Water, transportation projects to receive biggest chunk of bond proceeds under capital investment law

An inventory of state-owned real estate is 7,831 pages long, which comes with a similarly hefty number of maintenance tasks. The to-do list has grown without capital investment funding to tackle many of the projects as lawmakers went three years without agreement on a bonding bill.

Until this year.

On the last day of the 2023 session, legislators approved a $1.8 billion package of investments in infrastructure – $1.6 billion paid for by borrowing and $225 million paid for in cash.

Per Article 11 of the state constitution, public debt may be issued, in part, “to acquire and to better public land and buildings and other public improvements of a capital nature and to provide money to be appropriated or loaned to any agency or political subdivision of the state for such purposes.”

Sponsored by Rep. Fue Lee (DFL-Mpls) and Sen. Sandra Pappas (DFL-St. Paul), the law generally took effect June 2, 2023.

HF669*/SF676/CH72

¬¬Water and wastewater

More than $381 million will go to the Public Facilities Authority for drinking water and wastewater infrastructure improvements. This includes more than $222 million for 35 local projects to improve wastewater treatment plants, bring wells online, repair sanitary sewers and water mains, add lift stations and build water towers.

Other Public Facilities Authority appropriations include:

• $80 million for point source implementation grants;

• $52 million for wastewater projects under the clean water revolving fund program;

• $41 million as a state match to federal grants; and

• $35.2 million for projects under the drinking water revolving fund program.

Transportation

The law appropriates $326.3 million to the Department of Transportation from the General Fund and proceeds of general obligation bonds.

Among the appropriations will be:

• $84.95 million to improve local roads;

• $67 million to repair or replace local bridges;

• $18.1 million to the Port Development Assistance Program;

• $9.6 million for rail service improvements; and

• $2.4 million for upgrading Safe Routes to School infrastructure.

County and city governments will get funding for 21 named projects. The largest are two $25 million projects – improvements to Highway 65 in Anoka County and preparations for bus rapid transit on St. Paul’s Third Street/Kellogg Boulevard bridge.

Environment

The Department of Natural Resources will receive $233.1 million from the General Fund and the bond sale proceeds. This includes $55.4 million to mitigate flood hazards, $36 million for asset preservation, and $20 million to replace unusable facilities under the DNR Betterment of Buildings program.

Money will also go to dam repair, improving accessibility at parks and recreation areas, constructing trails, stabilizing riverbanks, and planting trees.

Higher education

The law will send money to state colleges and universities for their facilities. Minnesota State is slated to receive $181.1 million – $134.7 million from the proceeds of general obligation bonds, $45 million from user-funded bonds and $1.3 million from the General Fund.

Allocations will be $44.7 million for asset preservation and replacement projects and the rest to 14 projects at colleges and universities across the state, including:

• $23.1 million to renovate Weld Hall at Minnesota State University, Moorhead;

• $22 million for technology center renovations at Inver Hills Community College;

• $21.5 million to renovate and expand the technical trade spaces at Pine Technical and Community College;

• $20.5 million for the first two phases of renovations to the Management Education Center at Minneapolis Community and Technical College; and

• $11.6 million for classroom and athletic space renovation at Central Lakes College.

The University of Minnesota will receive $135.95 million: $92.6 million to renovate Fraser Hall on the Minneapolis campus for an undergraduate chemistry center and $43.35 million for asset preservation and replacement across its system.

Other appropriations in the law:

• $77.8 million to upgrade the Hastings Veterans Home campus;

• $72 million to expand arterial bus rapid transit routes;

• $25.1 million to renovate the Minnesota National Guard’s Rosemount Readiness Center;

• $18.03 million to the Minnesota Zoo: $16.8 million to replace the lakeside plaza and other asset preservation, along with $1.2 million for a new animal hospital;

• $12.2 million for new snowmaking infrastructure at Giants Ridge ski resort;

• $12 million to the Board of Water and Soil Resources for its local road wetlands replacement program;

• $11.4 million to address increased costs in constructing a Department of Public Safety emergency operations center. A 2020 law appropriated $29.5 million for the building;

• $10 million for a new material recovery facility in Olmsted County that will help remove problematic items from the waste stream;

• $9.6 million for asset preservation at the National Sports Center in Blaine;

• $8.8 million for security upgrades at the State Capitol complex;

• $8.5 million for grants to behavioral health crisis facilities in Duluth and Dakota County;

• $4 million for library construction grants; and

• $384,000 to repair the Department of Agriculture’s potato inspection facility in East Grand Forks.

HF0669* / SF0676 / CH72