Metropolitan Council Loan Proposal Would Advance F‑Line Transit by Coordinating Highway Work with MnDOT

Lawmakers and agency officials described a proposal that would let the Metropolitan Council provide a one‑time loan of up to $250 million to the Minnesota Department of Transportation to coordinate highway reconstruction with construction of the F‑Line arterial Bus Rapid Transit (BRT) project on Central Avenue (Trunk Highway 65), Highway 47 and parts of 50th Avenue.

MnDOT Commissioner Nancy Daubenberger said concurrent construction would minimize disruption, reduce duplication and lower overall costs. MnDOT estimated that delaying the highway portion until 2030 could add at least $10,000,000 in direct cost increases and another roughly $8,000,000 in duplicated project‑delivery costs for design, right‑of‑way, outreach and construction administration. She said concurrent work would reduce additional years of corridor disruption and speed delivery of safety, multimodal accessibility and state‑of‑good‑repair benefits.

Metropolitan Council Government Affairs Director Judd Sheden and MnDOT staff said a loan would be repaid by the MnDOT metro district over about 10 years. The House drafting is silent on interest while the Senate position requires a 0% interest loan. An amendment under discussion (A42) would require a loan agreement and a separate project agreement that specifies coordinated design, programmatic compatibility and a repayment schedule; A42 also would require public disclosure of the loan and project agreements and set a legislative notification before construction funds are used. The amendment named the project and set an authorization cutoff of June 30, 2027, for entering the loan agreement.

Met Council officials said the funding would come from regional sales‑tax reserves (the council’s regional sales tax dedicated to transit and active transportation) and not from the general fund. Members of the committee and Met Council witnesses discussed whether a 0% interest requirement would create a loss of investment income to the council and whether contract language should ensure neither public entity receives disproportionate financial benefit. Met Council said it would work to negotiate fair loan terms and that if legislative comfort required a clause preventing one government from financially benefiting from another, the council could accept it as part of the contractual terms.

MnDOT Metro District planning director Molly McCartney said district estimates for roadway work accompanying the F‑Line total about $120,000,000; district funds would be used in part but borrowing from Met Council would accelerate additional work and allow construction to start with the F‑Line timeframe. Committee members discussed whether the loan could be broadened to other transit‑adjacent projects if language permitted, and Met Council said any expansion should preserve the regional‑transit focus of council revenues.

What’s next: Committee counsel walked the A42 draft with members, which would require submittal of a joint project agreement and loan agreement to the legislature, limit use of early‑phase funds to predesign/design/environmental work until the project agreement is accepted, and set reporting requirements when repayments begin. No loan was authorized in the hearing; conferees said they would continue negotiations on interest terms, project scope (Highway 65 and 47 plus 50th Avenue), and statutory notification and transparency requirements.