St. Louis County agrees to sell one-third interest in Hibbing maintenance facility to MnDOT and the city of Hibbing

St. Louis County commissioners approved an amendment to the joint powers agreement for the Hibbing joint maintenance facility and authorized the sale of the county’s one-third interest in the campus for $1.3 million.

Deputy Administrator Jim Nephew and staff told the board the sale splits the county’s $1.3 million share between the city of Hibbing ($890,000) and MnDOT ($410,000). The amendment lays out use and occupancy terms for the two-year construction period during which the county will act as a tenant at no cost and retain operational responsibilities for existing systems such as fuel pumps and brine making and billing.

Why it matters: County staff said the sale and amended agreement expedite the city’s public-safety campus project and remove complexity for the county while preserving operational continuity for services that must continue during construction.

County attorney and public-works staff briefed the board on the legal and logistical work required to disentangle a three-way ownership arrangement that dates to 1997. The amendment sets expectations for space use, maintenance responsibilities and billing during the construction period and clarifies ownership transfer terms.

Commissioners thanked city and MnDOT leaders and county staff for cooperation. Commissioner Yugovich, who represented the district in negotiations, said the result was “seamless” and allowed the project to stay on schedule. Administrator Gray and Assistant County Attorneys were recognized for legal work that county staff said smoothed the process.

The board approved the sale and the joint-powers amendment on voice votes; the meeting transcript does not contain a roll-call tally.