Power Plant Closures: 4 Impacted Minnesota Communities Get Help

ST. PAUL, MN — Four Minnesota communities affected by power plant closures are getting a major financial boost. The state announced Monday it will award more than $2.7 million in grants to support new development projects aimed at helping local economies transition and grow.

"DEED's Energy Transition Office supports Minnesota communities undergoing or preparing for power plant closures in their efforts to maintain vitality and diversify their economies," said DEED Commissioner Matt Varilek in a news release.

"Communities can face significant uncertainty when a power plant closes. Through these grants, we’re partnering with local officials to help ease that transition."

Power Plants Associated with the Four Communities:

• Granite City Power Generation Plant (Benton County):
  • Status: Decommissioned in 2009 and demolished in 2022.
• Boswell Energy Center (Cohasset):
  • Status: Units 1 and 2 were retired in December 2018. Unit 3 remains operational, while Unit 4 is scheduled to cease coal operations by 2030, the Star Tribune reported.
• Allen S. King Plant (Oak Park Heights)
  • Status: Scheduled to retire in 2028 as part of Xcel Energy's transition plan.
• Hoot Lake Plant (Fergus Falls)
  • Status: Retired on May 31, 2021, after nearly 100 years of operation.

Benton County: $1 million to help develop the Beltline Corridor Project, connecting two major highways and supporting new residential, commercial, and industrial growth.

"We are beyond grateful to receive a Community Energy Transition Grant," said Benton County Commissioner Jared Gapinski. "This award supports a wonderful opportunity to promote new economic development opportunities in our county."

City of Cohasset: $750,000 for the Blackwater Banks project, which will transform an abandoned lumber mill into a mixed-use downtown featuring housing, a hotel, a sports complex, retail, and restaurants.

"This vital initiative will become a cornerstone of our community," said Cohasset Mayor Josh Casper. "It promises to propel growth in recreation, tourism, housing, and small business."

City of Oak Park Heights: $374,800 to advance the design of a new water treatment facility that will remove PFAS contaminants from city wells.

"We are honored to receive this grant funding," said Oak Park Heights Mayor Mary McComber. "It will allow the city to continue ensuring the safety and sustainability of our water resources."

Otter Tail County: $650,000 to acquire and begin redeveloping the West Ridge Mall in Fergus Falls, protecting neighboring businesses that rely on the mall’s fire suppression system.

"This project represents a significant opportunity to revitalize the area and drive economic growth," said Otter Tail County Commissioner Sean Sullivan.