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Committee reauthorizes Hiawatha North bond issuance after questions on scope and cost
Summary
The Enterprise and Labor Relations Committee voted to reauthorize previously authorized bonds for the Hiawatha North Public Works expansion after staff said the request restores prior authorizations; council vice president Chugtai pressed staff to explain why the original amount is being sought before project rescoping.
The Enterprise and Labor Relations Committee at Minneapolis City on June 16 voted to reauthorize bond issuances for the Hiawatha North expansion project after city staff said the item restores previously authorized bonding and will allow design work to proceed.
Chair Linnae Palmisano moved the committee recommendation to approve the reauthorization, and the motion carried.
Why it matters: Committee members pushed staff for clarity because the authorization seeks the original amounts approved years earlier even though the project has been reshaped. Council vice president Chugtai asked whether construction and project costs have changed since the original authorization and whether it makes sense to seek the same amount before a formal rescoping.
What staff said: Dave Wheeler, senior manager for banking investments and debt, said the action is procedural: "This was previously authorized, in various city budgets, under the Water 18 Project Code. Per city policy, we can't issue bonds, after 4 years, of the resolution date." Wheeler told the committee that no debt on the project is currently outstanding and the reauthorization allows the city to include the project in 2026 bond issuances.
Paul Miller, senior project manager in property services and the project's representative, said the work being authorized is the North Campus expansion and not the earlier roof depot site. "We do not intend to come back for, additional money," Miller said, adding that staff expect to restart and complete design work soon and are rescoping elements to fit the available bonding.
Council vice president Chugtai pressed the policy question: "I'm having a tough time really wrapping my head around why ask for the same amount of money again when the project rescoping hasn't happened." Miller and Wheeler responded that the immediate need is to recommence design work and preserve the previously authorized funding window so work can move forward without returning for additional authorizations.
What happens next: With the committee's recommendation, the city may include the Hiawatha North authorizations in the 2026 bond issuance schedule. Staff said they will continue rescoping work and do not plan to seek additional funding beyond the reauthorization.
Sources: Comments and answers by Dave Wheeler and Paul Miller to the Enterprise and Labor Relations Committee during the June meeting.
