MOORHEAD - It's full speed ahead for the long-anticipated underpass near Moorhead High School now that City Council members signed off on agreements without adopting special assessments-yet.

On Monday, June 4, the council unanimously passed resolutions with MnDot, BNSF and Otter Tail Valley railroad tracks. The lowest bidder for the $66 million project, Burnsville-based Ames Construction Inc., was awarded the contract and will start work on the three-year project this summer.

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During the first two years, the busy intersection will be closed to most or all movement. In the final year of construction, First Avenue South would bear the primary travel impact as crews create a new track, called a "wye," that will eliminate delays at downtown crossings.

Ames' bid came in at about $51.7 million for the project, while the city estimated the project to cost about $43 million. As a result of the large difference, the city successfully pursued an additional $6 million from the state capital bonding bill the governor signed last week.

Last year the state allocated $42 million toward the project, so now about 75 percent of the underpass is being funded by the state.

But with a remaining $7.4 million gap, the city is considering specials.

Resolutions passed Monday preserve the opportunity for the city to bond for local costs and to special assess a portion of those costs. The special assessment district includes 3,360 parcels and is bound by Eighth Avenue North, 12th Avenue South, the Red River on the west and 28th Street North on the east.

Current assessment estimates vary by parcel size and would be paid over the course of 20 years. Those with 1 acre or less are expected to pay between $315 and $355. Those with more than 5 acres could be assessed between $710 and $2,520.

Staff said they will continue to explore alternative funding sources to reduce or eliminate the use of specials. However, given the "magnitude and complexity of this project," city engineer Bob Zimmerman said it is an essential financing tool to address unforeseen issues throughout construction.

More information on the underpass project is available on the city's website, www.cityofmoorhead.com, by searching for "SE Main Ave."

Also on Monday, the council gave its full support to applying for a U.S. Department of Transportation grant that has more than $1.5 billion available for eligible projects. Funds are awarded on a competitive basis and range from $1 million to $25 million.

MnDot reached out to the city to partner in submitting a grant application for the 11th Street underpass project, which, similar to the Main Avenue underpass, would improve safety and ease traffic congestion.