The CDA’s Predevelopment Finance Fund Fosters Business Growth and Creates Job Opportunities

At our July board meeting, Economic Development Director Chris Eng presented on the broad impacts of the Washington County CDA. While much of our work is centered around affordable housing, the CDA also utilizes a range of dynamic tools to promote economic growth across the county. One key, cost-effective resource is the CDA’s Predevelopment Finance Fund.

Created in 2018, the fund enables city and township representatives to assess economic development opportunities for areas that are ideal for development or redevelopment. Often before plans move ahead, these areas need initial research such as feasibility studies, environmental assessments, or cost analyses.

The CDA’s fund provides matching grants designed to assist municipalities or local economic development authorities in Washington County. These grants are intended to:

  • Increase the availability of shovel-ready properties
  • Provide opportunities for existing businesses to stay and grow
  • Spur new business development and job opportunities
  • Provide opportunities for business diversity
  • Increase commercial and industrial market values
  • Assist with removing blighted properties

To date, 26 grants have been awarded totaling $540,000; the local match has been approximately $2.3 million. Participating municipalities include Cottage Grove, Forest Lake, Hugo, Lake Elmo, Mahtomedi, Marine on St. Croix, Newport, Oakdale, Oak Park Heights, Scandia, and Woodbury.

For the Oak Park Heights project, the CDA helped city representatives to study business opportunities around the busy Highway 36 and Norell Ave. N. intersection. The CDA provided a $9,500 grant that the city matched with $15,300. The Minnesota Department of Transportation took notice and added a $644,000 grant to explore transportation needs and prepare the area for redevelopment. The resulting project is expected to add $2 million in value to the city.

Predevelopment Finance Fund grants can even help to ultimately save limited resources. The CDA granted $7,800 to the City of Forest Lake to study whether a large parcel of land was appropriate for a new business park. The study concluded that the cost to develop the necessary infrastructure for a multi-tenant business park was more than the market would bear at the time, which helped city leaders make decisions on the future of the property.

The Predevelopment Finance Fund illustrates the CDA’s commitment to promoting informed and strategic economic development throughout Washington County. For more information, please contact our Economic Development Director, Chris Eng, at 651-202-2814 or [email protected].

— CDA Board of Commissioners Chair Temmy Olasimbo
August 2025
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