MPR: Legislature Gives LRT a Lift

Legislature Gives LRT a Lift
By Dan Olson
May 12, 1999

Supporters of light-rail transit are thrilled by the compromise fashioned by Minnesota legislative leaders, which includes money for the Hiawatha Avenue line. The compromise calls for selling $60 million in state-backed bonds to help build the project. But critics worry light rail will cost much more to build and operate than the estimates put forward by proponents.

GOVERNOR VENTURA PUT LIGHT RAIL among his top legislative priorities for the session. He told reporters the compromise agreement to sell bonds to help pay for the line is necessary to win federal matching money, but is by no means the last hurdle for the project.

Ventura: No, this just created the ability, where we put ourselves in a position to get the federal money. Had we not done that we would have been in no position to get it and no position to move forward on transportation initiatives I feel pretty strongly about.

There are over 200 competing proposals around the nation for federal transit money. The Hiawatha Avenue line is behind half a dozen other projects which have already nailed down their funding. Minnesota contributed $40 million to the Hiawatha project last year. Federal officials say there's a good chance the Hiawatha line will get over $200 million if additional state money is pledged.

Hennepin County Commissioner Peter McLaughlin, a light rail proponent, is thrilled with the compromise agreement reached by lawmakers. Bonding bills require a super majority - 60 percent voting for passage. McLaughlin thinks the proposal stands a good chance.

McLaughlin: LRT was a part of the overall deal to settle the end-of-the-session controversies, and because there'll be other things in that bonding bill, I think, in fact, it will pass.

The Hiawatha Avenue line will run 12 miles from downtown Minneapolis to the Mall of America by way of the airport. Supporters predict it will cost $446 million to build. When completed in 2003, proponents say the line will carry about 22,000 people a day. The estimated annual operating cost will be about $10 million. Metro Transit, the owner and operator of the line, says passenger fares will supply about $4 million. The rest, officials say, will come from the Metropolitan Council's budget.

Republican Representative Carol Molnau of Chaska, Chair of the House Transportation Finance Committee says she's disappointed negotiators included light rail in their agreement. She predicts all of the costs will be higher than predicted.

Molnau: I do believe it will come in much higher than that. I also don't believe we have a plan to pay for that other than coming to the taxpayers and going to the property tax, and that concerns me a great amount. I also know the cost projections in other cities have always been understated, and I already know we have not included all the costs. So, yes, I have some concerns for how this is funded.

The Hiawatha line's most expensive stretch will be the airport connection. Proponents want the train to go through a tunnel under the facility. The tunnel and the cost of three airport light rail stations is put at about $100 million. says he's counting on financial help from the Metropolitan Airports Commission.

McLaughlin: I'm anticipating that the MAC, the Metropolitan Airports Commission, will likewise be making a significant contribution to this. We just have to work out the final details of the contribution, but I don't anticipate any problem there.

Still not clear is what bus riders get out of the compromise agreement. Metro Transit is asking for a $20million budget increase to expand service. The agency also wants $52 million in bonding to buy 145 new buses. Details of those and other transportation issues will be worked out by conference committees members before adjournment.

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