North Mankato Moving Forward With Public Works Facility Project After City Council Approves Funding

The City of North Mankato is providing an update on plans for a new Public Works facility following City Council action. On April 20, 2026 the City Council approved funding through the Port Authority’s General Obligation bonds with a 3-2 vote and awarded the $27,000,000 at an all-inclusive interest rate of approximately 4.16%.

The bond will finance construction of a new Public Works facility at the southeast corner of Timm Road and Rockford Road in upper North Mankato. The site was selected after evaluating more than 16 options, including options expanding the current facility, constructing a new building on the existing site, and purchasing existing buildings within the city.

Options at the current site were eliminated due to environmental costs associated with it being a former landfill. Options to purchase an existing building were also eliminated, as no available properties met the city’s operational needs. The Timm Road site was selected because it meets the current and future needs and is already owned by the North Mankato Port Authority.

Remaining steps include finalizing the Construction Manager’s Guaranteed Maximum Price proposal agreement, completing the property purchase, and obtaining necessary permits and approvals. Construction is expected to begin in July 2026, with completion anticipated in October 2027.
Plans prepared by the City’s hired engineering and architecture firms are available on the City’s website for those interested in reviewing additional details.

Background and Facility Conditions

The current Public Works facility, located on Webster Avenue, is a steel frame and sided structure built in 1975, with additional wood frame cold storage and salt storage buildings added in 1982 and 1983. These facilities were designed for a community of 7,500-8,000 residents and have exceeded their typical 30-40-year operational lifespan.

The facility is located on a site of a former city landfill, which operated from the early 1950s until the early 1970s.
In 2018, methane gas concerns from decomposing materials beneath the site prompted environmental investigations and the installation of a retrofitted vapor management system. As part of the City’s 2019-2023 Capital Improvements Plan (CIP), a Public Works facility evaluation was completed in 2019. Since 2019, the new Public Works facility has been included in every annual CIP.

Between 2018 and 2025, City Council reviewed the facility’s physical condition, assessed operational needs, and discussed multiple options for repairs, expansion, or replacement during more than two dozen work sessions and regular meetings.

Financing and Legal Process

On January 5, 2026, the City Council approved the General Obligation bonds issued through the North Mankato Port Authority to finance the project. This method has previously been used for other city facilities, including the Library, Police Annex, and Fire Station #2.
A General Obligation bond functions similarly to a loan, repaid over time using property tax revenues. This financial approach is commonly used by cities and is structured to reduce borrowing costs. The City maintains an AA credit rating from Standard & Poor’s (S&P), the highest available for a community of this size.

The bond process was temporarily delayed by a lawsuit alleging the City’s use of the Port Authority did not meet statutory requirements. The case was dismissed in favor of the City and Port Authority, confirming the process met all statutory requirements.
For additional information about this project, visit: northmankato.com/PWfacility