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Transportation Economic Development (TED) Project Solicitation Informational Meetings March 2012.

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Presentation on theme: "Transportation Economic Development (TED) Project Solicitation Informational Meetings March 2012."— Presentation transcript:

1 Transportation Economic Development (TED) Project Solicitation Informational Meetings March 2012

2 TED Overview Collaboration between MnDOT, DEED, and the Public Facilities Authority for highway improvement projects that support economic development Seeking projects that will assist development of new business or expanding existing businesses –Target industries: manufacturing, technology, warehousing and distribution, research and development, agricultural processing, bioscience, tourism/recreation, industrial park development Looking for projects that will improve the statewide transportation network

3 TED Phase 1 Projects Selected: Job Growth Supported CommunityProject Description5 Yr Job Estimate St. CharlesI-90 & CSAH 74 Industrial Park 45 ZumbrotaVersaCold/Hwy. 52 & CSAH 68 Reconstruction 25 Two HarborsNorth Shore Manufacturing Hwy 61 Access 125 WorthingtonI-90 & Hwy. 59 expansion for Bus./Ind. Park 450 MarshallHwy 68 & Lake Road Industrial Park 75 Aitkin CountyAmerican Peat Co. CSAH 5 Reconstruction 4 StewartvilleHwy. 63 Business Park Expansion 250 PerhamHwy. 10 & CSAH 34 Interchange 280 St. CloudHwy. 15 & 33rd St. Interchange 165 BloomingtonI-494 & 34th Avenue Interchange 3,264 MinneapolisI-35W & 4th St. Interchange 170

4 2010 TED Projects Local and Private Funds Leveraged CommunityProject Description2010 Awards Local / private / other funds leveraged% Leveraged Non-TED Funding Sources St. Charles I-90 & CSAH 74 Industrial Park $570,000 $ 2,030, % TIF, State Aid, Local Bonds Zumbrota VersaCold/Hwy. 52 & CSAH 68 Reconstruction $1,148, % City and County funds Two Harbors North Shore Manufacturing Hwy 61 Access $912,400 $460, % IRRRB, DEED; Two Harbors, Lake County Worthington I-90 & Hwy. 59 expansion for Bus./Ind. Park $3,300,000 $1,420, % Local Funds, Mn/DOT Marshall Hwy 68 & Lake Road Industrial Park $ 575,000 $247, % Local Bonds Aitkin County American Peat Co. CSAH 5 Reconstruction $ 138,750 $416, % Local funds Perham Hwy. 10 & CSAH 34 Interchange $ 3,997,480 $2,356, % Hospital, KLN, Offut contrib; Ottertail county St. Cloud Hwy. 15 & 33rd St. Interchange $ 8,400,000 $4,000, % local 1/2 cent sales tax, local funds Bloomington I-494 & 34th Avenue Interchange $ 4,200,000 $1,800, % MAC contrib., local funds Minneapolis/ Hennepin Co.I-35W & 4th St. Interchange $ 9,358,375 $4,046, % Hennepin Co. TOTAL $ 33,083,455$18,410, %

5 = TED Other = TED Interchanges

6 TED Phase 1 Projects Not Selected 23 Projects requesting $84 Million for $280 million of projects Ramsey County Big Lake Sandstone East Grand Forks Carlton County Glencoe Duluth Maple Plain Chisholm/Hibbing Maplewood Albertville St. Louis Park Mankato Ramsey Jackson Rochester Roseville Sauk Rapids Le Sueur Cottage Grove Chaska Mankato Moorhead

7 TED Funding $20-30 million available –Trunk Highway Fund, up to $20 million –$10 million in GO Bonds in 2012 Governor’s Bonding Bill –If TED does not receive 2012 bonding Greater MN Business Development Public Infrastructure (BDPI) funds may be available Innovative Business Development Public Infrastructure (BDPI) funds may be available

8 TED Funding $7 Million maximum award Up to 70% of total infrastructure project costs –Max grant could be less based on state law and policies –TED contribution could limited to comply with MnDOT cost participation policy Remaining funds from private and other sources Funding split between Metro and Greater MN –Greater MN proposals reviewed separately from Metro

9 TED Funding Trunk highway bonds used for eligible costs in trunk highway DEED funds required to be spent outside trunk highway BDPI/Innovative funds require 50% match –Greater MN BDPI only in Greater MN –Innovative BDPI must meet Innovative definition

10 TED Funding Timeline February 15 – Solicitation announced, application available March 6-9 – Informational sessions held April 27 – Applications due May 18 – Projects selected May – October – Confirm project readiness

11 TED Eligible Applicants Must be a government entity as defined by state law –Trunk Highway fund and proposed TED GO Bonding eligible applicants include any government entity –Greater Minnesota BDPI eligible applicants include statutory home rule charter cities and counties located outside the metropolitan area. (Chisago County is eligible) –Innovative BDPI eligible applicants include counties, cities, special districts, public higher education institutions, or other public political subdivisions or public corporations throughout the state (including the metropolitan area)

12 TED Phase 1 Application Scoring Eligibility Criteria –Must answer yes to all to be eligible Prioritizing Criteria –35 Points – Transportation System –35 Points – Economic Development –20 Points – Financial Plan –10 Points - Readiness

13 TED Application General Information –Basic applicant and project information –Brief project narrative –Project Costs (just transportation and infrastructure costs) –Project funding sources and status of commitment

14 TED Application Transportation System (35 Points) –Enhances safety of statewide transportation system –Improves mobility access –Supports modal integration

15 TED Application Economic Development (35 points) –Leads to private investment and job creation/retention in manufacturing, technology, or other identified business types –Names of impacted businesses –North American Industry Classification System (NAICS) Codes –Jobs created in 2 & 5 years –Wages of created jobs –Building and equipment investments within 2 years –Effect on tax base

16 TED Application Company NAICS CODE # of Jobs (2 Years) # of Jobs (5 Years) Avg. Wages Building Cost Building Type Building Completion Timing Equipment Cost Equipment Type Equipment Purchase Timing Minnesota Manufacturing Inc $45,000 per year $5,000,000Industrial12/31/14$1,000,000 Communications Equipment 3/1/15 Economic Analysis Data Table

17 TED Application Financial Plan (20 points) –Identify all funding sources –If not committed, explain steps to get commitment Project Readiness (10 points) –Can project be let by 1/1/15 –Project schedule (earlier the better) –Current status for planned development (including environ.) –Community support from private and public partners – (Letters of support are encouraged)

18 TED Application Submission Application Deadline: 4:30 p.m. on 4/27/12 Submit two copies of the General Project Information Form and Application Mail to Matt Shands at MnDOT

19 TED Application Tips Retail is not an eligible business Businesses should not be overly speculative Higher private and/or non-TED leverage will score better More secure leverage will score better Mature projects with developed planning will score better Not just interchanges Must be state trunk highway for Mn/DOT funds, not for DEED funds For NAICS see

20 Project Examples: Perham – Highway 10 Interchange Better access to Barrel O’Fun, Tuffy’s Pet Foods, Kenny’s Candies and a new hospital Creation of 240 jobs $270,000 of private funds $4 million of TED funds Total project cost is $6,711,762

21 Examples: Penn Ave and I-494 – Bloomington $21 million for interchange providing direct access to Best Buy headquarters State, City, and private participation (Best Buy) Bren Road and TH 169 – Minnetonka Interchange access to Opus Business Park (United Health Group) Potential for ~4,000 new high paying jobs Project Examples: Perham

22 Project Examples: St. Cloud – Highway 15 & 33 rd Street Interchange Currently an 8 mile stretch of I-94 in St. Cloud without direct access or frontage roads 5 mile circuitous route through one of St. Cloud’s busiest intersections (TH 15 and TH 23) Better access to 400 acres of prime industrial land In less than 10 years following the construction of the I-94 and Opportunity Drive Interchange, 1,521 jobs were created in the area.

23 Examples: Penn Ave and I-494 – Bloomington $21 million for interchange providing direct access to Best Buy headquarters State, City, and private participation (Best Buy) Bren Road and TH 169 – Minnetonka Interchange access to Opus Business Park (United Health Group) Potential for ~4,000 new high paying jobs Project Examples: St. Cloud

24 Project Examples: Bloomington– 494 & 34 th Avenue Interchange Upgrade from a diamond interchange to a diverging diamond interchange Reduce queue crashes Improve access for Corporate offices Minneapolis International Airport Mall of America The total project cost is $6 million.

25 Examples: Project Examples: Bloomington

26 Project Examples: Zumbrota – Northwest Industrial Development – Versa Cold Expansion Accommodates further industrial development along TH 52 Key safety enhancement by closing high crash access to freeway Convert existing local route with direct access to TH 52 to 10 ton capacity Accommodates expansion of existing business (VersaCold Logistics)

27 Examples: Project Examples: Zumbrota

28 TED Contact Information Matt Shands (651) Jeremy LaCroix (651) TED Website: TRLF Website:


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