Item Coversheet

Board Action Request

Item Description:
Funding commitment adjustments for the METRO Green Line Extension Project (CP #1005876) and related conditions



BE IT RESOLVED, that Hennepin County hereby agrees to increase its funding commitment for the capital costs of the METRO Green Line Extension Project (Southwest LRT) by $190,358,000, up to an amount not-to-exceed $592,953,000, which is in addition to the approximately $175 million of Counties Transit Improvement Board (CTIB) funding paid to the project since 2011 and is in addition to the approximately $42 million in cash remaining in the CTIB Depository Account, subject to conditions and provisions in the subsequent resolving clauses in this resolution; and


BE IT FURTHER RESOLVED that Hennepin County agrees to provide capital funding during the engineering phase, beyond the CTIB engineering funding commitment, with the terms and conditions of this additional engineering phase funding to be addressed through the grant agreement(s); and


BE IT FURTHER RESOLVED that Hennepin County’s funding commitment to the METRO Green Line Extension Project is subject to the following:

a) The conditions set forth in Hennepin County Resolution #17-0207 and in resolutions approved by CTIB, including Resolution #70-CTIB-2016, Resolution #44-CTIB-2016, Resolution #52-CTIB-2015, Resolution #49-CTIB-2014, and Resolution #71-CTIB-2012;
b) That all project contingency funds be managed pursuant to the revised Executive Change Control Board Operating Procedures attached as Exhibit A;
c) The additional project considerations, as attached in Exhibit B;
d) That project decision making proceed as set forth in Exhibit C;
e) FTA approval and execution of a Full Funding Grant Agreement in the amount of at least $928.8 million; and


BE IT FURTHER RESOLVED that Hennepin County’s funding commitment shall also be subject to the following: availability and provision of sufficient funding from proceeds of taxes authorized by Minnesota Statutes, section 297A.993 and associated financings; payment of the funding commitment in any year is subject to appropriation by the county; and the execution and fulfillment of grant agreement(s) by the Metropolitan Council; and


BE IT FURTHER RESOLVED that Hennepin County designates its two representatives to the Executive Change Control Board as the Board Chair and Public Works Committee Chair, with alternates to be further designated.


On May 15, the Metropolitan Council announced that costs for the METRO Green Line Extension project (CP #1005876) have increased by nearly $212 million, to a total project cost of $2.003 billion.

As a result, the council is requesting that the county provide an additional $190,358,000 in funding to the project, along with an additional $13,748,000 in funding from the Hennepin County Regional Railroad Authority (HCRRA). The remaining cost increase will be paid for by a combination of federal and local funding for the Eden Prairie Town Center Station.

Resolution 17-0207 on June 13, 2017 approved the assumption of certain unpaid funding commitments for the METRO Green Line project (CP #1005876), the assumption of the 2017 Capital Grant Agreement (CTIB #01-2017-01/Met Council #17I007) with the Metropolitan Council for the METRO Green Line Extension, and the imposition of the 0.5% sales and use tax and $20 motor vehicle excise tax (the “Transportation Tax”) that will be the primary source of funds for Hennepin County contributions to the project. Through these and other actions, the county agreed to take responsibility for the 30% share of project funding formerly committed by CTIB and the 10% share formerly anticipated from the State of Minnesota.

The council’s funding plan for the project continues to anticipate $928.8 million in federal funding for the project through the Capital Investment Grant Program, which is administered by the Federal Transit Administration (FTA). This amount was set by the council’s application for the project to enter the engineering phase of work. As a result, any additional increases in project costs must be covered by non-federal funding sources.

The council is preparing to submit an application to the FTA for a Full Funding Grant Agreement (FFGA) for the METRO Green Line Extension project in an amount of $928.8 million. As part of its application process, the FTA requires a financial capacity assessment and risk assessment to evaluate project readiness and the availability of local funding to match federal funding. These assessments require the council to demonstrate that all necessary local funds are committed and available to the project. The council has requested that the county consider its request for a funding commitment increase by the end of May in order to initiate these required FTA assessments in June.

The proposed resolution provides for an increased county contribution to the project in the amount requested by the council. The funding source for this commitment will primarily be the Transportation Tax. The county’s funding commitment is in addition to the approximately $217 million of funding provided to the project by CTIB through capital grants provided since 2011.

The proposed resolution also identifies a number of conditions on the county’s funding commitment. Attached to the proposed resolution are three exhibits detailing additional requirements for policymaker oversight through the Executive Change Control Board (Exhibit A), agreements as to how certain future funding requirements will be allocated between the Metropolitan Council, HCRRA, and Hennepin County (Exhibit B), and agreements as to additional county involvement in the day-to-day management of the project (Exhibit C). Finally, the proposed resolution identifies the receipt of federal funds in an amount of at least $928.8 million as a requirement for the fulfillment of the county’s funding commitment of $592,953,000.

DescriptionUpload DateType
Exhibit A5/25/2018Backup Material
Exhibit B5/25/2018Backup Material
Exhibit C5/25/2018Backup Material