HF4945

Purpose

This bill creates a one-time grant program funded from Minnesota’s general fund to help small businesses affected by the redesign and construction of marked Trunk Highway 61 (7th Avenue) in the city of Two Harbors. The program is administered by the Department of Employment and Economic Development (DEED) in collaboration with the Department of Transportation (DOT), with the goal of offsetting financial hardships caused by reduced road access, parking, or visibility due to the project.

Main Provisions

• Funding and duration
  • In fiscal year 2027, a general fund appropriation is provided to DEED for the grant program. This is a one-time appropriation, available through June 30, 2029.
• Administration and collaboration
  • DEED must establish a grant program in consultation with DOT to deliver financial assistance to qualified businesses harmed by the highway project.
• Eligible businesses
  • A business must meet all of the following to be eligible:
  • Employ no more than 100 full-time equivalent (FTE) employees.
  • Be located within the ZIP code 55616.
  • Experience impairment of road access, parking, or visibility as a result of the project.
  • DEED may add other requirements as needed to efficiently and equitably distribute the funds.
• Authorized uses of funds
  • Grants may be used for payroll expenses, operating expenses, or facilities expenses.
  • Grants may not be used for bonuses, new equipment, furniture, capital improvements, or for construction or expansion.
• Administrative costs
  • Up to 5% of the appropriation may be used for administrative costs.
• Reporting requirement
  • By January 15, 2029, DEED must report on the grants awarded to the chairs and ranking minority members of the legislative committees with jurisdiction over employment and economic development and transportation finance and policy. The report must include a complete list of grants, including business names and addresses, types of businesses, and the amount of each award.

Significant Changes to Existing Law

• Establishment of a targeted, one-time grant program to assist small businesses impacted by a specific DOT construction project (Highway 61/7th Avenue in Two Harbors).
• Creation of a dedicated funding stream from the general fund for this purpose, with a defined end date for usage (June 30, 2029).
• Formal collaboration between DEED and DOT to design and administer the program, with specific eligibility criteria and allowable uses of funds that are more restrictive than general assistance programs.
• Introduction of a reporting requirement to provide lawmakers with details on grants awarded, enhancing transparency for this targeted relief effort.

Timing and Oversight

• Fiscal year 2027 funding is the source, with the program available until June 30, 2029.
• A formal reporting deadline is January 15, 2029, to legislative leadership.

Relevant Terms - Department of Employment and Economic Development (DEED) - Department of Transportation (DOT) - general fund - one-time appropriation - fiscal year 2027 - Two Harbors - marked Trunk Highway 61 - 7th Avenue - ZIP code 55616 - small business - full-time equivalent (FTE) - road access - parking - visibility - construction mitigation grants - financial assistance - payroll expenses - operating expenses - facilities expenses - administrative costs - reporting requirements - grants awarded - business names - business addresses - grant amounts