Highway 5 Phase II Reconstruction
Funding Requested: $4,700,000
Total Project Cost: $18,100,000
Project Summary:
The City of Waconia is seeking $4.7 million in CPF funds for the Highway 5 Phase II Reconstruction Project between Olive Street and Main Street within the city. Having secured federal and state funds for the trunk highway elements of this project, FY25 Community Project Funding will be utilized on a south frontage road extension, expanded public utilities, and improve Hartmann Drive. These improvements are necessary to open 40 acres for economic development, which will generate up to 150 new jobs, an estimated $10 million in annual income and a $5 million increase in property and tax revenues.
Background Information:
The project will preserve the previous $18 million in city trunk highway investments. The city cannot continue to make this same level of local taxpayer investments into the state highway system. The city has worked hard to secure competitive funding to reduce the financial burden and has successfully committed 75% of the $18.1 million total project need. A CPF award would fill the final funding gap. As previously discussed, the new frontage road will support economic development and job growth that will result in an expanded city tax base. The recent small area plan confirmed the proposed transportation and utility infrastructure improvements are needed to allow 40 acres of industrial development to occur and that lower vacancy-rates in the southwest metro will encourage the estimated $19 million in private development investments. Safety and travel time reliability of regional traffic on Highway 5 is essential to the city and region’s economy and emergency services access. As a Tier III Regional Truck Freight Corridor, Highway 5 is intended for the movement of goods, people, and services through the region. The Metropolitan Council estimates that $200-$350 million in freight originates in Waconia annually. As a nationally top-rated facility, Ridgeview Medical Center provides care to over 300,000 people and employs over 2,300 healthcare professionals. Locally, the project will fill gaps in the city’s sidewalk and trail system that connects nearby neighborhoods with aged homes and apartment complexes providing affordable housing to daily needs and employers in downtown Waconia, just west of the project area.
Relevant Documents:
Estimated Start Date: 05/01/2026
Estimated End Date: 10/31/2027
Account: Highway Infrastructure Programs
Program: Highway General Fund Programs
Recipient Point of Contact: Shane Fineran
Recipient Legal Name: City of Waconia
Recipient Address:
201 South Vine Street
Waconia, Minnesota 55387
Is the funding requested by a governmental or non-profit organization?: Government