Hennepin County will fill part of SW light rail budget gap

Kenilworth corridor
The Kenilworth corridor is the proposed route of the Southwest light rail project in Minneapolis.
Jeffrey Thompson | MPR News 2014

Hennepin County officials took the first formal step Tuesday to fill a $91 million budget gap to help move the Southwest Corridor light rail project forward.

The Hennepin County Board will dedicate $5 million of environmental funds over the next four years to clean up contaminated sites along the proposed light rail route. Contamination was one reason the overall project costs increased by $341 million this spring to an estimated $2 billion total.

Commissioner Peter McLaughlin said contributing the $5 million will help keep the project on schedule for a 2020 construction date.

"Eight weeks ago things were looking pretty grim for the project," McLaughlin said. "The approach of using the environmental response fund is absolutely appropriate."

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Project managers say they reduced the total project budget by $250 million by cutting a station at the far western end of the line and delaying construction of another station to the east. New plans also include reducing park and ride spaces, station furnishings, art and landscaping. The new proposed budget is $1.744 billion.

Last week officials from Hennepin County and cities along the line promised to pitch in. Hennepin County pledged $8 million. Officials say Tuesday's $5 million is just a start.

"We're still looking at various programs and funds that the county could use in order to meet that additional $3 million," said project manager John Doan of Hennepin County.

Doan said he expects to save an estimated $10 million from lower bids now that the entire scope of the project has been reduced.

Hennepin County owns eight miles of the 16-mile corridor which is valued at $30 million. The county will donate the land, which makes the project eligible for a $30 million Federal Transit Administration match, Doan said.

Cities along the light rail route have proposed to pitch in a total of $25, including the $5 million environmental county funds. That money is also eligible for a federal match.

"Every local dollar that we raise through this process is matched dollar for dollar by FTA money," Doan said.

The Hennepin County Board, acting as the Regional Railroad Authority, also approved the updated Southwest light rail scope Tuesday. The Met Council is expected to approve the new plan Wednesday.