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Council approves timeline for Sixth Avenue West reconstruction; councilors urge funding discussion

3298033 ยท May 14, 2025
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Summary

The council approved a multi-year timeline to rebuild Sixth Avenue West, move utilities, and replace steam vaults, and members asked for a separate working-session discussion on funding and bonding for the roughly $10.3 million project.

The Virginia City Council approved a proposed timeline for the multi-year Sixth Avenue West reconstruction project, which will require relocating utilities, removing steam lines and steam vaults, and rebuilding sidewalks and streets over a three-year construction period.

City engineer Matt Reeder presented the plan and told councilors the scope includes utilities running under the power plant, and that public utilities would be responsible for water-line relocations and steam-line demolition. "Removal of the lines, including the steam lines and redoing the sidewalks and the streets will need to happen over a 3 year construction period," staff summarized to council.

Councilors stressed the need to align timeline approval with a concrete funding strategy. Councilor Paulson noted the project estimate of about $10.3 million and asked how the city would pay if state grant funding is not secured, requesting a focused discussion on bonding and prioritization at a future working session. City staff said the timeline approval does not obligate funding immediately and said the city will continue pursuing grants, including applications to the Minnesota Pollution Control Agency; staff also said construction award and bonding steps would follow the established finance process.

Councilor Johnson warned that delays or second-guessing midstream could reduce bid competition and increase costs and urged timely action. Councilors agreed to discuss funding and bonding in a working session and to consider state grant opportunities; the city noted one previous grant application for the project had been unsuccessful and staff will reapply when the next funding cycle opens.

What happens next: The timeline was approved; staff will continue grant applications, prepare bond-related materials for council review, and present funding options at a working session so the council can decide whether to proceed with bonding and final contract awards.