Charlie Zelle, Commissioner
Minnesota Department of Transportation
February 10, 2014

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U.S Bureau of Economics:
MN ranked 5 th among nation’s fastest growing economies
Politico: MN ranked
2 nd best state in the nation

 What we do today impacts tomorrow:
 Population will increase by 1M (2030)
 Population is growing and changing
 Truck freight increases 30% (2030)
 Customers Increasingly value and rely on transportation options
 Other states are investing in transportation

 50% state highway pavements are over 50 years old
 35% of MnDOT bridges are over
50 years old
 MN 9 th most extreme temperature variations in the nation
 Interstates in MN rank 38 th in the nation
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 $50B in total needs over 20 years, all modes
 To achieve an economically competitive system
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 Need $30B for the state highway system alone
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Forecasts of $18B capital revenue over 20-years
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 Need revenue source(s) that mitigate inflation risk
 Deferred preservation of roads and bridges increases life cycle costs
 Federal fiscal outlook increases state’s risk and responsibility

20 Year Funding Needs
System/Mode
Economically Competitive
FUNDING GAP
State Highway System*
(Includes bike and pedestrian needs)
County State Aid System
County System
Township Roads
Municipal State Aid System
Municipal System
Greater Minnesota Transit
Metropolitan Area Transit
Passenger Rail
Freight - Rail and Ports
State Airports
Metropolitan Airports
Commission
Totals
$10.0 - 12.0
$500 mil- $600 mil AFG
$9.0
$450 mil AFG
$9.0
$450 mil AFG
$0.5
$2.0
$100 mil AFG
$8.0
$400 mil AFG
$0.9
$45 mil AFG
$4.2
$210 mil AFG
$5.0 - 7.0
$250 mil -$350 mil AFG
$0.6
$30 mil AFG
$0.8
$40 mil AFG
$0.6
$30 mil AFG
$50.6 -$54.6
Source: TFAC 2012

Metro Area Multimodal Vision
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Life Cycle

25%
20%
15%
10%
5%
0%
2012 2013 2014 2015 2016
Debt Service Debt Limit
2017 2018 2019
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ROI 2.5
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Active Traffic Management
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General Congestion Mitigation
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Safety Spot Improvements
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Source: Smart Growth America Report

MnDOT is replacing or rehabbing 172 Bridges
Large-Scale Bridge Projects Shown – total costs are estimated
Desoto (TH 23) in St. Cloud over the Mississippi River (complete) – $39M
Robbin-Drayton (TH 11) of the Red River (complete) – $16.5M
Hastings (US 61) over the Mississippi River (underway) – $147.8M
Lafayette (US 52) in St. Paul over the Mississippi River (underway) – $172.4M
St. Peter (TH 99) over the Minnesota River (underway) – $3.5M
Dresbach (I-90) over the Mississippi River (underway) – $212.8M
Cayuga (I-35E) in St. Paul over Cayuga Street (underway) – $194.2M
St. Croix Crossing (TH 36) over the St. Croix River (underway) – $280M to
$310M
Winona (TH 43) over the Mississippi River (beings 2015) – $158.6M
Sorlie (US 2B) in East Grand Forks over the Red River (begins 2017) – $45.5M to
$61.5M
Baudette (TH 72) over the Rainy River (begins 2017) – $59.8M to $79.7M
Red Wing (US 63) over the Mississippi River (beings 2017) – $160M to $240M
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New Ulm (TH 14) over the Minnesota River (begins 2017) – $44.1M to $51.4M

MnDOT is completing other projects as well
Major Projects Utilizing Chapter 152 Bonds Shown – total costs are estimated
TH 55 Pavement Improvement from near Kensington to Glenwood - $11.8M
TH 60 two-to-four-lane conversion from Bigelow to Worthington - $68.9M
TH 169/I-494 Interchange - $170.0M
I-90 Concrete Overlay East of Rochester - $16.3M
I-35 Concrete Overlay from near Sturgeon Lake to Mahtowa - $17.3M
TH 11 Pavement Improvement from Frontier to Indus - $15.1M
TH 23 Mill and Overlay from Russell to Marshall - $21.7M
I-35 Bridges in Duluth - $88.6M
I-94 Interchange at Albertville - $11.3M
I-94 Lowry Hill Tunnel to John Ireland Blvd - $28.0M
US 169 Brooklyn Park - Interchanges, Bridges, etc. - $58.6M
Better Roads Program example - I-35 Maryland to University - $111.0M
Flood Mitigation example - Realign Hwy 75; new bridge near Kent - $10.4M
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Performance-based design projects (Hwy 169/494, TH100 near Hwy 7)
MnPASS Lanes
Innovative Construction Methods – Maryland & Hastings Bridges
 Both projects benefited from ‘08 (Chapter 152) funding
HASTINGS BRIDGE: $120M. New bridge was built next to the old structure to keep the river crossing open to travelers and avoid a 47-mile detour.
Original bridge Float down the river 9/12/12
Lifted into place 60 hours later
Completed bridge
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MnDOT runs the equivalent of a multi-billion dollar project execution and services business
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Focused on being effective, accountable, transparent and efficient
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 Addresses inflation risk
 Upholds tenets of user pay
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 Apply general sales tax rate to wholesale gas receipts to hedge against inflation?
 Restructure Tab Fees?
 Redirect sales tax collected on leased vehicles; auto parts, etc. to non-trunk highway transportation needs?
 Next generation revenue sources?