Willmar council authorizes temporary financing to bridge federal grant timing for Lakeland Drive path

The Willmar City Council on a unanimous roll-call vote approved a resolution to temporarily finance a federal Transportation Alternatives Program award for the Lakeland Drive path project until the grant money is disbursed.

City engineer Jared Bogie told the council the city has “successfully obtained two grants” for the project: an Active Transportation Program award for $204,380 and a Transportation Alternatives Program award for $895,620. He said the Active Transportation funds require construction completion in 2026, while the larger federal funds will not be released until 2028, creating a timing gap the Community Investment Fund would cover.

The move lets the city construct the path in 2026 under an advanced construction agreement with the Minnesota Department of Transportation and the Federal Highway Administration and then be reimbursed when federal funds are released. Bogie said the project is on the State Transportation Improvement Program but acknowledged there is no “100% certainty” that federal circumstances could not change; he added that, to date, awarded funds have been delayed but not rescinded.

Councilmember Audrey moved to adopt the resolution authorizing temporary financing of the Transportation Alternatives Program grant for project 2504B; Mayor Reese seconded. By roll call the council voted 8–0 to approve the resolution. The council packet notes additional agreements tied to the grants will be brought forward for council review.

Next steps: staff will finalize the financing agreements and return related documents and grant agreements to the council for implementation and reimbursement processing.