By Leah Shaffer

This spring, state transportation officials lost out in a bid to obtain federal economic recovery funds to pay for improvement to the traffic-clogged interchange at Highway 169 and Interstate 494. This September, round two of the funding hunt begins: Minnesota Department of Transportation officials plan to apply for a TIGER grant to fund the interchange project.

The TIGER (Transportation Investment Generating Economic Recovery) grant program includes a total of $1.5 billion in funds available for transportation projects.

“Sounds like it’s a lot but it’s really not that much, nationally,” noted Khani Sahebjam, chief engineer at the Minnesota Department of Transportation, speaking about the TIGER funds.

All states will be competing for the funds – and Minnesota alone might be submitting $700-800 million worth of projects, he estimated.
The Highway 169/I-494 interchange improvements (which include removing stoplights and adding ramps) could cost anywhere between $150 to $180 million, depending on which version of the project is approved. Though the interchange work is one of a handful of projects MnDOT plans to submit, it has yet to receive approval from the federal government for its modified design. The department plans to continue to pursue its “performance-based” plan.

Though the federal government has a policy of only funding interstate interchange projects with every directional ramp, MnDOT is going to seek approval on a less extensive plan. The plan would not include ramps for two of the directions at 169/494 (those two ramps would take drivers from eastbound I-494 to northbound Highway 169 and southbound 169 to westbound 494). The modified project would bring the costs down from $180 million to about $150 million.
Sahebjam said they need to have a discussion with federal transportation officials about this performance-based solution – “where you build what you need and then look at the performance.”
Since the officials from the Federal Highway Administration last rejected this plan last spring, MnDOT has continued to do further analysis on the interchange and has found more evidence that the two movements are not needed.

With more evidence to build their case, they’ll be meeting with federal officials in August to once again seek approval for the smaller interchange project.

Even if the modified project receives approval, there’s no guarantee that the TIGER funds will go to this particular project. The applications must be in by mid-September and Sahebjam expects a decision on who receives what by the end of the year.

Whether the project receives the full $150 million “remains to be seen.”

“We’re doing what we can.”

Paulsen secures funding for project

In the most recent transportation appropriations bill that passed
U.S. House of Representatives, U.S. Rep. Erik Paulsen was successfully able to secure $400,000 funds for the 169/494 interchange project. According to a Paulsen staff member, the $400,000 is designated for construction.

“It’s a good sign as we try to secure all additional momentum possible at this point,” Paulsen said. He said there are also funding requests in the highway bill and through the TIGER grants.
“We’re using a three-pronged attack right now to secure funds for an important intersection,” he said.

The legislation still needs to pass the Senate and be worked into the final version of the bill.