Economic development program grant clarifications passes House

For host communities in the Twin Cities metropolitan area, new changes could clarify the grant application process for compensation of lost economic development. 

HF2514, sponsored by Rep. Roz Peterson (R-Lakeville), would modify definitions within the Host Community Economic Development grant program. A “host community” is a city within the Twin Cities metropolitan area that is a site of disposal of unprocessed mixed solid waste.

Rep. Roz Peterson

Clarifications to the program in the bill specify that “capital costs” are defined as expenditures for public land acquisition, of both land and buildings, for the betterment of the public. An “eligible project” is one that will generate economic development within five years; and “economic development” means development or redevelopment that results in job creation, an increase in tax base, attraction of private investments, facilitating improvements needed to public infrastructure and other transportation-related improvements, or other objective criteria established by the commissioner.

“This bill makes it easier for communities to assemble grant applications and easier for them to be approved,” Rep. Joe Atkins (DFL-Inver Grove Heights) said.

Passed 93-37 by the House Thursday, the bill now goes to the Senate where Sen. James Metzen (DFL-South St. Paul) is the sponsor.

Rep. Melissa Hortman (DFL-Brooklyn Park) expressed concerns whether language in the bill regarding cost effectiveness should be deleted.

“Why are we changing a statute that applies to all investments in the future?” said Hortman, who argued the deletion effectively changes the standard for the entire state.

“It is written so narrow that only two host communities of the 19 are able to take advantage of the program,” said Rep. Kim Norton (DFL-Rochester). “There are many other host communities that could benefit from the economic development this bill offers.”