Main Street Economic Revitalization Grant

In cooperation with the Minnesota Department of Employment and Economic Development.

PROGRAM DESCRIPTION

The Main Street Economic Revitalization Grant program awards matching funds to help businesses improve their buildings. The goal is to help Rochester stay a lively, welcoming place for people to live, work, and visit. Grant recipients can use the funds for property repair or renovation, building construction, landscaping and street scaping, demolition and site preparation, predesign and design, engineering, non-publicly owned infrastructure, or related site amenities.

REVIEW & APPROVAL PROCESS

  • Review: DMC EDA Staff
  • Recommendation: DMC EDA Board
  • Approval: MN DEED Staff

DISBURSEMENT OF FUNDS

Grantees will receive funding as a reimbursement once the work has been completed and proof of payment has been collected. The grant disbursement can be made in a single payment or multiple payments as the project progresses. Further details will be outlined in the grant agreement, executed after DEED formally approves the project. Only expenses incurred through June 30, 2026, are eligible for reimbursement.

CONTACT INFORMATION

For questions about eligibility, the application process, or technical assistance, please contact:

GRANT PROGRAM MANAGER

Wafa Elkhalifa
[email protected]
(507) 202-4074
dmc.mn



Featured Stories

To date, the Main Street Economic Revitalization Grant program has supported over 70 businesses and led to the creation of over 300 jobs and 22 vacant storefronts are now occupied. The grant awards ranged from $5,000 to $500,000, with an average award of around $59,000.

Approved Grants

as of 2/2/26

5th St. Center, LLC$36,000
1910 Fresh Mexican Kitchen$15,000
Abuhureira Islamic Center$100,000
Anderson Wheelchair$88,547
Andros, LLC$14,152
ANK Property (Parker)$24,000
ANK Property (Ida)$132,000
Art Heads Emporium$55,500
Baheya, LLC$4,100
BGD5 Mall DBA: Galleria at University Square$52,900
Bonana, LLC DBA: Uni Uni Tea$38,812
Cafe Aqui$33,000
Chabad of Southern Minnesota$59,900
City Walk, LLC$500,000
Diatom Books, LLC$1,979
DR 428, LLC$87,500
Eastwood Plaza$9,000
Enat Ethiopian Kitchen$39,600
Everyday 365 Clothing, LLC$4,500
Fermata Investments$37,750
Flowers by Jerry$3,531
Galleria at University Square$23,797
Gaming Bizaar, LLC$3,000
GarGaar Grocery$36,900
Green + The Grain$87,500
Griot Arts$30,000
Guerin Studio, LLC$22,500
Healing Touch Spa, LLC$35,000
Hiro$187,500
Interiors By J.Curry, LLC$1,220
Ironton, LLC$85,000
Jack’s Bottle Shop$15,000
Jersey Jo’s$2,141
Kahler Inn & Suites$15,000
Keller Tattoo, LLC$8,496
Kismet Consignment Boutique$9,000
Knight’s Chamber$9,600
La Michoacana Purepecha 3, LLC$52,500
Low Income Fam Apartments (1st Avenue Flats)$1,700
M & S of Rochester, LLC$21,000
Maro & Calal Boutique and Cafe$20,000
Marrow Restaurant$133,919
Masjed Abubakr Al-Seddeig, Inc.$100,000
Matik Real Estate Services, Inc.$10,803
Neighborly Group$20,000
New Spin Bicycle Shop$32,090
Nile Restaurant$21,000
Northgate Imports, Inc.$60,000
Nucleus RadioPharma$150,000
Old School Entertainment$5,000
Olmsted Bank Building Restoration$300,000
Orange Rose Distribution DBA: Popus Gourmet Popcorn$25,500
PAKS Properties III and Broadway Laundromat$34,500
Pasquale and Friends$7,500
People’s Food Cooperative$22,500
Race Automotive of Rochester, Inc.$750
Roasted Bliss, LLC$181,500
Rochester Art Center$5,100
Rossi Auto Body$120,000
Rowan International Grocery Store, LLC$15,000
Ryan Companies$25,000
Sargent’s on Second$34,289
Schmitt Automotive Repair$4,000
Second Street Hotels Group$14,577
Skiathos, LLC$8,000
Soliflo$30,000
Stack Downtown Investments, LLC$14,296
Struve Paint and Decorating Store$6,866
Tap House$45,000
Theater Companies and Dinner Theater$4,500
The Cobblers, LLC$25,000
The Landing MN$200,000
The Nordic Shops, Inc.$23,400
The Well$186,000
Thesis Beer Project$9,000
Tinos, LLC$48,000
TRCH Plaza, LLP$11,000
Treedome DBA Pop’s Art Theater$17,100
True Queens Boutique$10,500
Tyrol Ski Shop, Inc.$3,000
Well Living Lab, Inc.$10,000
Wendland Utz$26,355
West End Salon & Spa, LLC$87,500
Zastrow Photography$15,000
Zumbro Lutheran Church$6,000
Zumbro Valley Health Center$200,000

Frequently Asked Questions

What is the Main Street Economic Revitalization Grant Program?

This is a state-funded initiative intended to provide grants for capital improvement projects in central business districts across the state.

Projects that result in improvements to any permanent structure or other asset added to a property that adds to its value are eligible. Business operations expenses are not eligible. Applicants need to have other sources of funding to match any funds given by this program.

Who administers the grant program in Rochester?

The grant is administered by Destination Medical Center Economic Development Agency located in downtown Rochester. The DMC EDA applied for and secured the grant award with the support of the City of Rochester.

Eligible projects must be within the approved areas.

Who can apply for funding?

Any person or company planning to invest in eligible capital projects in the approved areas may apply.

What investments are funded by the grant?

Capital investments, such as:

  • Repair or renovation of property, including expansions and additions
  • Demolition, site preparation, and building construction
  • Landscaping, streetscaping and related site amenities
  • Engineering, pre-design and design work
  • Infrastructure
What investments can NOT be funded by the grant?

The purchase of real estate is not eligible, nor are business operations or business operating expenses, such as inventory, wages, or working capital.

How much was the DMC EDA’s grant award?

In Round 3, DMC EDA was awarded $750,000 for distribution in the DMC District (with priority given to those organizations near the future Link Bus Rapid Transit corridor) and the Lowertown Neighborhood.

In the first two rounds, the DMC EDA distributed up to 3 million dollars in grants in the DMC District and approximately $950,000 in phase 2 (southeast Crossroads to Bear Creek, and the Northwest Design District and Northgate Area) with a minimum award of $3,000 and a maximum of $750,000 per award.

These grant awards could cover up to 30% of the project cost. The remaining funds must come from other sources. For example, a $100,000 capital project can be awarded up to $30,000 in Main Street Grant funds. The remaining balance must be funded through other sources.

What can be used for the matching funds?

Loans, equity, and local government funding not derived from state or federal sources can be used for the match.

Who provided the grant funding?

Funding was provided by the State of Minnesota Department of Employment and Economic Development.

Why did the State of Minnesota initiate this program?

The grant program was intended to help central business districts physically rebuild and reposition themselves in the face of a substantially changing downtown economy.