Purpose

• Provide capital funding for a new interchange at marked Trunk Highway 36 and Lake Elmo Avenue in Washington County.
• Achieve this by appropriating money for a grant to the City of Lake Elmo to acquire property and to predesign, design, construct, furnish, and equip the interchange.
• Use bond financing to cover the project, with the city’s share eligible to be funded by general obligation bonds.

Main Provisions

• Subdivision 1 (Appropriation): $5,000,000 is appropriated from the bond proceeds account in the State Transportation Fund, per Minnesota Statutes section 174.50, to the commissioner of transportation for a grant to the City of Lake Elmo. The grant covers property acquisition and to predesign, design, construct, furnish, and equip a new interchange at TH 36 and Washington County State Aid Highway 17 (Lake Elmo Avenue) in Washington County. This appropriation is for the city’s share of the project that is eligible to be funded with general obligation bonds.
• Subdivision 2 (Bond Sale): To fund the appropriation, the commissioner of management and budget must sell and issue bonds of up to $5,000,000 from the bond proceeds account in the State Transportation Fund, under the terms and effects described by Minnesota Statutes sections 16A.631 to 16A.675 and by the Minnesota Constitution, Article XI, sections 4 to 7.

Financing & Bonding

• Source of funds: bond proceeds account in the State Transportation Fund.
• Financing mechanism: sale and issuance of state bonds up to $5,000,000.
• Government role: the Commissioner of Management and Budget is responsible for issuing the bonds.
• Legal framework: bond sale and related procedures governed by Minnesota Statutes 16A.631-16A.675 and Minnesota Constitution Article XI.

Changes to Existing Law

• Establishes a new appropriation and bond authorization for this transportation project.
• References existing statutes and constitutional provisions for how the bonds are issued; does not modify tax rates or general budgeting rules beyond enabling this specific funding.

Significance/Impact

• Enables construction and related activities for a new interchange, potentially improving traffic flow and accessibility in Lake Elmo and surrounding areas.
• Uses general obligation bonds to finance the city’s share, aligning with statewide financing mechanisms for transportation infrastructure.

Relevant Terms - Lake Elmo interchange, Trunk Highway 36, Lake Elmo Avenue, Washington County State Aid Highway 17 - City of Lake Elmo - Property acquisition, predesign, design, construct, furnish, equip - Bond proceeds account, State Transportation Fund - General obligation bonds - Bond sale, Commissioner of Management and Budget - Minnesota Statutes 174.50, 16A.631 to 16A.675 - Minnesota Constitution Article XI, sections 4 to 7