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Eagan Avenue reconstruction pace at risk if TAP funding accepted; city weighing SRF and USDA RD options
Summary
City staff told commissioners that Transportation Alternatives Program funding could delay bidding to fall 2026 and push construction to 2027; staff recommended pursuing SRF or RD financing that maintains the current 2025–26 construction timeline if possible.
City staff updated the commission on financing options for the Eagan Avenue reconstruction project and warned that pursuing a Transportation Alternatives Program (TAP) grant could delay bidding and construction.
Jamieson said the city has pursued three funding sources: State Revolving Fund (SRF) financing, the Transportation Alternatives Program (TAP), and USDA Rural Development (RD) funding. "We had 3 different funding opportunities that we've been pursuing: SRF financing, transportation alternatives, and then RD, the rural development," Jamieson said.
Ryan, an engineer participating by Zoom, told the commission the USDA RD administrative review could take about 30 days and that TAP funding, if awarded, would likely delay the earliest bid date to fall 2026 and push construction to 2027. "If we're if we're going another month, I think we're in the wrong time to bid a project," Ryan said, adding that a March bid opening would still likely preserve the 2025–26 construction timeline but that pushing into April could sharply reduce bidder interest and raise costs.
Nut graf: Staff recommended caution in accepting TAP funding because a TAP award carries conditions and timing that would likely push the project out of the city's current 2025–26 construction window; SRF and RD remain alternatives but carry administrative front-end document requirements.
Details: Jamieson said the city applied to TAP for about $1,300,000 but has been told that awards in the region typically top out around $600,000; he cautioned that accepting TAP and delaying construction could expose the city to significant cost escalation on an estimated $8,400,000 project. He said KLJ, the engineering firm, is finalizing designs and that USDA review was underway.
Ending: Staff asked for direction to continue pursuing RD and SRF options while monitoring the RD review timetable; if reviews do not clear in the next 30 days staff said bidding later this spring would likely push construction into 2026 or beyond.
