SF5012

Purpose

Provide a one-time financial grant program to help small businesses in Two Harbors that are negatively affected by a Department of Transportation highway redesign and construction project along marked Trunk Highway 61 (7th Avenue).

Scope and targeted businesses

• Location: businesses located in ZIP code 55616 (Two Harbors).
• Size: businesses with no more than 100 full-time equivalent employees (FTE) or part-time employees.
• Impact: businesses that experience impairment to road access, parking, or visibility because of the highway project.
• Intent: to mitigate economic hardship caused by the construction and redesign work.

How the program is created

• Administration: the Department of Employment and Economic Development (DEED), in consultation with the Department of Transportation (MnDOT), must establish the grant program.
• Partnership: the program is designed to address effects of MnDOT’s redesign and construction along Highway 61 (7th Avenue) in Two Harbors.

Financial details and timing

• Funding source: general fund.
• Amount and duration: a one-time appropriation for fiscal year 2027, available until June 30, 2029.
• Eligible uses of funds: grants may be used for employee payroll expenses, operating expenses, or facilities expenses.
• Ineligible uses of funds: cannot be used for bonuses, new equipment, furniture, capital improvements, or construction or expansion projects.

Administrative costs

• Up to 5% of the appropriation may be used for administrative costs.
• This allowance is provided despite the usual restrictions in Minnesota law (notwithstanding Minnesota Statutes section 16B.98 subdivision 14).

Reporting requirements

• By January 15, 2029, the commissioner 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 at minimum: a complete list of grants awarded, including business names and addresses, types of businesses, and the amount of each award.

Significance and changes to law

• This bill creates a new, targeted grant program funded by a one-time general fund appropriation to assist small businesses affected by a specific highway project.
• It adds eligibility criteria (location, size, and impact), permissible uses of funds, and a cap on administrative costs.
• It requires detailed reporting to the legislature about grant recipients and amounts.
• It represents a shift from general programs to a focused mitigation effort tied to the Trunk Highway 61 project in Two Harbors.

Relevant terms - Department of Employment and Economic Development (DEED) - Department of Transportation (MnDOT) - Trunk Highway 61 - 7th Avenue - Two Harbors - ZIP code 55616 - one-time appropriation - general fund - fiscal year 2027 - available until June 30, 2029 - qualified businesses - up to 100 full-time equivalent (FTE) or part-time employees - road access, parking, or visibility impairment - financial assistance - payroll expenses - operating expenses - facilities expenses - bonuses - new equipment - furniture - capital improvements - construction or expansion - administrative costs (up to 5%) - Minnesota Statutes section 16B.98 subdivision 14 (notwithstanding) - January 15, 2029 report - grant recipients list (business names, addresses, types, amounts) - chairs and ranking minority members - legislative committees: employment and economic development; transportation finance and policy