2024 TED Solicitation

Our Transportation Economic Development (TED) program is a competitive funding program designed to help generate economic benefits through investment in transportation infrastructure. Under this solicitation, we have $4.445 million to help fund construction projects in 2025-2027. TED program funds can only be used on trunk highway eligible projects.

Maximum Award

The maximum award provided to any project is up to 70% of the total transportation infrastructure cost or the state’s maximum allowable share as determined by our cost participation policy or Minnesota State Statute 174.12 Subd. 7, whichever is less.

Eligibility

Eligible applicants are any governmental entity as defined by state law, including tribes. Non-state aid cities are strongly encouraged to work with their county in developing the application.

Only eligible applicants in Greater Minnesota, defined as any eligible entity located outside the 7 county metro area, will be able apply for this round.

Private developers who intend to fully cover the required match of a project may discuss the proposed project with their MnDOT district to discuss potential application options.

Projects

Proposed project must have a trunk highway purpose. It must improve, enhance or modify a state trunk highway or highway right of way. Projects may do more than improve the trunk highway, but this program can fund work only on the trunk highway and trunk highway right of way as specified in our Cost Participation Policy for Cooperative Construction Agreements.

New or modified interchanges on interstates

If you want to submit an application for new or modified interchanges on interstates, you should consult with the Federal Highway Administration Minnesota Division before you submit a TED application.

Measurable economic benefits

This program is for improvements that lead to measurable economic benefits. Your project must contribute to job creation, job retention or another measurable economic benefit. Housing development cannot be the primary beneficiary of the project.

Match requirement

Applicants are required to identify other public and/or private funding sources that will be leveraged to contribute to the transportation construction cost of the proposed project. The TED program will provide funding for up to 70 percent of the total transportation infrastructure cost of the project or the state’s maximum allowable share as determined by MnDOT’s cost participation policy or MN State Statute 174.12 Subd. 7, whichever is less.

Applicants are strongly encouraged to consult with their MnDOT district office in deriving appropriate cost share estimates.

Preparing your application

Applicants are strongly encouraged to submit an expression of interest by July 8th, 2024.

This short form does not commit an applicant to submitting a full funding application but is intended to initiate a conversation with MnDOT program and district staff about potential project ideas. MnDOT district staff will follow-up with all expressions of interest to discuss the potential project in detail and assist applicants with the process.

Once we receive your expression of interest, we will work with you to review the project and collect all necessary information through our application which will be due by 5 p.m. on September 9, 2024.

We encourage you to also work with local port authorities, economic development authorities, housing and redevelopment authorities and other agencies that specialize in economic development to prepare the following document.

Required attachments:

An economic impact spreadsheet Economic impact spreadsheet template (Excel)
A resolution indicating the governing body’s approval of this application and commitment of the match funding identified in the application Model resolution language (Word)

A map showing the project location and the locations of affected businesses
A project layout or conceptual drawing

Optional attachments:

Letters of commitment from the new or expanding businesses
Evidence of community support
Documentation indicating project is consistent with all applicable comprehensive plans, zoning ordinances, etc.

How to Submit an Application

Applications must be submitted electronically to Peter Olson at peter.olson@state.mn.us and Nicole Westadt

Nicole.Westadt@state.mn.us. Applicants will receive confirmation of their submission.

Applications must be received by 5:00 p.m. on September 9th, 2024.

Solicitation Timeline

The tentative schedule will be as follows:

July 8th, 2024: Expressions of interest due
July-September: Applicants work with their MnDOT district
September 9th, 2024: Applications due to MnDOT
December 2024: Projects selected and approved

Project Scoring and Selection Process

The process to select TED projects in 2024 consists of the following 7 step process:

Step 1: Submit an expression of interest form

Interested applicants are strongly encouraged to submit an expression of interest

Step 2: Project discussion and exploration

MnDOT district staff will follow up with the applicant to discuss the project, including eligibility, coordination, engineering and funding details of the project.

Step 3: Submit a full application

Interested applicants must then submit a full application, including a resolution from the governing body of the applicant/sponsor supporting the project and committing any necessary funding.

Step 4: Preliminary Scoring

Eligible projects are then sent to staff in the offices of Transportation System Management, Traffic Engineering, and Project Management & Technical Support for review and comment. Metropolitan Planning Organizations and/or Regional Development Organizations may also be asked for feedback in some instances.

Based on the information in the expression of interest and discussions with district and DEED staff and any other feedback during the review process, TED program staff analyze the applications and assign a preliminary score using the criteria described later in this document.

Step 5: Selection Committee Review and Initial Recommendation

The preliminary scores are reviewed by a selection committee, who may adjust or modify the scores as indicated later in this document based on their professional judgement and insights. Projects must receive at least 50 points to be eligible for funding. The committee makes an initial funding recommendation.

Step 6: TPIC Review

The selection committee funding recommendations are presented to MnDOT’s Transportation Program Investment Committee (TPIC). TPIC then makes a recommendation to the MnDOT and DEED Commissioners.

Step 7: MnDOT and DEED Commissioner Approval

Both MnDOT and DEED commissioners review and approve the final selection decisions. After which, applicants are notified of the decisions and final scores are posted.

Greater Minnesota Scoring Criteria

TED applications from Greater Minnesota will be scored using the following criteria.

Criteria	Points Available
Economic Benefits	40
Transportation Benefits	35
% non-MnDOT Funding	5
Project Risk Assessment	20

Additional points may be awarded for project applications that include contributions from non-public sources or that advance the geographic distribution objectives in Minnesota State Statute 174.12. However, the total score may not exceed 100 points.

Projects must receive at least 50 points to be eligible for funding.

Economic Benefits

For Greater Minnesota applications, a total of 40 points are available for economic benefits based on the following factors.

Criteria	Points Available	Basis
Job creation/retention per $1 million of project cost	20	Based on the difference between the 5 year job estimate with the project and the 5 year job estimate without the project divided by the cost of the project in millions
Income creation/ retention	20	Based on the difference between the 5 year estimate of wage income with the project and the 5 year estimate wage income without the project

Impact to Targeted Labor/Industry

Provided the total economic benefit score does not exceed 40 points, the selection committee may assign up to 5 points if the jobs created/retained are likely to benefit a low-income community, tribal community, community of color or people with disabilities

Selection Committee Adjustments

The selection committee may adjust scores for overly speculative claims or overly conservative estimates.

Transportation Benefits

For Greater Minnesota applications, a total of 35 points are available for transportation benefits.

Transportation Scoring Criteria

Criteria	Points Available	Basis
Benefit-cost ratio	10	Transportation benefit-cost analysis based on crash information supplied by the applicant as well as MnDOT staff analysis following MnDOT’s standard procedure.
Plan consistency and need	25	Based on the need for the project, plan consistency and improvements for freight and multimodal transportation (see factors below)

Factors considered in assigning points for “plan consistency and need”:

Addresses a sustained crash location and/or a safety issue identified in a district or county safety plan
Score from the Greater Minnesota Mobility Study
Addresses a pavement or bridge condition need (conversely, points may be lowered for projects that proposed work on assets with significant remaining service life)
Improves access to a port, airport or intermodal facility • Heavy commercial truck traffic
Removes a geometric barrier or avoids future load restrictions on an Oversize/Overweight route

How To Get More Information

Questions regarding this solicitation for TED may be directed to Peter Olson or Nicole Westadt.