HF5115

Purpose

To fund a reconstruction project for marked U.S. Highway 8 from Karmel Avenue in Chisago City to Interstate 35, including pedestrian and bike trails along that section. The bill aims to upgrade the highway by possibly widening to four lanes, adding or rebuilding frontage and backage roads, and realigning nearby local roads to manage access to U.S. Highway 8.

Main Provisions

• Subdivision 1: Appropriation
  • Appropriates 24,000,000 from the bond proceeds account in the trunk highway fund to the Commissioner of Transportation for predesign, design, engineering, and construction of the U.S. Highway 8 reconstruction project (Karmel Avenue to I-35), including pedestrian and bike trails.
  • The money is for the portion of the project eligible for trunk highway bonds.
  • The funds are not available until the Commissioner of Management and Budget determines that sufficient resources have been committed from nonstate sources.
  • The appropriation remains available until the project is completed or abandoned.
• Subdivision 2: Bond sale
  • The Commissioner of Management and Budget must sell and issue state bonds up to 24,000,000 to finance the appropriation, following applicable Minnesota statutes and constitutional provisions.
  • Bond proceeds (except accrued interest and any premium) must be deposited into the bond proceeds account in the trunk highway fund.
• Subdivision 3: Application of planned spending
  • Money that the Department of Transportation has planned to spend on resurfacing U.S. Highway 8 (per the Metro District 10-Year Capital Highway Investment Plan 2020-2029) shall instead be applied toward the reconstruction project to supplement the appropriations from this section.

Significant Changes to Existing Law

• Creates a new, bond-funded appropriation specifically for the reconstruction of a defined segment of U.S. Highway 8.
• Directs that a portion of previously planned resurfacing funds be redirected to support this reconstruction.
• Establishes financing via state bonds and sets conditions on when the funds may be used (contingent on nonstate funding commitments and ongoing project status).
• Requires bond proceeds to be kept in a dedicated bond proceeds account within the trunk highway fund.

Availability and Financing Details

• Availability: The appropriation is contingent on confirmation of nonstate funding and remains available until project completion or abandonment.
• Financing vehicle: Up to 24,000,000 in state bonds, issued under specified statutes and constitutional authority.
• Use of funds: Bond proceeds (excluding interest and premium) go to the bond proceeds account; funds are used for the reconstruction project.

Relevant Preconditions and Planning Alignment

• The project is tied to a specific corridor (Karmel Avenue to I-35) and includes provisions for trails and access realignment.
• The plan aligns with broader transportation spending plans, with a directive to reallocate planned resurfacing funds toward this reconstruction.

Relevant Terms - Marked U.S. Highway 8 reconstruction - U.S. Highway 8 from Karmel Avenue in Chisago City to Interstate 35 - Pedestrian and bike trails - Frontage roads - Backage roads (as written in the bill) - Realigning local roads - Trunk Highway Fund - Bond proceeds account - State bonds - Bond sale - Commissioner of Transportation - Commissioner of Management and Budget - Nonstate sources - Metro District 10-Year Capital Highway Investment Plan 2020-2029 - Project completion or abandonment - Minnesota Statutes sections 167.50 to 167.52 - Minnesota Constitution Article XIV section 11