Projects will contribute $138 million to retail and hospitality in Northern Minnesota
(St. Paul, MN) A study released today by the Minnesota Ag/Energy Alliance found the Sandpiper and Line 3 Replacement pipeline projects, as proposed, would add more than $2.3 billion in direct spending to the Minnesota economy, mostly from construction expenditures. The study was conducted by the Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s (UMD) Labovitz School, an unbiased research entity.
“These are incredibly important projects that will contribute significantly to Northern Minnesota’s economy, an area that has faced economic challenges of late,” said Brian Hanson, president and chief executive officer of APEX, a private sector-led business development engine for northeastern Minnesota. “They will create a huge economic boost for the entire region, not only in terms of construction jobs, but also for the many vendors who will provide support in site preparation, procurement, engineering and environmental assessment.”
In total, the two-year Sandpiper construction project is expected to add more than $900 million in direct spending throughout the 15-county northern Minnesota construction area, resulting in a total output effect of $1.3 billion during that time period. This suggests that for every dollar spent in construction, another $0.41 will extend to other parts of the economy. The total output effect of the Line 3 Replacement project will be more than $2 billion over a similar construction period in the same area.
The study estimated non-local construction workers will spend $138 million in the 15-county region during the two-year construction period, primarily in the retail, lodging (resorts, hotels/motels, and campgrounds), and food service sectors and supporting a combined 2,600 jobs in those same industries.
“We have a tremendous opportunity in Minnesota with both of the Sandpiper and Line 3 Replacement projects, as they will directly contribute to the state’s economy, generally, and the retail industries, specifically,” said Bruce Nustad, President of the Minnesota Retailers Association. “The numbers released in today’s economic study are very positive for these sectors of our state, and we are excited to see the positive impacts of these projects across Minnesota’s communities.”
ABOUT THE MINNESOTA AGRICULTURE & ENERGY ALLIANCE
The Minnesota Agriculture & Energy Alliance is a partnership between citizens, government, non-profit organizations and private companies working to support Minnesota’s farmers and agri-business, rural retailers and other small businesses. We want to improve life in our state, and so we support projects that make Minnesota better – and a better place to live and work
DISCLAIMER –The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth’s (UMD) Labovitz School was contacted by the Minnesota Agriculture & Energy Alliance as an unbiased research entity. Publication and dissemination of this report, or any of its data, is not an endorsement by the BBER/UMD of Enbridge Pipelines, LLC or its projects.
Enbridge provided the majority of inputs for this report. Where data was not available from Enbridge, the BBER utilized IMPLAN, industry standards, and other secondary data sources. The BBER relied upon the completeness, accuracy, and fair presentation of all data and information obtained from Enbridge and/or their agents. The report is conditional upon the completeness, accuracy, and fair presentation of that data and information. The BBER does not promise or guarantee the outcome of these results but rather is providing projections based upon inputs and outputs using IMPLAN software.
The BBER was asked to supply an economic impact analysis only. This analysis does not consider the social or environmental impacts of the project and should not be viewed as a cost benefit analysis or environmental impact assessment.