Stimulus dollars making impact in area

As federal stimulus programs have churned out millions of dollars during the past several months, local units of government in the Brainerd lakes area have been working to find projects that will qualify.

Some have been successful, getting money for airports, wastewater and road projects. Others have not, either because of the time and cost involved submitting applications for stimulus money or because local projects do not meet federal requirements.

One of the biggest gains for Brainerd and Baxter is a discount on interest rates for the wastewater expansion project shared by the two cities.

Tom Phelps, Brainerd Public Utilities superintendent, said the discount, through Build America Bonds, will result in about $2 million saved on the project.

Brainerd also is considering seeking federal stimulus money for energy savings projects, but those programs have not yet been offered by the federal government.

In March the Brainerd Housing and Redevelopment Authority will receive $322,479 for rehabilitation of the 160-unit North Star Apartments, the 25-unit Valley Trail development and 16 scattered units of houses or duplexes.

Brainerd's College Drive reconstruction project also is getting about $186,000 in money through stimulus programs, part of an overall $2,234,000 in federal aid already received for the project.

Other city street projects do not qualify, however, as they needed to be collector roads or greater or were not shovel ready when the stimulus funds were released.

"We had no projects that met that criteria so we did not solicit for road stimulus projects," City Engineer Jeff Hulsether said.

In Baxter, Finance Director Jeremy Vacinek said outside of the wastewater project with Brainerd, his city has had no projects that were eligible for stimulus dollars.

A challenge, Vacinek said, is that though a project might be eligible for stimulus dollars cities need to be aware that local matches may be needed and projects still need to be assessed to benefiting property owners.

"We're sensitive about that in the current economic conditions," Vacinek said. "It's kind of a double-edged sword."

A silver lining may be that groups like Region Five that receive stimulus funds may free up other funds for use on local projects, Vacinek said.

Mike Carlson, accounting/finance manager in the Crow Wing County auditor's office, said the county hasn't itemized the dollars but the county didn't receive a lot of stimulus money. Carlson said the main county department receiving the benefits of the stimulus spending was human services.

Carlson said the state pulled its money to balance its biennium saying the county would have federal stimulus dollars to make up the difference. So, Carlson said, the stimulus dollars at the county level didn't amount to new funds.

Administrator Tim Houle, reached while he was out of his office attending a conference, estimated the stimulus dollars ranged from $100,000 to $300,000 for the county.

Houle said the state passed through the stimulus dollars for human services and then reduced its contribution.

"We had submitted two or three road projects and they did not get funded," Houle said.

The road projects had to be shovel-ready. Houle said human services is so heavily funded by the state and federal governments, the county mainly acts as an arm of the state to qualify people for benefits.

The county is currently soliciting for COPs grant funding.

While Crow Wing County did not receive a lot of stimulus money, Houle said with nonprofits and other organizations eligible that isn't to say the county didn't benefit.

The Brainerd Lakes Regional Airport received a $1 million stimulus grant, which made it possible to rehabilitate a runway apron - described as broken and cracked pavement that dated back to the early 1970s.

Congressman Jim Oberstar's office, reported in May, that the state received $130 million to help make unemployment payments to laid-off workers. Since the American Recovery and Reinvestment Act became law in February, Minnesota's 8th Congressional District - as of April - received nearly $62 million in funding for programs to save and create jobs.

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.