Metropolitan Council approves up to $70M loan to MnDOT for Metro F Line corridor
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Summary
The council authorized the regional administrator to negotiate and execute a loan agreement providing MnDOT up to $70 million for coordinated roadway construction on the Metro F Line corridor; repayment is scheduled by 2040 or 10 years after construction begins.
The Metropolitan Council voted to authorize a loan agreement with the Minnesota Department of Transportation to coordinate roadway improvements for the Metro F Line bus rapid transit corridor.
Councilmember Barber introduced business item 2025-277, saying 2025 legislation gives the council authority to make up to two loans of council sales tax to MnDOT totaling up to $250 million for coordinated corridor construction. For the F Line, Barber said the proposed agreement would loan MnDOT up to $70,000,000 to allow construction on Highway 47 to begin in 2028. The loan would be repaid by 2040 or 10 years after construction begins, whichever is later; terms discussed include a 4 percent interest rate based on a municipal composite return intended to prevent financial benefit to either party.
Barber moved that the council authorize the regional administrator to negotiate and execute the loan agreement; the motion was seconded and adopted by voice vote.
What’s next: the regional administrator will negotiate final loan documents with MnDOT and return any required execution materials per the council’s authorization.