Project: Interchanges in Major Urban Areas - Bloomington, MN

1.0 Synopsis

This case study includes three interchanges in the city of Bloomington, Minnesota: I-494/US 169; I-494/SR 100; and I-494/STH 77. The US 169 and SR 100 interchanges on I-494 were constructed as part of the original I-494 construction; the interchange with STH 77 was constructed in the early 1990's as part of the Mall of America development. The areas near the I-494/US 169 and I-494/SR 100 interchanges were fully developed before construction, although the area near I-494/SR 100 has undergone redevelopment over the last several years, and more redevelopment is expected in the future. Some of the recent redevelopment has consisted of new office parks, and there are plans for hotel, high density residential development and other transit-oriented development.

The Mall of America was a $650 million, 4.2 million-square foot development that has generated 11,000 jobs and $55 million annually in state and local taxes. There are plans for a Phase II expansion that will add 5.2 million square feet of retail, office, entertainment, restaurant and high-density residential uses. Other transit-oriented development has been attracted to this area due to accessibility to the Hiawatha Light Rail system. The interchanges can be credited with 5,000 to 6,000 of the jobs created in the area.

2.0 Background

2.1 Location & Transportation Connections

Interstate 494 (I-494) is the southern and western portion of the I-494/I-694 beltway in the Twin Cities metropolitan area. I-494 goes through the northern edge of the city of Bloomington. The interchanges with both SR 100 and US 169 were built during the original construction of the highway, which was completed by 1985. The interchange with State Trunk Highway 77 (STH 77) was built in 1991 to serve the Mall of America.

2.2 Community Character & Project Context

The city of Bloomington is part of the Twin Cities metropolitan area in Hennepin County, Minnesota, and is located eight miles south of Minneapolis. In 1990, the city had a population of about 86,300, which declined to about 85,200 by the 2000 Census. Population has been growing slowly over the last few years, although at a slower pace than the population of Hennepin County. Population in the traffic analysis zones in the immediate vicinity of the interchanges has declined by 7.5 % between 2000 and 2006, based on data from the City of Bloomington 2000 and 2008 Comprehensive Plans.

Employment in the city of Bloomington increased by more than 34 % between 1990 and 2000, adding almost 26,100 jobs. This trend reversed between 2000 and 2006, when the city lost over 7,700 jobs. Employment in the vicinity of the I-494/STH 77 interchange grew by 20 %,while jobs at the two other interchanges declined by 13 % over the same period.

About 44 % of the city population is located in the zip code areas adjacent to the three interchanges. U.S. Census data shows that the median household income in the city declined by 3% (in real terms) between 1989 and 1999. Median household income declined similarly in the vicinity of the SR 100 and STH 77 interchanges, but increased near the US 169 interchange by more than $8,500 (in 1999 dollars). The median home value in Bloomington was estimated at $149,400 in 1999; home values near the interchanges were on average more than $14,000 higher.

3.0 Project Description & Motives

The US 169 and SR 100 interchanges on I-494 were constructed as part of the original I-494 construction project. In the late 1980's, the developer of the Mall of America approached the city of Bloomington, proposing a major retail center at the site of the old Minnesota Vikings football stadium, with the condition that an interchange be built between I-494 and STH 77. The city of Bloomington spent about $100 million to finance the interchange and infrastructure improvements. The Minnesota DOT repaid the city $50 million of the investment. The developer broke ground on the mall after the interchange was completed.

4.0 Project Impacts

4.1 Transportation Impacts

4.2 Demographic, Economic & Land Use Impacts

I-494/US 169 Interchange

The area in the vicinity of this interchange was fully developed before its construction. Within 1-2 miles south of the interchange, the area is characterized by single family housing. The northwest quadrant contains the training fields and offices of the Minnesota Vikings football organization, which predate the interchange construction. Natural features near the interchange limit the potential for additional development.

I-494/SR 100 Interchange

TheI-494/SR 100 interchange is in the Normandale Lakes district. Historically, land uses included commercial and industrial businesses. Most recent construction in the vicinity of this interchange is redevelopment, including two new office parks. Construction of a 332,000 square foot office park was completed in September 2008, and another office park (285,000 square feet) is under construction. Other planned developments include a 250-room hotel and an apartment building with 250 units. Some of the multifamily residential development east of the interchanges dates back to the 1960's.

About 9 % of the city's employment is located in the Normandale Lake district. From 1970 through 1985, there were about 1,130,000 square feet of office space in the area. An additional 1,690,000 square feet of office space has been added since then. There are several hotels within this district, totaling more than 474,200 square feet.

In May 2008, the City Council adopted the Normandale Lake District Plan. The City of Bloomington wants to locate higher density, transit-oriented uses and regional shopping destinations along the I-494 and American Boulevard corridor. The Normandale Lake district is the western-most portion of this corridor.

I-494/SHT 77 Interchange

The interchange between I-494 and STH 77 was specifically constructed to provide access to the Mall of America, which opened in 1992. There are some commercial and industrial uses to the southwest of the interchange, along with some older residential development further south. The Minneapolis International Airport is located in the northeast quadrant of the interchange.

The Mall of America is a retail, entertainment, and hotel development encompassing 4.2 million square feet. It cost $650 million to build, and employees over 11,000 people (increasing to 13,000 during summers and holidays.) In 2004, a 300,000 square foot Ikea opened as part of the Mall of America Phase II. According to its web site, the Mall of America has generated more than $800 million in total taxes over 16 years (1992-2007), and the annual economic impact is estimated at $1.9 billion. The Mall of America pays more than $55 million per year in state and local taxes, of which $1 million goes to the City of Bloomington's General Fund. Phase II of the Mall of America development will add 5.2 million square Feet (including the existing Ikea) of retail, office, entertainment, restaurant, and residential uses.

The southern terminus of the Hiawatha Light Rail system is at the Mall of America. The light rail has spurred transit-oriented development (TOD) at the Bloomington Central Station. Construction of a 17-story condominium tower with 267-units was completed in 2006. The city of Bloomington also built a $4 million city park as part of this development. Other planned development at this site includes 2.5 million square feet of office space, over 1,000 high-density residential units, a 375-room hotel, and 75,000 square feet of service retail. In total, the interchanges can be credited with 5,000 to 6,000 of the jobs created in their vicinity.

5.0 Non-Transportation Factors

In the case of the I-494 interchanges with US 169 and SR 100, development was already in place, and any development post-construction is the result of redevelopment.

Although the city of Bloomington had requested the interchange at I-494/SHT 77 in the past, the state claimed that traffic levels did not justify it. Therefore, the Mall of America proposal and demands for access by the developer, led to the construction of the interchange. The proximity to the airport and transit accessibility has also spurred development in the area.

6.0 Resources

6.1 Citations

6.2 Interviews

Organization

Footnotes