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Madison to Advertise Bids for North Eagan Avenue Reconstruction after Commission Approves Request
Summary
City staff told the Madison City Commission that the North Eagan Avenue reconstruction can proceed in 2025 using existing State Revolving Fund financing and local borrowing; commissioners voted to advertise for bids and keep options open for alternate funding that could delay the work to 2026–27.
The Madison City Commission voted to advertise for bids on the North Eagan Avenue reconstruction project, with staff saying the city can proceed in 2025 using existing State Revolving Fund (SRF) financing and local short-term borrowing if it decides not to wait for other grants.
City Engineer Jamieson told the commission the project runs from Second Street to Ninth Street and previously had a planning estimate of roughly $8.4 million. He said the SRF award covers roughly $5.3 million of that earlier estimate and that the city would face a local shortfall of about $3.1 million under the original number. Jamieson also reported a more recent updated construction estimate of about $6.7 million, which would reduce the shortfall to roughly $1.5 million if it holds.
Staff outlined three potential funding paths: proceed with the SRF financing now and make up the local share with city resources, wait for a Transportation Alternatives Program (TAP) award that staff said is likely to push construction into 2027, or pursue U.S. Department of Agriculture Rural Development (RD) financing that is still under initial review and could offer different terms but would probably delay the project to 2026. Ryan, a member of the engineering staff, said the TAP schedule discussed by the state would likely push a TAP-funded project to a fall 2026 bid and 2027 construction window.
To preserve the 2025 construction timeline, staff recommended using available capacity on the city’s tax anticipation note to cover a local gap if necessary; staff said the note has a maximum of $5 million, about $2 million of which has been used, and an approximate interest rate of 3.75 percent — “coincidentally the same rate as the SRF financing,” Jamieson said. Staff emphasized the city would advertise for bids and could reject all bids if they exceed available funds.
Commissioners discussed risks and timing. Several members said they wanted to put the project out to bid quickly so the city could evaluate real market responses; commissioners noted recent bid competition on other local projects had increased the number of bidders and sometimes produced more favorable prices. Staff proposed a roughly three-week advertisement period in mid-April with a bid opening in early to mid-April and a potential award by the commission’s second meeting in April; staff also offered to call a special meeting to consider bids sooner if needed.
After discussion, a commissioner moved to open bids for the North Eagan Avenue reconstruction. The motion carried.
Commissioners and staff repeatedly stressed that advertising does not obligate the city to accept any bid and that staff would return with the bid results and a recommended course of action.
