Funding sought for development of new industrial park


The city of Pipestone plans to apply for a federal grant to expand infrastructure along 11th Street Northeast, which is shown here, for the development of an industrial park. Looking into the expansion of the city’s industrial park was included in the one year plan the council approved earlier this year. Photo by Kyle Kuphal

The city of Pipestone is seeking $2.5 million in federal funding to expand the existing infrastructure, including the street, water lines and sewer lines, along 11th Street Northeast for the development of an industrial park.

Pipestone City Council members during their Aug. 18 meeting approved a resolution supporting the submission of an application for the U.S. Economic Development Administration Fiscal Year 2025 Disaster Supplemental Grant Program. According to information presented during a previous discussion of the grant opportunity, the program makes approximately $1.45 billion available to support economic recovery activities in areas that received major disaster declarations due to hurricanes, wildfires, severe storms and flooding, tornadoes, and other natural disasters in 2023 and 2024. Pipestone is eligible due to flooding that occurred during that time period.

Information from the U.S. Economic Development Administration that was presented during previous discussions indicates that the funding is not only available to help rebuild, but to transform local economies after disasters, “with an emphasis on improving communities’ economic outcomes and resilience to future disasters.”

The resolution approved by the City Council indicates that the city is committed to providing a local funding match for the proposed project, which could come from local funds, in-kind contributions or other eligible sources allowed by the grant program. City Administrator Deb Nelson said the city would have to match 20 percent of the project cost, which would be about $510,000.

Nelson said the city’s intent is to submit an application by the end of September and she anticipates learning if it will receive funding within six months. Investigating an expansion of the city’s industrial park was included in the city’s one-year plan that the Council approved early this year.

In other business the Council:
•Accepted a low bid of $856,946.15 from Hulstein Excavating for the Safe Routes to School project that will add a sidewalk along Fourth Street Northwest from Hiawatha Avenue North to Eighth Avenue Northwest, and along Eighth Avenue Northwest from Second Street Northwest to 68th Avenue. The city of Pipestone was awarded an $806,920 SRTS grant last year for the project. City Engineer Travis Winter said construction could begin this fall or in the spring.
•Approved Dylan Spaethe as a new firefighter for the Pipestone Fire Department.