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Council awards $2.75M bid for 23rd Street reconstruction, utility partner to cover substantial share
Summary
Council awarded the 2025 state-aid 23rd Street (1st Avenue to 9th Avenue East) project to low bidder KGM Constructors for $2,746,571.70; Hibbing Public Utilities will fund roughly $1.62 million for utility work, while state-aid/city funds account for approximately $1.13 million.
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Hibbing City Council voted April 2 to award the 2025 state-aid reconstruction of 23rd Street (1st Avenue to 9th Avenue East) to KGM Constructors, the low bidder at $2,746,571.70.
City engineer Jesse Storey told council the engineer’s estimate had been just over $3 million and that the bid includes substantial utility work handled by Hibbing Public Utilities. Storey provided a funding breakdown: roughly $1,130,479.20 from state-aid/city sources and $1,616,092.50 from Hibbing Public Utilities to cover water-main replacement, storm and lighting work and other utility sizing for the Memorial Building.
Councilor Swiberger moved to award the bid to KGM Constructors and the council approved the motion. Staff will proceed with contract award, obtain required bonds and insurance, and coordinate the Public Utilities’ scope with the street reconstruction schedule.
Action and next steps: council authorized award to KGM and staff to finalize contract and scheduling for construction in coordination with Hibbing Public Utilities.

