St. Louis County amends transportation sales‑tax plan and clears $45 million Central Range public‑works building for bond financing

St. Louis County commissioners voted April 15 to amend the county’s Transportation Sales and Use Tax (TST) Transportation Improvement Plan to make facility projects — including a proposed Central Range Transportation Building — eligible for TST proceeds. Commissioners also approved amendments to the county capital improvement plan and a resolution stating intent to issue general obligation transportation sales and use tax revenue bonds to finance the new Central Range facility.

Deputy County Administrator Jim Fallacy (presented as deputy administrator in the hearing) and county planners told commissioners the TST has generated about $155 million in total revenue since 2015 and currently yields roughly $21.5 million annually. County staff said they will limit new debt so debt service for all TST‑backed bonds does not exceed about 50% of the annual TST revenue (around $10.75 million), preserving pay‑as‑you‑go capacity for roads, bridges and safety projects.

Why it matters: the change makes a transportation facility — a public works campus that houses maintenance equipment, shops and engineering staff — an eligible capital project to be repaid using TST bond proceeds under Minnesota law. County staff said using TST revenue for this project will free property tax levy capacity that traditionally finances similar facilities.

Project and timeline: the Central Range Transportation Building is planned on two tax‑forfeit parcels near the County State Highway 5 and Trunk Highway 169 interchange in Balkan Township. County staff described a proposed campus sized to house about 42 employees and 17 tandem plow trucks, plus graders and other heavy equipment. County planners estimated the project cost at roughly $45 million. Staff proposed a multi‑phase schedule: site work in 2025, sanitary sewer extension in 2025–26, design and bidding through late 2025 and construction in 2026–27, with a target move‑in date around Aug. 1, 2027.

Deputy administrator Fallacy and sustainability planner Carol Adelen said the county analyzed alternatives and selected the site to maximize operational efficiency for the district’s service area. County officials said the new building will reduce equipment exposure, improve employee safety and support faster response times across the district.

Financing details: county staff proposed financing the project with TST‑backed general obligation bonds sized to keep combined TST debt service within the county’s policy target. Using a 20‑year bond structure, staff estimated the new debt would bring TST‑related debt service to roughly $10.5 million annually for a limited period, near but within the board’s 50% guideline. The county will apply to the State Credit Enhancement Program to improve borrowing terms.

Officials from the city of Hibbing, including Mayor Pete Hajduk, spoke in support of the project. Hajduk said the existing joint public‑works campus in Hibbing is too small for current needs and that a new facility will improve public safety, worker safety and long‑term service delivery for the region.

Auditor Nancy Nielsen said county staff and Baker Tilly and bond counsel had prepared for the transaction and that she was comfortable supporting the bond issuance process. Community partners including the Arrowhead Regional Development Commission also voiced support at the hearings.

Board action: commissioners held a public hearing and then voted to amend the TST Transportation Improvement Plan to list facility projects, approved an amendment to the county capital improvement plan that adds the Central Range Transportation Building, and passed a resolution stating the county’s intent to issue general obligation transportation sales and use tax revenue bonds (series 2025A) to support the project. Final bond terms and sale will follow standard bond‑issuance steps and rating calls.

What remains: staff said detailed design, sanitary‑sewer coordination with the Central Range Sanitary Sewer District, and final bond marketing remain to be completed. The county emphasized a policy limit to preserve approximately half of the TST revenue for road, bridge and safety projects.

Ending: The board’s votes move the Central Range Transportation Building from planning to the financing stage; county staff will return with final bond documents, application materials for state credit enhancement and contract documents as design and bidding progress.