$200 million more in Southwest light-rail funding approved

An additional $200 million is now available for construction work on the Southwest light-rail line, which is about halfway complete.

The funding infusion, which was originally committed by Hennepin County in 2018, is being tapped by the Metropolitan Council to bolster the transit project's dwindling contingency fund.

On Wednesday, the Met Council unanimously agreed to amend an existing funding agreement with Hennepin County adding the $200 million, following approval by the County Board last week. It's the seventh time the pact has been amended.

The extra money increases Hennepin County's financial commitment to up to $878 million, largely funded through a local transportation sales tax. The line, an extension of the existing Green Line, is slated to link downtown Minneapolis with Eden Prairie through St. Louis Park, Hopkins and Minnetonka.

The $2 billion project — the most expensive public works project in state history — has encountered unexpected costs that will likely inflate its current price tag, though it's unclear by how much.

"Obviously, when you build a project that is the largest in the state of Minnesota, things will happen," said Met Council Member Christopher Ferguson, noting the council will follow the project closely as "good stewards" of taxpayers' dollars.

The project's original $204 million contingency budget for unexpected costs has been depleted partly because of construction challenges in Minneapolis' Kenilworth corridor. About $51 million remains in the fund.

Work in the corridor has been complicated because freight and light-rail trains will share a narrow passage, along with a bicycle and pedestrian trail. The site is close to Lake of the Isles and Cedar Lake and several residential buildings.

Since breaking ground in 2018, 401 change orders have been approved, totaling $141 million. The Met Council has approved several change orders this summer.

On Monday, the council's Transportation Committee approved a change order of up to $30 million to cover a different method of excavation needed to build a tunnel for light-rail trains in the Kenilworth corridor. The new method to shore up the tunnel was necessary due to a "soil settlement" issue near the Calhoun Isles condominium complex, according to council documents.

In June, the Met Council approved a $24 million change order mostly covering the removal of contaminated soil from the 14.5-mile route, and another $1.75 million related to grouting in the tunnel.

Southwest project spokesman Trevor Roy said more changes related to the tunnel are expected due to "unforeseen conditions."

The situation has drawn the attention of two DFL lawmakers from Minneapolis, Rep. Frank Hornstein and Sen. Scott Dibble. They recently requested that the Legislative Auditor's Office review the project's cost overruns, delays and overall management.

The office hasn't made a decision on whether to conduct a review, according to Joel Alter, director of special reviews.

Janet Moore • 612-673-7752

Twitter: @ByJanetMoore