ST. PAUL –The Minnesota Department of Employment and Economic Development (DEED) has awarded 12 grants totaling about $5.1 million under the American Recovery and Reinvestment Act (ARRA) to help pay for improvements to housing, commercial property and infrastructure in Greater Minnesota.

The grants were awarded under the Small Cities Development Program (SCDP) through U.S. Department of Housing and Urban Development ARRA funds designed to stimulate the U.S. economy.

“These stimulus dollars allowed us to put more resources into the Small Cities Development Programs, and Minnesota communities responded enthusiastically,” said DEED Commissioner Dan McElroy. “These job-producing projects will promote economic activity and enable these communities to have solid infrastructure and housing stock.”

The program, which is administered by DEED, makes grants available to cities and townships with populations under 50,000 and counties with populations under 200,000.

Projects must meet one of three federal objectives:

· Benefit low- to moderate-income people.

· Eliminate slum and blight conditions.

· Eliminate an urgent threat to public safety.

Funding is awarded to eligible communities for rehabilitating existing housing stock for low- to moderate-income residents; public facility projects including sewer and wastewater treatment improvements; and comprehensive projects that address a community development need that must be carried out in a coordinated manner addressing such activities as commercial revitalization, housing rehabilitation and/or public facility need.

The 2009 SCDP-ARRA grant recipients are:

Northwest

Bejou, $157,214 - Improve the city's water supply and distribution system to benefit 44 households.

Perley, $455,000 - Improvements to the city's wastewater collection and treatment systems to benefit 60 households.

North Central

Grand Rapids, $498,375 - Rehabilitate five commercial buildings and convert an old hospital into a 36-unit rental housing complex that will be known as the "Grand Plaza”.

Remer, $391,680 - Improvements to the City's water storage and supply system to benefit 100 households.

Northeast

Nashwauk, $632,875 -Rehabilitate 18 owner-occupied houses and four commercial buildings to benefit the cities of Nashwauk, Keewatin, and Calumet.

Central

Lowry, $600,000 -Construct a new wastewater treatment pond and replace wastewater collection lines.

Paynesville, $207,280 - Rehabilitate 11 owner-occupied houses.

East Central

Mora, $425,000 -Finance construction of a building that will provide 24 senior rental housing units.

Southwest

Ivanhoe, $616,534 - Rehabilitate 20 owner-occupied houses and 10 commercial buildings to benefit the cities of Ivanhoe, Ghent, and Minneota.

Seaforth, $499,000 - Improvements to the city's water supply and distribution system.

Worthington, $250,000 -Construct 24 units of rental housing.

South Central

Mankato, $350,000 -Rehabilitate a 101-unit affordable income rental building called Orness Plaza.

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