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BEMIDJI — A federal funding freeze to an $18 million RAISE grant forced the Bemidji City Council to formulate a new plan as soon as possible to preserve its large-scale State Highway 197 project during Monday's impromptu work session.

City Engineer Sam Anderson presented two options for the council to choose from and after deliberation, the council supported Anderson's second option to keep the project moving forward, despite the unfortunate turn of events.

Anderson strived to preserve the scope and scale of the project despite its hurdles. The second option is no exception.

It utilizes a $5.2 million IIJA State Match grant to entirely fund the city's portion of the project over the course of two — rather than one — construction seasons, kicking off later this year.

The first construction season will focus on a single city project located at the intersection of Middle ÍáÍáÂþ»­ Avenue NW and 23rd Street NW, including the construction of a roundabout.

Courtesy / City of Bemidji

The projected completion of this project was initially slated for September, which could have potentially interfered with school traffic, something pointed out by Ward 1 Councilor Gwenia Fiskevold Gould. However, as the sole focus of one construction season, the roundabout should be completed before school kicks off in the fall.

The second construction season will come in 2026 and will see the city work on projects along Hannah Avenue NW, including a compact roundabout at the Burger King and Simonson's intersection.

Courtesy / City of Bemidji

A third construction season will focus on a project led by the Minnesota Department of Transportation. With the delay, MnDOT will have time to secure new funding — or wait for the potential reinstatement of the RAISE grant — in order to fund its portion of the project, which features three roundabouts on Highway 197 entering town from the west.

Courtesy / City of Bemidji

The new timetable sees MnDOT potentially starting its work at the end of 2026, with preparations before utilizing a full construction season in 2027. The city will enter a new Memorandum of Understanding with MnDOT, committing to the Highway 197 portion of work set at a later date once funding is sorted out.

Anderson further explained option two in depth while detailing some benefits.

"We've got a $5 million project that we otherwise couldn't fund as a community done and out of the way," Anderson said. "The other benefit is that we keep the timeline moving; we don't lose a complete, full year."

"Another pro: it gives us one more season to get people aware of what's going on," he later added.

Anderson also expressed his fears of choosing option one, which is to wait a year and see if the RAISE grant is reinstated.

"We're not getting anything from the federal government in terms of any timeline or any commitments to the (RAISE grant). Unfortunately, we're just running out of time to make a decision," he explained. "My fear is that if we wait and the RAISE grant were to disappear, my guess is that the state's is going to pull (the state match grant). That's my gut feeling.

"(With option two) we would actually go out for bid, award it to a contractor understanding that contractor is going to have to commit to two construction seasons. In the interim, if the RAISE grant is to work itself out, we can we get access to it ... as if it had been that way from the beginning. (As if) the funds were never frozen."

This plan is a far cry from the original, which had all work completed by the end of 2025. Despite this, the councilors still expressed a necessity to make progress this year as opposed to waiting, with all council members speaking in favor of option two.

"I still think that the food is at the trough and we should be there; we should grab it as soon as we can," Ward 5 Councilor Lynn Eaton said.

Ward 4 Councilor Emelie Rivera added, "I would agree that the funds are available and that we should move forward to prevent any opportunity to lose it in the future."

At-Large Councilor Audrey Thayer spoke in favor of the project despite not supporting the roundabouts.

"I have not been a strong supporter of roundabouts, but the constituents have," Thayer said. "I'm operating for the constituents, so I will support this opportunity too. Also because of (Anderson's) work and (the city's) hard working staff."

Fiskevold Gould was in favor because the first construction season would not interfere with the school year. She also pointed out how important it is to lock in the grant and use the money before inflation potentially increases costs in the future.

"I know there is no scenario where costs go down if we delay here; costs only ever go up," Fiskevold Gould said. "I think that option two sounds like the best option."

Mayor Jorge Prince also shared support while noting one upsetting reality of the new course of action.

"I don't want to just gloss over the fact that we're talking about three year construction periods, because I think that's something that needs to be noted," Prince said. "I probably agree with the majority of the council; this is probably the best alternative out of not the best alternative. So, I would support that option two as well."

Ward 2 Councilor Josh Peterson was the only council member to be on the fence. After deliberation, he made his decision.

"There were a lot of great questions asked here tonight and Sam, you've had a lot of great answers. So, I would be supportive of option two as well," he said.

While this choice allows the city to ensure the state match grant by moving forward, the council may ponder lessening it's landscaping plans in the future to save money.

With full council support secured, Anderson will finalize the plan and present it at the next council meeting for official approval.

The council will next meet at 6 p.m. on Monday, March 17, at City Hall for a regular meeting. All meetings can be viewed on the