MINOT (AP) - This city and the Minot Area Development Corp. are getting $1.5 million from the federal government to help develop an agricultural park and shipping facility.

The grant is from the Economic Development Administration, which is a part of the Commerce Department. Gov. John Hoeven said Tuesday that the money will help with land acquisition, street construction, water and sewer services and other improvements at the 180-acre site.

The Minot project will involve what is known as intermodal shipping, which combines various transportation modes. The site also will accommodate several value-added agricultural firms that are planning expansions.

"Minot's planned new facility will help create a comprehensive, statewide rail freight system, which is an important element in continuing to grow our economy," Hoeven said.

Minot Mayor Curt Zimbelman said the intermodal park is a step toward developing the city into an agricultural and shipping hub.

"(It) will make it easier and cheaper for area farmers to get their commodities to market," he said.

The Minot project is expected to create at least 55 new jobs and generate $62 million in private investment, said Sandy Baruah, assistant U.S. secretary of commerce for economic development.

"President Bush and I are committed to partnering with communities to promote innovation and competitiveness," Baruah said in Minot on Tuesday.

Jerry Chavez, president and chief executive of the Minot development group, said the federal grant "is a vote of confidence from the U.S. Department of Commerce that we're moving in the right direction."

Hoeven said the nearest intermodal shipping service right now is in Dilworth, Minn. Officials in Bismarck also are building an intermodal shipping center.

Minot leaders have been working on a shipping facility for years. They hope to have it running by this fall. Earlier this month, the City Council voted unanimously to spend $500,000 on land for the project.