MARSHALL — Water line replacements, updates to a municipal water plant and more are on the list of projects area cities will be receiving state grant funding for, the Minnesota Department of Employment and Economic Development said this week.

DEED announced that a total of more than $20.7 million in Small City Development Program (SCDP) grants was awarded for infrastructure and property improvement projects in 33 cities and counties in greater Minnesota. The grant awards would have big impacts for area cities like Canby, which received more than $1.06 million to rehabilitate homes and commercial buildings.

“It will be huge for Canby,” said Canby City Administrator Bonnie Merritt. “We hope we can get some of our downtown buildings spruced up.”

The city of Tracy was another grant recipient. Tracy was awarded $600,000 to make improvements to the city water treatment plant, DEED said. Tracy City Administrator Jeff Carpenter said there were potentially different things the funding could be used for. In one example, he said, “We need pumps for the city wells.”

The cities of Hanley Falls, Russell and Walnut Grove each received grants of $600,000 to make improvements to water distribution lines, DEED said.

DEED administers the SCDP grants, which are funded by the U.S. Department of Housing and Urban Development. DEED officials said the grant funding will help support economic development in greater Minnesota communities.

“Funding through DEED’s Small Cities Development Program enables cities to undertake projects that promote economic vitality and quality of life in their communities,” DEED Commissioner Matt Varilek said in a news release. “These grants ensure all Minnesotans feel the benefits of economic development and have a safe, healthy community and home, regardless of where they live.”

Merritt and Carpenter said Friday that, while their cities had learned they would be awarded grants, there were still details to work out. Merritt said Canby intends to have an application process where Canby home and business owners can request funding to help with building rehabilitation.

“We want people to apply,” she said.

Carpenter said Tracy city staff would need to meet with an engineer to discuss the specifics of how the grant funds could be used. “It’s a pretty wide range of things you can use it for,” Carpenter said. He said he and Tracy Public Works Director Shane Daniels would likely meet with the engineer next week.

Over the past several years, Tracy has been in the process of replacing infrastructure like water and sewer lines, as well as city streets. Funding sources like grants help cover some of the costs of city improvement projects, he said.

Other grant recipients in the region included the city of Appleton, which was awarded $1.2 million to rehab 42 multi-family housing units, and to make storm sewer improvements. The city of Fairfax received a $600,000 grant for water main improvements. The city of Fulda received more than $1.15 million for street improvements and to rehab 21 homes. The city of Lamberton received $600,000 to improve water distribution lines.