SF611

Purpose

This bill proposes to fund a segment of the Mesabi Trail by relocating a portion of the trail and adding a pedestrian bridge. It directs state money to address a permanent road closure, and it outlines how the project will be financed through bonds.

Main Provisions

• Subdivision 1 – Appropriation:
  • Provides $3,000,000 from the bond proceeds fund.
  • This money goes to the commissioner of natural resources as a grant to the St Louis and Lake Counties Regional Railroad Authority (RRA).
  • The grant funds predesign, design, engineering, and construction of a Mesabi Trail segment, including a pedestrian bridge.
  • The project is to relocate a Mesabi Trail segment because County State Aid Highway 102 is permanently closed in the city of Mountain Iron.
• Subdivision 2 – Bond sale:
  • Allows the state to sell and issue up to $3,000,000 in bonds to fund the appropriation.
  • Bonds are issued under Minnesota law (statutes 16A631 to 16A675) and the Minnesota Constitution (Article XI, sections 4 to 7).

Impact and What This Changes

• Provides a dedicated funding pathway for relocating a Mesabi Trail segment and adding a pedestrian bridge.
• Uses state bonds to finance the project, rather than relying on other appropriations.
• Transfers funds to the state’s natural resources agency (DNR), which then grants the money to the regional railroad authority to complete the work.

Financial Implications

• A new debt obligation of up to $3,000,000 is authorized to fund this project.
• The appropriation comes from the bond proceeds fund, with repayment and other bond terms governed by existing state law and constitutional provisions.

Implementation Details

• Recipient: St Louis and Lake Counties Regional Railroad Authority.
• Purpose of funds: predesign, design, engineering, and construction of the trail segment and pedestrian bridge.
• Reason for relocation: permanent closure of County State Aid Highway 102 in Mountain Iron necessitates moving the trail.

Relevant Terms Mesabi Trail St Louis and Lake Counties Regional Railroad Authority (RRA) County State Aid Highway 102 (CSAH 102) Mountain Iron pedestrian bridge predesign design engineer construct bond proceeds fund bond sale / bonds Minnesota Statutes 16A631 to 16A675 Minnesota Constitution Article XI sections 4 to 7 appropriation grant