The Crookston City Council received a presentation on Monday regarding the Minnesota Rail Service Improvement (MRSI) at the Industrial Park.
Minnesota Department of Employment and Economic Development (DEED) Regional Business Development Manager Chet Bodin and Crookston EDA Director Karie Kirschbaum proposed that the city donate 15 acres of land at Industrial Park to expand the rail spur at that location. “We’re proposing that the city donate 15 acres in the case that we receive a grant from the Department of Transportation (MnDOT),” said Bodin, “To extend the railroad spur in the Industrial Park surrounding the Ag Innovation Campus.”
The Crookston EDA has already applied for a grant through MnDot in the amount of $1.765 million. The funding would pay for the earthwork, installation of the rail spur, and rail switch equipment. The proposal to the city includes an additional 10 acres of private storage space for private storage development, which stores agricultural products. “There are approximately 90 acres surrounding the rail spur,” said Bodin, “So having that capacity in the rail park will help the park develop business because it offers businesses who need railroad shipment options.”
MnDOT has $18 million in the MSRI grant program. Crookston EDA Director Karie Kirschbaum expressed that this is a competitive grant, and only $9 million of that funding is left to disburse. “We feel very confident due to the economic impact of this railroad spur coming in that we will be awarded funding,” said Kirschbaum, “My department initiates a lot of these projects and communicates with different business owners, and gets hold a lot of meetings with entities to put packages together that will make sense for the community of Crookston, and city council to make a decision.”
Kirschbaum also stated that this would benefit the city due to infrastructure investments that would lead to a tax space increase, which would ultimately decrease taxes for Crookston residents. “That’s the biggest thing for me after attending the Truth in Taxation hearing,” said Kirschbaum, “Especially from my department, it’s like what can we do to help them get lower utility bills, and whatever we can do to lower their bills and increase our tax space.” Another benefit of the railroad spur that was discussed was the opportunity for local farmers to bring their products and load them on a rail car. One rail car is equivalent to four semi-truck loads. This may be deemed beneficial due to the region’s recent trucking and shipping shortages.
The council ultimately found consensus regarding installing the railroad spur and accepting grant funding. After the presentation, the council held a discussion and instructed City Administrator Corky Reynolds to begin drafting a Memorandum of Understanding with Minnesota Northern Railway. “A railway would allow Minnesota Northern to transfer various commodities,” said Reynolds, “From here to Duluth, for shipping overseas. This initial phase in the MSRI grant would allow Minnesota Northern to construct that spur.”
The next City Council meeting will take place on Monday, February 12, and will look to review the MSRI grant Memorandum of Understanding.
