Upper Minnesota Valley Regional Development Commission

The cities of Granite Falls and Clarkfield announced that they have received Small Cities Development Program (SCDP) awards from the Minnesota Department of Employment and Economic Development. The SCDP award is for $625,888 to Granite Falls and $1,107,430 to Clarkfield.

The grant also provides opportunities for 11 homes, seven single-family rental homes and six businesses in the Granite Falls community to use program funds, in combination with owner investments, to make improvements. In Clarkfield, 15 owner occupied homes, five businesses, and public infrastructure will be able to use the funds.

The award was made possible through the grant writing services provided by the Upper Minnesota Valley Regional Development Commission (UMVRDC) who will also assist the cities in administering the grant along with Prairie Five CAC. The summer will be needed to complete an environmental review to ensure compliance with state and federal regulations, and to secure the contract with the state of Minnesota.

This fall, a public meeting will be held for those interested in utilizing these funds. At that time, the application process will be explained. For more information on this project, contact Laura Ostlie from the UMVRDC at 320-289-1981 x102 or laura@umvrdc.org.

Some highlights: Homeowner Rehabili-tation grants Homeowners must have a home in the primary target area. There is a secondary target area identified that will be eligible if there are still funds available after a time yet to be determined. Homeowners must be income eligible.

Granite Falls

There is a maximum of 11 grants available. The maximum grant amount will be $18,750, forgiven after 7 years. The homeowner will need to come up with an additional $6,250 match, for a total average project cost of $25,000.

Clarkfield

There is a maximum of 15 grants available. The average grant amount will be $18,750, forgiven after 7 years. The homeowner will need to come up with an additional $6,250 match, for a total average project cost of $25,000 Rental Rehabilitation grants The rental single-family home must be in the primary target area.

There is a secondary target area identified that will be eligible if there are still funds available after a time yet to be determined. Tenants must be income eligible. Granite Falls (only) There is a maximum of 7 grants available. The maximum grant amount will be $14,000, forgiven after 5 years. The homeowner will need to come up with an additional $6,000 match, for a total average project cost of $20,000.

Commercial Rehabili-tation grants

The commercial business must be in the primary target area which is the downtown area. There is no secondary target area. The building cannot be vacant. If it is currently vacant, there needs to be a plan to have a business move in after rehab. Granite Falls There is a maximum of 6 grants available. The maximum grant amount will be $40,000, forgiven after 5 years. The homeowner will need to come up with an additional $10,000 match, for a total average project cost of $50,000.

Clarkfield

There is a maximum of 5 grants available. The average grant amount will be $32,000 and would be forgiven over 7 years. With a $32,000 grant, a commercial owner would also have approximately $4,500 in an installment loan with a 1% interest rate spread out over 7 years along with the additional project costs.

Public Infrastructure grant Clarkfield (only) SCDP grant funds leveraged with approximately $23 million in other funding sources will provide the necessary funding to update public facilities in Clarkfield, specifically the water tower.