Met Council proposes $250M loan for Highway 65 and F Line Transit Project in Minnesota

A pivotal discussion unfolded during the Minnesota Legislature's Conference Committee on the Transportation Omnibus bill, H.F. 2438, focusing on a significant funding partnership between the Metropolitan Council and the Minnesota Department of Transportation (MnDOT). The committee is considering a one-time loan of up to $250 million to facilitate concurrent construction of a major transitway project alongside critical highway improvements.

Commissioner Nancy Daubenberger of MnDOT highlighted the urgent need for safety enhancements along Highway 65, where a high percentage of crashes result in injuries or fatalities. The proposed funding would allow for the reconstruction of the highway to coincide with the F Line bus rapid transit project, minimizing disruptions and reducing overall costs. Daubenberger emphasized that delaying the highway work could lead to an estimated $10 million increase in costs due to rising construction prices.

The loan, as proposed, would be interest-free, a point of contention that sparked discussions among committee members. Some legislators expressed concerns about ensuring that neither government entity would financially benefit at the expense of the other. The committee is working to finalize language that would guarantee a fair arrangement for both parties involved.

The Metropolitan Council's Government Affairs Director, Judd Shettin, supported the initiative, asserting that it represents a collaborative effort to enhance regional infrastructure while avoiding the pitfalls of staggered construction timelines. The committee is also exploring the possibility of expanding the scope of the project to include additional improvements, contingent on legislative approval.

As the committee deliberates, the focus remains on ensuring that the funding partnership not only addresses immediate safety concerns but also sets a precedent for future cooperative projects between state and regional agencies. The anticipated outcomes of this initiative could lead to safer roads and improved transit options for Minnesota residents, with construction slated to begin as early as 2028.