washington County

Highway 36/Manning Avenue Interchange Project

$10,000,000

$10,000,000

72

Chaska

Highway 41 Improvements in Historic Downtown Chaska

$3,500,000

$3,500,000

67

Dayton

I‐94/Dayton Parkway Interchange

$2,000,000

$2,000,000

65

Scott County

Highway 13 and Dakota Avenue Freight Access and Mobility Project

$5,500,000

$2,000,000

48

Maple Grove

Highway 610 Connection

$10,000,000

$0

Greater Minnesota Application

Score

Applicant

Project Name

Amount Requested

Amount Awarded

84

Cloquet

South Highway 33 reduced conflict intersection (RCI) project

$665,000

$665,000