Draz: Economic development funding for southeast Minnesota

Friends and neighbors —

A big issue in our area is the future of Red Wing’s Prairie Island nuclear power plant. Red Wing relies heavily on the tax revenue from the plant, so when the plant eventually closes the city could face budget challenges. Though the closure isn’t anticipated until the early 2050s, officials are planning ahead. Red Wing was recently awarded a $1 million grant from the Minnesota Department of Employment and Economic Development to create a transition plan that will help the city adjust to life after the plant’s retirement.   

This plan includes strategies for economic development, workforce retraining, and infrastructure improvements. Part of the planning will focus on revenue diversification – finding new ways to generate income without placing an excessive burden on property taxpayers. This might involve attracting new businesses to the area or investing in local industries that can help fill the financial gap left by the plant’s closure. The grant also provides for workforce development and retraining programs to help employees currently working at the plant, and others in the community, acquire new skills and find new opportunities. 

The grant was part of a round $5.21 million in funding to support economic development in eligible Minnesota communities with power plants that are scheduled to close or have recently closed. 

In addition to Red Wing’s grant, Zumbrota received nearly $600,000 from the Department of Employment and Economic Development (DEED) to rehabilitate 21 owner-occupied homes to increase the quality of dwellings suited for individual or family occupancy. These projects could include exterior repairs and replacement projects, insulation, HVAC, electrical, plumbing, lead paint remediation or accessibility modifications. 

The funding is part of the Small Cities Development Program, which helps towns and small cities in Greater Minnesota improve their housing stock and support local businesses. The program, funded by the U.S. Department of Housing and Urban Development, is aimed at communities with fewer than 50,000 residents. This year, 88% of SCDP grant recipients serve low and moderate income people.  

Contact me 

I love hearing your feedback! If you ever have any comments, questions, or concerns about what we are working on here at the Capitol, please do not hesitate to contact me. You can reach me by phone at 651-296-5612 or email me at sen.steve.drazkowski@mnsenate.gov 

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It is a privilege to serve you. 

Draz