Fosston Economic Development

The City of Fosston is set in the middle of a beautiful area, where the prairie meets the pines. The community is nestled amid a mix of rich agricultural land, lakes, and trees. It is also home to many growing and thriving businesses. Fosston Economic Development Authority (FEDA) has been a leader in supporting Fosston’s business and industry sectors since its inception in 1988, providing development incentives and working closely with the business community to support growth. The City has earned a reputation as a hub of employment within the region, helping to create and/or retain 875 jobs.

We have earned a reputation for success by making this city one of the best locations in the state of Minnesota to live and do business. As you look through the Economic Development section of our website, we hope you find information that will encourage you to think of Fosston for your business location. Our fully developed industrial park, loan funds, tax incentives and sincere desire to work with you make Fosston a place to call home.

Locate your business in Fosston, Minnesota, and grow with us!

Industrial Park

The status of industry in Fosston has never looked stronger, with the advent of both new industry and expansions over the course of the last several years.

For a business looking for a place to start operations, re-locate or expand, the Fosston Industrial Park offers all the necessary infrastructure: streets, curb and gutter, water, sewer, electricity and natural gas. In addition, Polk County Solid Waste Management, located in the Industrial Park, produces steam as a by-product which can be utilized for industrial purposes. Several vibrant businesses are located within the park, including Consolidated Equipment Group (CEG), Minnesota Dehydrated Vegetables, Specialty Products and Technology, and J. Rettenmaier USA LP.

The park has expanded three times since its inception. Last year, the city was awarded a $5.8million Federal EDA grant to build out the newest Industrial Park expansion in Fosston, consisting of 40 acres. Eight lots will be built out with infrastructure beginning in Spring 2024. For More information about these lots, please call Cassie Heide, City Administrator at 218-435-1959.

Available Commercial Properties

There are a number of properties available in Fosston at this time. In 2024 construction of 8 lots in the newest expansion of our industrial park will be constructed.

Commercially zoned property right on highway 2 - 116 1st St E. City owned.
Contact: City Administrator, Cassie Heide, 218-435-1959
The following buildings and lots are available for sale or lease:

The Thrivent office in Fosston has the back 1/3 of the office open for rent. This includes small reception area and 3 offices. It could potentially be used as primary entrance (in back) for clients/renter. Call Kristi at 218-435-7800

104 Kaiser Ave N - For Sale - 2,592 square feet in downtown Fosston.

101 1st St W - retail/office space for rent coming soon. 1600 square feet with bathrooms. Right on highway 2 at the lights. Call Jesse at 218-686-3346.

Property: Commercial/Industrial

Description: 40 acres, approximately

Address: Hwy. 2 W

Contact: Cassie Heide, City Administrator, 218-435-1959

Other properties may be listed with Sollie Realty, Inc, or with United Country-Juve Real Estate.

Finance Resources

Fosston Microloan Program

The primary purpose of the program is to preserve and promote the vitality of the Fosston business community, promote new or retain existing jobs and businesses, preserve existing business buildings in energy efficient and visually appealing manner.

Eligible Applicants: All retailers, wholesalers, manufacturers, and service businesses would be eligible for the assistance program. Generally, businesses falling within the SBA’s definition of a small business would be eligible for assistance. Applicant must have been in business for a minimum of six months to qualify for the program. All applicants will be subject to a credit check.

Applications are reviewed monthly by the Fosston EDA Board.

Read the loan guidelines and download the application form.

IRP Loan Fund

Eligible Applicants: All retailers, wholesalers, manufacturers, and service businesses would be eligible for the assistance program. Generally, businesses falling within the SBA's definition of a small business would be eligible for assistance.

Ineligible Applicants: Any use, which the Economic Development Authority board and the City Council in its sole discretion, determines as not being beneficial to the interest of the City of Fosston, will be ineligible for assistance under this program.

Applications are reviewed monthly by the Fosston EDA Board.

Tax Increment Financing and Tax Abatement

Tax increment financing (TIF) and/or tax abatement may be available for specific projects and will be determined on a case-by-case basis.

For more information on any of Fosston's finance programs, call City Administrator, Cassie Heide at 218-435-1959, or email cassie@fosston.com