The Minnesota Department of Transportation is considering granting a private company exclusive rights to lease air space on highways for an elevated high-speed rail line from Rochester to the Twin Cities.
The North American High Speed Rail Group is seeking MnDOT Commissioner Charlie Zelle's approval for exclusive negotiating rights for two years for portions of I-494, Minnesota Highway 55, U.S. 52, U.S. 63 and Interstate-90, according to documents obtained by the Post-Bulletin from MnDOT under the Minnesota Government Data Practices Act.
The company estimates the project would cost $4.2 billion to build. A sizable amount of that money — $1.4 billion — would come from Chinese investors, according to the documents. North American High Speed Rail Group Chairman Joseph Wang formerly worked for China's Ministry of Commerce. The company's business plan states the Minnesota rail project would be "the first in the U.S. to leverage a relationship with China in the (high-speed rail) market."
The rail group's spokeswoman, Wendy Meadley, said China is widely considered to have some of the best high-speed rail technology in the world.
"High-speed rail is a technology (the Chinese) are looking to export, so there is an opportunity there to explore with them. We've talked to a handful of European countries as well. Our vision is to take whatever foreign technology expertise and Americanize it and create a brand new set of intellectual property," Meadley said.
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The most recent draft of a letter discussing MnDOT's possible agreement with the rail group states that the company requested the exclusive rights as it "evaluates the feasibility of its project" and states that MnDOT "will refrain from developing a lease of this corridor for passenger rail with other parties."
Meadley said the agreement would enable the company to continue studying whether it is feasible to build an elevated, high-speed rail line from Rochester to the Twin Cities that is funded entirely with private dollars.
"We need that in order to have Minnesota (investors) and other investors get involved because they have to invest in something. And all we're simply trying to do is ensure investors that Minnesota is willing to explore this possibility. That is all we're trying to do," Meadley said.
MnDOT is in the midst of a Tier 1 Environmental Impact Statement of the high-speed rail corridor, known as the Zip Rail project. Meadley has said that while the proposed elevated rail line would be along the same corridor as the proposed Zip Rail line, the project would be very different. If the project moves ahead, the group plans to change the name of the rail line.
MnDOT and the rail group are also working on a Memorandum of Understanding that would designate the rail group as the sole entity authorized to study, design, build and operate the proposed rail line.
MnDOT spokesman Kevin Gutknecht said neither the letter nor the memo have been signed and both are being evaluated by the department. He said this would be the first time MnDOT has entered into an exclusive air rights agreement with a private entity, although it does have one with the city of Minneapolis for a potential development above a parking garage. State law does allow the commissioner to lease air space rights, provided certain conditions are met. If a deal is reached, Gutknecht said the developer "would be expected to pay fair market value for the air rights."
Some surprised by news
News of the proposed agreements caught local legislators off guard. Mazeppa Republican Rep. Steve Drazkowski, a vocal critic of the proposed Zip Rail project, said he is deeply concerned that the state is considering granting these exclusive negotiating rights without allowing the public to weigh in.
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"This is covert behavior by government, and it is unacceptable, and I think the people should be alarmed," Drazkowski said.
Rochester DFL Rep. Kim Norton said she was not aware of the rail group's requests, but said it shows the private company is serious about moving ahead with the project.
"They are at least serious about trying to find out if the business model will work and if they can do it using current right of ways," Norton said. "I'm for letting them try. Go look at it, tell us if you can do it."
Speeds up to 280 MPH
Emails and documents obtained as part of the Post-Bulletin's data request provide more details about the proposed high-speed rail project.
The company is seeking to build an 84-mile elevated high-speed rail line that would run from Bloomington to Rochester. Top speeds for the trains could reach 260 to 280 mph, allowing passengers to get between the two cities in as little as 29 minutes.The company is considering running up to three trains per day and a possible stop in Dakota County. The plan also calls for developing real estate in connection with the rail line.
The preliminary route for the elevated rail line would start at 24th Avenue/Interstate-494 in Bloomington, run east on I-494 to Minnesota Highway 55, south to U.S. 52 through Rochester to Interstate-90. A possible alternative would be to U.S. 52 south through Rochester to U.S. 63, and then past the Rochester International Airport to Interstate 90.
Meadley said the process to get approval from the state for the exclusive negotiating rights has taken longer than the company had expected. As a result, company officials are looking at developing other rail corridors in the United States. She said the company has not talked publicly about its discussion with MnDOT out of respect for the process and is not trying to be secretive.
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Gov. Mark Dayton has not met with representatives of the North American High Speed Rail Group, according to governor's office spokeswoman Cambray Crozier.
Olmsted County Commissioner Ken Brown said he has not seen the letter or memo but he was told the rail group was working with MnDOT and the governor's office.
"As far as I know, they are keenly interested. They want to build this thing," Brown said. "So whatever agreement they reach with MnDOT and the governor is fine with me to get this thing built."
