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Page 2 <br />they view taking over an existing trail like a “turnback” where they would not accept it unless it <br />was reconstructed. An example provided was when MNDOT turns back a roadway to a county, <br />the roadway is either improved or funds are provided to improve the roadway. Hugo staff see it <br />differently and not analogous. If the state were to take over a county road and make it a part of <br />their overall state highway regional system, they would not ask the county to improve the <br />roadway or pay for the future improvements. Further, when the state has a turnback, they are not <br />asked to continue maintenance as the city would be responsible for with this trail. We believe <br />providing a route with right-of-way and existing 10-ft trail has tremendous value given the rail <br />corridor is expected to be active for the foreseeable future. They have also expressed that they <br />need to acquire right of way for their section of the trail and if unsuccessful they would have <br />invested in a trail that would not be part of their system. We have offered to fund the County <br />portion on our project and in turn reduce the amount the City owes as part of their project that is <br />proposed to be constructed in 2027; however, they cannot commit to that at this time. <br /> <br />The County has indicated that they do not have funds allocated for the trail as part of our 2026 <br />Bald Eagle Industrial Park Area Street Improvement Project and efforts to complete a joint <br />powers agreement have stalled. Washington County is not including the 140th Street or Fenway <br />Boulevard segments in their construction planning but have acknowledged they are necessary for <br />designation as a regional trail and to receive the awarded grant. Communication remains <br />excellent with County staff and both City and County staff are committed to continued efforts to <br />work through this matter. <br /> <br />As we near consideration of awarding a contract for the 2026 Bald Eagle Industrial Park Area <br />Street Improvement Project at the May 4th City Council meeting, it is apparent funding for the <br />Washington County portion of the trail will not be in place. <br /> <br />Both County and City staff believe the trail construction with our project will be substantially less <br />expensive than a future stand-alone project that would be required for both projects to be eligible <br />for regional trail status. 140th Street, Fenway Boulevard, and 130th Street will become a one- <br />way loop during our road construction, providing an already mobilized contractor with traffic <br />control already in place, ample room for construction of the trails without impacting businesses on <br />consecutive years. <br /> <br />Staff are looking for council feedback and authorization for staff to prepare and send a letter to <br />Washington County formalizing our position and requirements for pursuit of completing the <br />remaining section(s) of the regional trail. <br /> <br />Please contact me at 612.360.1278 if you have any questions or concerns. <br /> <br />Sincerely, <br /> <br />WSB <br /> <br /> <br /> <br />Mark Erichson <br />City Engineer <br />