Rochester City Council Approves Higher Than Expected Bid for Link Bus Rapid Transit Project

Rochester, MN (KROC-AM News)- The Rochester City Council has approved a higher construction budget for the Link Bus Rapid Transit system. 

See Also: Rochester Man Loses Appeal in Sex Trafficking Case 

Rising costs have pushed the project’s cost to nearly $197 million, which is about $24 million over the initial $173 million budget. 

The cost increase comes from the so-called Volume C portion of the massive transit project, which is construction of 12 transit stations at seven stops on a route in and out of downtown Rochester and a pedestrian tunnel under 2nd Street Southwest next to St. Mary's Hospital. 

Rochester City Council Accepts Higher Than Expected Bid for Link Bus Rapid Transit Project

Elcor Construction submitted the lone bid for Volume C. It came in at more than $71 million, well over the $57 million estimate that city officials have now acknowledged was too low. 

A city analysis of the bid blames the higher-than-estimated cost on inflationary pressures, the impact of tariffs, the tight project schedule, labor shortages, and limited contractor competition. 

Get our free mobile app

City officials are also anticipating the trend toward higher costs will continue, and they do not believe rebidding would result in a lower price. 

Rebidding would also affect the project timeline, which currently indicates the new 2.8 mile public transit system will be operational in 2027. 

Federal funding rules are also blamed for inflating the cost of the transit system. The Federal Transit Administration, which is providing about $84 million in funding for the project, is requiring 13% of the project budget be earmarked for contingencies, according to the agenda item. 

The elected leaders voted unanimously Monday night to accept the higher than expected bid for Volume C. Council members also approved requesting Destination Medical Center (DMC) State and County Transit Aid dollars to cover the price hike. 

The DMC Board is set to vote on rewarding the extra money during a special meeting on Tuesday.

Correction: A previous version of this story said there were seven transit stations along the BRT route