Today, the Department of Employment and Economic Development announced the first $40 million in awards for the Main Street Economic Revitalization Program. The awards were granted to eight partner organizations that will then fund development and redevelopment projects in their service territory by providing 30% matching grants up to $750,000 or guaranteed loans up to $2 million. Projects must address the greatest economic development or redevelopment needs that have arisen in communities across Minnesota since March 15, 2020, which includes both the impact of the COVID-19 pandemic and the civil unrest that resulted from the murder of George Floyd.
Of the $40 million awarded today, $4.2 million will fund projects in CGMC members’ commercial corridors, including Granite Falls, Litchfield, Park Rapids, Virginia, and Worthington. An additional $4.4 million will fund projects in Duluth and Rochester, while $30 million is being made available for projects in the Twin Cities, with the vast majority targeted at addressing the impact of the civil unrest in Minneapolis and St. Paul.
Given the economic impact along Lake Street in Minneapolis that resulted from the civil unrest, we are not surprised that the majority of the first round of funding went to support Minneapolis and St. Paul. In fact, the Main Street Economic Revitalization Program was born out of an initial proposal to provide funds directly to the two urban cities to address the impacts of the unrest. However, the legislation that created the program calls for an even split in funding between the metro area and Greater Minnesota, and no more than 65% of the funding may go to one area.
The second round of funding, which is expected to be awarded in March, will also be for $40 million. We hope and expect that the second round will be more heavily invested in projects in Greater Minnesota. However, that will be dependent on the quantity and quality of the grant applications.
For more information on the program, visit the Minnesota Main Street Economic Revitalization Program webpage or contact CGMC lobbyist Scott McMahon at shmcmahon@flaherty-hood.com.
