Hastings council approves supplemental agreement with state to shift US-6 project to three-lane design; city share split over 2026–27 budgets

The Hastings City Council on a unanimous 8‑0 vote approved Resolution 2025‑04, adopting Supplemental Agreement No. 1 with the state to change the US Highway 6 improvement project from a five‑lane plan to a three‑lane design with a roundabout at Elm and South Street.

Lee, a city staff member, briefed the council on the history and financial terms. “In 2016, the council approved the agreement with the state for a 5 lane project that detailed out the 80 twenty’s cost share for that project. In 2021, discussion started with the state on changing from a 5 lane to a 3 lane design. And then in 2023, the council approved a resolution of support for the 3 lane project with a roundabout at Elm And South Street,” Lee said. He told the council the supplemental agreement updates the scope, shifts some preliminary engineering costs to the state because the city had already paid for the five‑lane engineering, and sets a construction schedule.

The staff presentation included line‑item figures used by the city in budget planning: preliminary engineering (listed as $386,000), construction costs ($4,870,000), construction engineering ($244,000), right‑of‑way acquisition ($731,000) and utilities included in the state contract ($141,000). Lee said those amounts produce a city obligation of $6,370,000, which will be split roughly half in the 2026 budget and half in the 2027 budget.

Lee said the state plans to advertise bids this fall and begin construction in spring 2026, with work continuing through the 2027 construction season. The supplemental agreement does not include utility relocation work performed by the city; Lee said the city expects to bring a separate agreement for utility relocation costs to council within about a month to six weeks. Those utility relocation costs were described separately as approximately $9,800,000, with the state reimbursing 80 percent of that work under a separate arrangement. Lee said reimbursements for utilities would be submitted as work progressed.

When asked who would acquire property, Lee said the state is handling right‑of‑way negotiations and that he did not know how much property had already been acquired. He also confirmed that some sanitary sewer work and other utility work must be completed before final paving because those utilities run in the highway alignment.

Mayor and council members raised scheduling and budget‑timing questions; Lee confirmed the city is accounting for the payment schedule across the two budget years and that reimbursements will be submitted incrementally. After council discussion, the resolution passed 8‑0.

The supplemental agreement replaces the five‑lane design previously approved by the council with the three‑lane plan, updates the project timeline and allocates the city’s 20 percent share across 2026 and 2027 budget years. The city will return to the council with a separate utility‑relocation agreement and cost breakout before utility work begins.