DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
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Authorization To Accept Grant Funds From 2025 Minnesota Highway Freight Program And Execute Grant Agreement For County State Aid Highway 50 And Interstate 35 Interchange, County Project 50-33
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PURPOSE/ACTION REQUESTED
Authorize acceptance of State Funds from the Minnesota Department of Transportation (MnDOT) 2025 Minnesota Highway Freight Program (MHFP) and execution of a grant agreement for County Project (CP) 50-33.
SUMMARY
The Federal Infrastructure Investment and Jobs Act (IIJA) invested in the National Highway Freight Program, which funds the MHFP. The MHFP is a competitive grant program that provides funds for construction projects providing measurable freight transportation benefits across modes, including projects that connect highways, railroads, ports, waterways, and airports.
To provide a safe and efficient transportation system, staff proceeded with work on CP 50-33 which includes the reconstruction of the bridges and the interchange at Interstate 35 and County State Aid Highway (CSAH) 50/CSAH 5 to replace the existing deficient interchange and coordinate with strategic capacity needs on I-35 (Attachment: Project Location Map). The project is included in the adopted 2026-2030 Capital Improvement Program (CIP). Staff has periodically applied for and received funding from multiple sources to support the design and construction of the project. Construction is now estimated at $66 million, not including costs for right of way. Anticipated construction funding now includes $40.8 million from the 2025 legislative session trunk highway appropriation (letter from the MnDOT Commissioner dated June 9, 2025). This leaves an estimated funding gap of $25.2 million for CP 50-33 construction costs.
The County Board authorized staff to submit a funding application for CP 50-33, requesting $10 million from the MHFP grant program by Resolution No. 25-405 (August 26, 2025). The application was due and submitted by September 3, 2025, and included letters of support from the Cities of Lakeville and Burnsville.
On January 15, 2026, MnDOT confirmed awards totaling $47.2 million for 16 transportation projects under the MHFP funding program. Additionally, by letter to Dakota County dated February 6, 2026, the MnDOT Commissioner confirmed the MHFP award of $7 million for CP 50-33. This funding will be allocated for construction of interchange project design elements on CSAH 50 and CSAH 5 at and near the junctions with the I-35 ramps.
RECOMMENDATION
recommendation
Staff recommends the acceptance of the $7 million awarded under the MHFP program to support construction CP 50-33, the CSAH 50/5 interchange with I-35, and authorization to execute a grant agreement.
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EXPLANATION OF FISCAL/FTE IMPACTS
Acceptance of this grant reduces the local funding burden for CP 50-33. No amendment to the current 2026-2030 CIP is required at this time because the grant funds will be programmed in the future 2027-2031 CIP update, with construction scheduled to begin in 2029. No new FTEs are requested.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Minnesota Department of Transportation (MnDOT) requested project funding application submittals for the 2025 Minnesota Highway Freight Program (MHFP), due and submitted by Dakota County for County Project (CP) 50-33 by the deadline of September 3, 2025; and
WHEREAS, the proposed CP 50-33 improvements will enhance long-term freight mobility and safety and accommodate future growth; and
WHEREAS, federal and state funding of projects reduces the burden on local taxpayers for regional improvements; and
WHEREAS, CP 50-33 is included in Dakota County’s 2026 to 2030 Capital Improvement Program, estimated at $66 million for construction; and
WHEREAS, by their letter dated June 9, 2025, the MnDOT Commissioner documented the anticipated funding of interstate/trunk highway project elements using $40.8 million from the 2025 legislative session trunk highway appropriation, leaving an estimated funding gap of $25.2 million for CP 50-33 construction costs; and
WHEREAS, by their letter dated February 6, 2026, the MnDOT Commissioner has awarded $7 million of MHFP funding to Dakota County, to be used for construction of interchange project design elements on County State Aid Highway (CSAH) 50 and CSAH 5 at and near the junctions with the I-35 ramps.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes acceptance of the $7 million grant awarded under the Minnesota Highway Freight Program for County Project 50-33, the interchange at CSAH 50/5 and I-35; and
BE IT FURTHER RESOLVED That the Dakota County Board of Commissioners hereby authorizes the County Engineer/Transportation Director to execute a grant agreement to accept the $7 million in funds for construction.
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PREVIOUS BOARD ACTION
25-405; 08/26/25
ATTACHMENTS
Attachment: Project Location Map
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: Doug Abere