Res 2017- 60 Supporting the City of WSP Request for State Funding Robert StreetCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2017-60
A RESOLUTION SUPPORTING THE CITY OF WEST SAINT PAUL'S REQUEST FOR STATE
FUNDING ASSISTANCE FOR ROBERT STREET RECONSTRUCTION COSTS
WHEREAS, between 2008-2010 there were 430 Crashes on the 2.5 mile State Trunk
Highway 952A (also known as Robert Street) corridor in West St. Paul, with 150 injury and 2
fatal crashes; and
WHEREAS, between 2006-2014 there were over 1,100 crashes on this corridor of which
9 were serious injury crashes, with three of those resulting in fatalities; and
WHEREAS, according to the Minnesota Department of Transportation, this corridor has
been consistently regarded as a high crash corridor; and
WHEREAS, the City of West St. Paul took on lead project management responsibilities
in order to initiate a state reconstruction project for State Highway 952A; and
WHEREAS, by virtue of the City of West St. Paul's project management on behalf of
the State of Minnesota, the cost to West St. Paul is currently projected to be $26.699 million,
with the total local project cost share at $299 Million, with the cost burden borne by the State at
$8,132,000 to reconstruct this State highway; and
WHEREAS, the City and State's shares of the costs of this project are 65% and 18%,
respectively; and,
WHEREAS, MNDOT has provided data which shows similar state highway projects
typically result in a much lesser local cost share (in the range of 16% of total project cost),
meaning that the difference between the Local Cost Share Burden on State Highway 952A and
the expected local cost share on similar projects is $22 Million, and
WHEREAS, the resulting debt incurred by the City of West St. Paul as a result of
moving this State Highway project to completion is projected at up to $1,900,761 annually,
which will result in a significant tax burden to their local property tax payers for the next
seventeen years, and
WHEREAS, there is substantial precedent for the State of Minnesota providing annual
funding contributions to Cities which have faced even smaller cost burdens from State Highway
and similar projects, and
WHEREAS, the City of West St. Paul is one of constrained property tax base, and, as
such, the disproportionate financial burden of this State Highway project is particularly onerous
to that City's fiscal health and to individual tax payers; and,
WHEREAS, the excessive local debt incurred will result in a significant tax burden for
every West St. Paul taxpayer for the next seventeen years; and
WHEREAS, alternatively, the State of Minnesota receives over $20 million annually in
sales tax and commercial property tax revenue from the businesses along the State Highway
952A corridor; and
WHEREAS, the redevelopment of commercial properties along State Highway 952A is
an additional burden taken on by the City of West St. Paul, from which every $15 million in new
commercial value creation is projected to increase State of Minnesota Sales Tax and Property
Tax revenues by $1 million per year; and,
WHEREAS, the City of West St. Paul is requesting funding relief from the State of
Minnesota for reconstructing this State Highway; and,
WHEREAS, a review of the sales tax transfer program of the State of Minnesota known
as Local Government Aid (LGA) reveals that similarly situated communities throughout the
State receive significantly greater LGA per capita on average than does West St. Paul; and,
WHEREAS, even increasing West Saint Paul's LGA allocation annually by $1 million
annually, similarly situated cities throughout the State would continue to receive significantly
more LGA per capita on average than would the City of West St. Paul, in spite of many of those
comparison cities having greater property wealth.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF MENDOTA HEIGHTS that they hereby concur with the City
of West St. Paul that the significant financial burden resulting from the reconstruction of this
section of a State Highway being placed on that City is unwarranted.
BE IT FURTHER RESOLVED that the Mayor and City Council hereby support the
request for funding reimbursement to the City of West St. Paul, from whatever source of funding
from the State of Minnesota as may be appropriate and available, so as to rectify the TH 952A
funding inequity.
Adopted by the Mendota Heights City Council this 1 St day of August, 2017.
CITY OF MENDOTA HEIGHTS
, � l�-�� .
Neil Garlock, Mayor
ATTES
Lorri Smith, City Clerk
Res 2017-60 pg• 2