City of North Mankato receives $3.3 Million for Highway 169 construction
The Minnesota Department of Transportation (MnDOT) has awarded the City of North Mankato $3.3 million for enhancements to the reconstruction of the Highway 169 corridor. MnDOT estimates it will spend at least $70 million to reimagine the stretch of Highway 169 from Highway 14 to the southwestern part of Mankato.
The funding comes from the state’s Surface Transportation Program (STP) – Small Urban as well as the MN Transportation Alternatives Solicitation. North Mankato will use the funds toward their portion of a new roundabout at the Highway 169/Webster Avenue intersection as well as a new bike and pedestrian underpass spanning the highway from Range Street to North River Drive. The $3.3 million award helps offset the nearly $4.8 million the City is budgeted to spend on the project overall.
“The award of these grant funds will enable residents and visitors to realize a unique opportunity to connect lower North Mankato with the beautiful Minnesota River, the Rex Macbeth Trail, and the businesses on the east side of Highway 169,” says Luke Arnold, North Mankato Public Works Director. “These funds will also support the development of a strong sense of place along this prominent entrance to North Mankato, featuring inviting amenities that will serve as a cornerstone to continue redevelopment of Webster Avenue and the Highway 169 corridor. We are excited to make this vision a reality for our residents while minimizing the impact on North Mankato taxpayers.”
The City’s overall financial share of the $70 million project is expected to be $4.8 million. The reconstruction of Highway 169 is scheduled to begin in 2027 and be completed in 2028.
Questions may be directed to Public Works Director Luke Arnold at 507-625-4141 or larnold@northmankato.com.

