ST. PAUL — The City of Sleepy Eye is one of five rural Minnesota cities awarded Minnesota Department of Employment and Economic Development (DEED) grants for infrastructure projects Thursday.

Sleepy Eye was awarded $985,587 to assist with construction of streets, water, sanitary sewer, storm sewer and a railroad crossing near the Snow Farm industrial, business and residential development at the east edge of town.

The city estimates 10 new jobs would be created over five years by the project, in addition to many new employers, the new rail crossing will allow trucks to travel over the railroad tracks at the east end of town rather than cross in the center of town.

The 2020 reroute project is also designed to reduce truck traffic in residential and retail areas. The 12th Avenue North East railroad crossing would connect with an east-west road (St. Mary’s Street) that would extend west to State Highway 4.

Other DEED grant recipients include a $1,907,500 grant to Paynesville to assist in separating and treating wastewater from an Associated Milk Producers Inc. (AMPI) expansion that will sent more wastewater to the city’s wastewater treatment facility.

The expansion will increase processing from 2.4 to 3 million pounds of milk a day. The project will retain 82 full-time employees and add an additional three employees.

Hutchinson will receive $353,563 to assist in creating a new city street in place of a private road in poor condition.

Uponor North America, an Apple Valley-based firm that makes cross-linked polyethylene pipe and related products, is expanding its Hutchinson operations, committing $12.4 million to buy and remodel a 237,000 square foot building. One hundred new jobs will be created in five years, according to the application.

Kenyon will receive $672,096 to assist with construction of streets, water, sewer and electric utilities for a new business park expected to create 60 jobs in five years.

Perham was awarded $1,396.750 to assist with construction of streets, water and sewer to expand the Perham Industrial Park. A proposed development will allow expansion of Tuffy’s Pet Foods warehouse and a $60 million, 175,000 square foot canned pet food plant that could create 100 jobs in five years.

“Investments in public infrastructure are critical to the economic success of Greater Minnesota communities,” Gov. Tim Walz said. “These grants will help spur economic development and create quality jobs.”

DEED Commissioner Steve Grove said the grants help build roads, install public utilities and increase the local tax base.

Under the program, DEED awards 50 percent of eligible capital costs for qualifying public infrastructure projects. The projects include wastewater collection and treatment, drinking water, storm sewers and more.

For more information, visit the DEED website: http://mn.gov/deed/

(Fritz Busch can be emailed at fbusch@nujournal.com).