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Delano council authorizes TED grant agreements
July 23, 2012

By Ryan Gueningsman
Managing Editor

DELANO, MN – Progress continues to be made as Delano City Council approved two grant agreements Tuesday night for initial work at the northwest business park.

The city is the recipient of a Transportation Economic Development (TED) Program grant for $1.6 million.

Of that, the council approved agreements for $700,000 through the TED program itself, and another $360,000 through the business development public infrastructure program. The remainder of the $1.6 million will be funded through Minnesota Department of Transportation (MnDOT), with that agreement coming before the council at a later date.

TED, now in its second year, is part of a joint effort by the Minnesota Department of Employment and Economic Development (DEED) and MnDOT to improve transportation infrastructure, create jobs, and encourage economic development in the state.

City Administrator Phil Kern said the grant will help the city get a leg up on starting the business park, and said while the grant administration did add some complexity to the project, it wasn’t anything that was not expected. The grant supplements special assessments and developer contributions to the project, it was noted.

The city has also entered into agreements with the Ken and Penni Murphy for inclusion of their property in the development, Kern noted. The next steps to keep the project moving forward are to enter into a master agreement with the Lahti/Moonen development group, followed by the development of plans and specifications. Randy’s Environmental Services is planning on expanding into the business park area and is poised to add about 30 jobs with the expansion.

In an update provided to the Delano Area Chamber of Commerce, Kern said it would be the plan to bid and build in the spring of 2013.

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