Transportation Economic Development Program

The Transportation Economic Development Program (TED) is a competitive grant program available to communities for highway improvement and public infrastructure projects that create jobs and support economic development.

The program is a collaboration between the Minnesota Department of Employment and Economic Development (DEED) and the Minnesota Department of Transportation (MnDOT). The program may provide up to 70 percent of the costs for trunk highway interchanges and other improvements (which is defined as the accepted bid of the construction cost of the project) or the state's share as determined by Mn/DOT's cost participation policy, whichever is less.

A total of approximately $30 million is available through the 2015 TED program solicitation. This includes approximately $28 million in MnDOT trunk highway funds and approximately $2 million of DEED general obligation bond funding.


Eligible applicants must be governmental entities as defined by state law. Although private entities are not currently eligible for TED financing, they may enter into agreements with eligible borrowers to request funding for eligible public transportation projects.

For a project to be eligible, it must support one or more of the following industries: manufacturing, technology, warehousing and distribution, research and development, agricultural processing, bioscience, or tourism/recreation. Projects that support industrial park development or mixed-use or high-density multimodal development are also eligible for the program.

Award Amounts
The maximum amount of funding that any project may receive is $10 million.

The matching funds offered by the local applicant may come from other federal, state, local and private funding sources. Private funding sources are the most beneficial to a proposal.

Evaluating Proposals
Projects will be selected on the basis of evaluation criteria in four broad categories: 1) transportation impact; 2) statewide economic impact; 3) project financial plan; and 4) project readiness.

The program makes every effort to award funds equally to Greater Minnesota and the seven-county Twin Cities metropolitan area. Due to project sizes, however, the split may not be exactly 50-50.

Application Process

2015 Application Form

Download the TED Solicitation Notice and Application

2015 Application Process Timeline

July 27, 2015   Solicitation announcement distributed
July 28 – Sept. 25, 2015   Applications prepared (MnDOT and DEED offer guidance)
August 11 – 20, 2015   TED program informational sessions (see schedule below)
September 25, 2015   Applications due to MnDOT
December 2015   Projects selected and approved
January – December 2016   Project status monitored by MnDOT and DEED to develop final cost-share agreements, ensure progress and program compliance

2015 TED Informational Sessions





August 11

Detroit Lakes

MnDOT District 4 Office
1000 Highway 10 West
Detroit Lakes, MN 56501

10:00 AM – Noon

August 12



MnDOT District 7 Office
2151 Bassett Drive
Mankato, MN 56001

10:00 AM – Noon

August 13


MnDOT District 3 Office
7694 Industrial Park Rd.
Baxter, MN 56425

10:00 AM – Noon

August 13


MnDOT District 2 Office
3920 Highway 2 West
Bemidji, MN 56601

2:00 PM – 4:00 PM

August 14


MnDOT District 1 Office
1123 Mesaba Ave.
Duluth, MN 55811

10:00 AM – Noon

August 17


MnDOT District 6 Office
2900 48th Street NW
Rochester, MN 55901

10:00 AM – Noon

August 19


MnDOT Waters Edge Building
1500 W. County Road B-2
Roseville, MN 55113

1:00 PM – 3:00 PM

August  20


Kandiyohi County Health and Human Services Building,
220 23rd Street NE
Willmar, MN 56201

10:00 AM – Noon


  • 2013 Awards

    Funding was awarded for projects in Waconia, Minneapolis, Olmsted County, and Le Sueur.

    Communities must document job growth or retention and the ability to complete the projects, including showing they have additional sources of funding and can meet environmental requirements and other planning standards.

    The following projects received funding:

    City of Waconia - $4.5 million
    This project will upgrade 1.4 miles of two-lane road to an urban four-lane divided road with multiple intersections along Hwy 5 through the heart of Waconia. The project supports job creation for many employers in the area; Ridgeview Medical, for example, is planning an expansion in 2015 that will add 130 new jobs and an additional expansion is planned in 8-10 years that will add another 130 jobs. The improvement project will also address safety concerns by widening and reducing the number of accesses to and from Hwy 5—thus improving emergency vehicle response times to the hospital.

    City of Minneapolis - $6.8 million
    This project will construct a new westbound I-94 off ramp that will re-orient traffic entering downtown Minneapolis from 5th street to 7th St. The existing I-94 5th street off ramp will be repurposed to provide a multi-modal connection between the Cedar Riverside neighborhood and the downtown core. The project serves the densest concentration of jobs in the state—the downtown core of Minneapolis employs 133,000 people and is projected to increase significantly with additional downtown development (including the new stadium). Other major employers that will benefit from this project include: Hennepin County Medical Center, the University of Minnesota, Fairview Hospital, and Augsburg College.

    Olmsted County - $2.2 million
    This project will reconstruct an interchange at Hwy 63 and County Hwy 16, improving access to the Rochester International Airport and surrounding industrial parks. The Rochester International Airport generates $161.5 million in economic impact in the region and employs more than 270 people and serves more than 320,000 commercial airline passengers per year. The improvement will support a new terminal currently being planned for the airport. The Mayo Clinic expansion will also have a direct impact on this interchange since the expansion is projected to add 20,000 employees and double the number of patients at the clinic.

    City of Le Sueur - $2.1 million
    This project involves construction of a Reduced Conflict Intersection at Hwy 169 and County Hwy 28. Construction will also involve associated access closures and supporting streets to address the expansion needs of Cambria, a key employer in the area, as well as providing better and safer access to a planned business park. Hwy 169 is a principal arterial roadway that provides critical connections between southwestern Minnesota and the Twin Cities. This TED proposal is unique, in that it also includes the conveyance of land containing an existing rest area to Cambria to make room for the planned economic expansion, which was authorized by the 2013 Legislature. In addition to the transportation improvements, the project would involve construction of a new rest area to replace the existing rest area.

  • 2012 Awards

    Fourteen highway improvement and infrastructure projects in Minnesota received approval for $25.5 million in funding.

    Funding was awarded for projects in Windom, Mille Lacs County, International Falls, Rice County, Mankato, Delano, Ramsey County, Eden Prairie, Maplewood, St. Louis Park, Rochester, Benton County, Jackson and Minnetonka. View the scoring summary of proposed projects.

    Communities must document job growth or retention and the ability to complete the projects, including showing they have additional sources of funding and can meet environmental requirements and other planning standards.

    The following projects received funding:

    City of Windom - $1.1 million
    The funding will be used for improvements on Highway 71 and an access road for the first phase of the North Windom Industrial Park. The project will allow Toro and General Sheet Metal Works, a Toro supplier, to retain more than 700 jobs and add another 70 jobs over the next five years. Total project cost: $1.9 million.

    Mille Lacs County - $300,000
    The county plans to improve 2 miles of roadway that will allow trucks to carry heavier loads from Hawkins Sawmill, a regional mill that processes hardwood for the cabinet and home-building industries. Total project cost: $625,000.

    City of International Falls - $656,667
    Plans call for installation of utilities and a rail spur to the multi-modal district, which is located adjacent to the busiest rail port of entry in North America. The district is ideal for warehousing, distribution, assembly, processing and light manufacturing. Mariner Farms LLC signed a development agreement with the International Falls EDA and will be the first tenant. It is projected the district will create 50 jobs within five years. Total project cost: $957,400.

    Rice County - $1 million
    The county will reconstruct 2.1 miles of County Road 76/Acorn Trail to improve access to developable properties north of the Faribault city limits along Interstate 35. The project will also improve access to the Northern Industrial Park in Faribault. Officials estimate that 150 jobs will be created in the first two years and 300 jobs within five years after the project is completed. Total project cost: $2.9 million.

    City of Mankato$969,200
    The funding will pay for road and utility improvements in Eastwood Energy Industrial Park. After the improvements, about 160 jobs are expected to be created within two years and about 470 jobs within five years. Total project cost: $1.4 million.

    City of Delano - $1.6 million
    Highway infrastructure improvements are planned in support of a new industrial park. Randy's Environmental Services will add 30 jobs immediately. Other businesses will create an additional 100 to 150 jobs within two years and 400 to 500 jobs within five years. Total project cost: $6.1 million.

    Ramsey County - $1 million
    Plans call for additional turning lanes and other upgrades to address traffic congestion along Lexington Avenue adjacent to Interstate 694. The improvements will benefit Boston Scientific, Land O Lakes, Smith's Medical, IntriCon Corp. and other high-tech companies in the area. Total project cost: $2.6 million.

    City of Eden Prairie$7 million
    Shady Oak Road (County Road 61) will be widened and reconstructed to improve access to the Golden Triangle Area and City West business parks. The two business parks support more than 20,000 employees and 600 businesses. Total project cost: $31.7 million.

    City of Maplewood - $1 million
    Highway 36 and English Street will offer increased safety and mobility with the addition of an interchange in an area that is underdeveloped and has the potential for employment and tax base growth, especially after the St. Croix River bridge is built. Total project cost: $23 million.

    City of St. Louis Park - $3 million
    A diamond interchange and roundabouts are planned at Highway 7 and Louisiana Avenue. The project will be built in the area of Methodist Hospital, which recently added 1,900 jobs after a building expansion. Total project cost: $25 million.

    City of Minnetonka - $1.6 million
    The city is planning a westbound on-ramp for the Interstate 394/Ridgedale Drive interchange. The area has 20,000 jobs, with another 700 jobs expected to be created within two years and 900 jobs in five years. Total project cost: $8 million.

    City of Rochester - $1.5 million
    Improvements are planned at Highway 14 and 40 th Avenue SE to enable Reichel Foods, a food processing and distribution business, to expand operations in the area. The business employs 375 people and plans to add 50 jobs within two years. Total project cost: $2.3 million.

    Benton County - $2.9 million
    The project calls for interchange improvements at Highways 10 and 3, adjacent to two industrial parks where more than 1,000 people work and two vacant manufacturing buildings are available for other businesses. Total project cost: $4.9 million.

    City of Jackson - $1.8 million
    A diamond interchange is proposed at Interstate 90 and Highway 34 in an area that is expected to experience significant industrial and retail development. This project is tentatively approved, but a re-scoping of the project involving the city, MnDOT, and Federal Highway Administration may result in a lower project award. An additional 400 to 600 people are expected to be employed in the area by 2020.

  • 2011 Awards

    Eleven highway improvement and infrastructure projects in Minnesota received preliminary approval for nearly $33 million in funding.

    Preliminary funding was designated for projects in Aitkin County, Bloomington, Hennepin County, Marshall, Perham, St. Charles, St. Cloud, Stewartville, Two Harbors, Worthington and Zumbrota.

    The funding is contingent on communities providing evidence that they can complete the projects, including documenting that they have other sources of funding and can meet environmental requirements and other planning standards.

    The following projects received preliminary funding approval:

    Aitkin County - $138,750
    The funding will upgrade one mile of Highway 5 so that it can handle vehicles with a load capacity of 10 tons per axle. The improvement will enable American Peat Technology to increase production. Total project cost: $555,000.

    City of Bloomington - $4.2 million
    The city plans to improve the interchange at Interstate 494 and 34 th Avenue, which will increase traffic capacity and help reduce accidents. The project also will improve access for local corporate offices, the Minneapolis-St. Paul International Airport and the Mall of America. Total project cost: $6 million.

    Hennepin County - $9.4 million
    Officials are planning a new entrance ramp to northbound Interstate 35W at Fourth Street South, as well as an auxiliary lane on northbound 35W from University Avenue SE to Stinson Boulevard. The project will reduce congestion in an area with a high concentration of jobs. It will also create a more direct route from downtown Minneapolis to northbound 35W. Total project cost: $13.5 million.

    City of Marshall - $575,000
    The city plans to install turning lanes and a bypass lane on Highway 68 near the proposed Lake Road Industrial Park. Officials are negotiating with businesses that may locate in the park, creating about 100 jobs. Total project cost: $822,500.

    City of Perham - $4 million
    The funding will pay for construction of an interchange for an existing overpass at Highways 10 and 34. The project will provide better access to Barrel O Fun, Tuffy's Pet Foods, Kenny's Candies and a new hospital. The project will result in the creation of 240 jobs. Total project cost: $6.7 million.

    City of St. Charles - $570,000
    A new 20-acre industrial park, adjacent to Interstate 90, off Highway 74, is planned. Funding will pay for roads, turning lanes and utilities in the park. Active Tool and Die and Robotics Redefined/Excel Manufacturing have expressed interest in moving to the park and adding a total of 45 jobs. The project will help the community recover from the loss of its largest employer, North Star Foods, to a fire in 2009. Total project cost: $2.6 million.

    City of St. Cloud - $8 million
    An interchange is planned at Highway 15 and 33 rd Street. Adjacent land is a high growth area where several businesses have expressed an interest in locating. The interchange will increase safety in St. Cloud by reducing traffic that must travel a five-mile circuitous route through one of the city's busiest intersections. Total project cost: $12 million.

    City of Stewartville - $400,000
    A new road and utilities are planned within an existing business park, located at Highway 63 near Interstate 90 and south of the Rochester International Airport. The city is negotiating with Federal Express and a refrigeration and distribution company to place facilities in the park. Total project cost: $1.6 million.

    City of Two Harbors - $1 million
    The city plans to close six accesses to Highway 61 and add an intersection to the east side of Highway 61 at Highway 26. Highway 26 will be extended to provide safer access to North Shore Manufacturing and other area businesses. North Shore Manufacturing plans to add 50 jobs in the next five years. Total project cost: $1.7 million.

    City of Worthington - $3.3 million
    The project, just south of Interstate 90, will extend a four-lane divided section of Highway 59 by another 1,200 feet to the north. Turning lanes and other small projects are also planned to improve access to a new 750-acre industrial/commercial park and a bioscience park. Bedford Technologies is planning to expand in the industrial park. The park is expected to create 440 jobs in the next five years. Total project cost: $4.7 million.

    City of Zumbrota - $1.15 million
    The project will improve existing roads and upgrade and add utilities along Highway 68. The improvements will allow safer access to Highway 52 for VersaCold a cold-storage business and allow for future industrial development in the area. VersaCold is planning a 75,000-square-foot expansion that will add 25 jobs. Total project cost: $2.3 million.


For More Information 
Contact Jeremy LaCroix, 651-259-7457.