Local News

Community Development Grants Drive Growth Across Otter Tail County

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Otter Tail County, Minn. – The Otter Tail County Community Development Agency (CDA) has awarded more than $804,000 to 11 communities for projects that strengthen local economies, expand housing opportunities, expand the tax base, and improve quality of life. The Community Growth Partnership Grant Program was created in 2019 by the Otter Tail County CDA and has awarded 42 grants to eligible cities and townships to help turn local ideas into projects that create lasting community impact.

The Community Growth Partnership Grant Program helps communities move projects from the idea phase to implementation by providing funding in four priority areas—affordable housing, redevelopment, commercial rehabilitation, and public infrastructure. Since 2019, grant funding has created new housing opportunities, revitalized downtown businesses, removed blighted properties, installed public infrastructure, and leveraged millions of dollars of public and private investment. Many cities have used multiple grants over several years to build on previous successes, creating momentum that continues to support growth across Otter Tail County.

The City of Vergas is one example of how strategic planning can lead to long-term community growth. The City’s first grant was used to complete a housing study that identified community needs and opportunities for future housing development. With that information, another grant helped redevelop the former grocery store site into Altona Square, a mixed-use project with new commercial space and apartments. Additional grants supported blight removal, preparation of four new residential lots, construction of a downtown parking lot, and the creation of a commercial rehabilitation program that encouraged local businesses to reinvest in their properties. The community has since added more than 30 new housing units and increased its tax base by $1.6 million through the Altona Square redevelopment project.

The City of Battle Lake has also used multiple Community Growth Partnership Grants to advance its long-term vision. Beginning with the acquisition of the Hatchery Row property in 2019, the city continued investing in demolition, cleanup, redevelopment planning, and a community housing study that helped guide future residential development. Those efforts have contributed to more than 40 new housing units and supported the $5.2 million Hatchery Row redevelopment project. More recently, commercial rehabilitation grants have helped local businesses invest in building renovations and improvements.

The impact of the Community Growth Partnership Grant Program(opens in new tab) extends well beyond Vergas and Battle Lake. Across the county, grant-funded projects have supported the development of more than 100 new housing units, prepared dozens of residential lots for future development, revitalized downtown commercial buildings, expanded business opportunities, and transformed underutilized properties into productive community assets. By investing in projects that address local priorities, the grant program helps communities grow and improve the quality of life for residents.

The Community Growth Partnership Grant Program is open to applications from cities and townships within the County. If you have an idea for your community that will advance affordable housing, redevelopment, or rehabilitation of commercial buildings, visit ottertailcounty.gov/community-growth(opens in new tab) for more information about the program and connect with your local city staff.