A loan agreement with the federal government could help facilitate the completion of long-sought improvements to a dangerous stretch of southern Minnesota highway.
The new law, effective March 18, 2020, authorizes the state to enter into a loan agreement with federal authorities — and creates a new account for loan repayment — in order to expand a stretch of U.S. Highway 14 between Nicollet and New Ulm from two lanes to four. It is the final un-widened stretch of the highway between the cities of New Ulm and Rochester, and will mark the culmination of a years-long effort by local officials and safety advocates along its route.
Sponsored by Sen. Nick Frentz (DFL-North Mankato) and Rep. Jeff Brand (DFL-St. Peter), the law dictates that fees from certain overweight or oversize vehicle permits will be placed in a special revenue account established under the law, and will be used to repay the loan.
In effect, the new legislation replaces a 2010 law that authorized the Department of Transportation to apply for a loan under the federal Transportation Infrastructure Finance and Innovation Act. The loan is not considered public debt.
HF3977/SF3878*/CH69