With Northstar Commuter Rail likely to reach its end, cities on the train line want concessions

Anoka’s new vision for the area around its Northstar Commuter Rail station laid out plans for housing and businesses that could create jobs and more tax revenue.

But a few months after signing off on the plan, city officials heard the train line between Minneapolis and Big Lake would likely be shut down.

“This kind of turns all of that work on its head,” said Anoka Mayor Erik Skogquist.

The Minnesota Department of Transportation and the Metropolitan Council said in a joint announcement last month that the rail line, which has long failed to meet ridership expectations, could be shuttered and replaced with bus service. That has left some cities along the route scrambling, worried that businesses and resident services could take a hit.

Cities including Anoka and Coon Rapids were transformed to accommodate the line, with stations, parking, walkways and commuter crossings, and in Fridley, a pedestrian tunnel under the tracks. They’ve developed land around the stops with the rail service in mind, bringing in apartments and creating walkable areas.

Now if Northstar goes away, they want some concessions.

“We’re sad to hear it may end,” said Scott Hickok, community development director for Fridley. “But the conversations don’t end with whether the train runs or not.”

Officials say much of the development to serve the line came with long-term leases and complicated contracts that would need to be unwound. They also worry about ongoing maintenance of the infrastructure around their stations. And questions remain about who might take over ownership of land near stops that could otherwise be developed.

In addition to the transit announcement, state lawmakers are considering legislation that would end the Northstar.

The Met Council declined to comment beyond its Feb. 24 statement, which said, “As the world and consumer demand changes, we must be willing to be flexible and innovative to offer better service while saving dollars.”

Officials hope their cities will be included in discussions about the rail line’s future, including what significantly cheaper bus service as a replacement might look like.

“Each of the cities along the rail line have been in communication to discuss where do we go from here and how far do we push for assistance,” said Calvin Portner, Elk River’s city administrator. “What I see is everyone acknowledging that due to the ridership, it’s kind of a done deal. So what’s next?”

Fridley was excited to be a train station city.

The Fridley stop was a late addition to the plans for train service in the north metro in 2009 due to funding issues. Hickok said the city invested about $10 million, including to secure land for parking, to make it happen.

“We’re very happy with the outcome of the development that occurred as a result,” he said, adding that the pedestrian tunnel has become a crucial connection for residents.

The presence of the rail line has transformed how cities have developed their core centers, adding hundreds of higher-density housing units along the route.

Fridley added about 800 units from 2009 to 2023, according to a Met Council report. About half are senior housing and other apartments at the “doorstep of the train station,” Hickok said. Anoka and Coon Rapids brought in nearly 600 housing units around each of their stations.

Ramsey has seen the most development, with nearly 900 residential units and more than 1 million square feet in commercial and office space.

“Ramsey was the first one in Anoka County to do big development,” with apartments, a civic center, park and public amenities near its station, said Anoka County Commissioner Mike Gamache. “That has all been successful for them.”

Many of the cities created tax-increment financing districts to subsidize development, largely apartment buildings, next to their stations.

Portner said Elk River has added housing, “but never really saw the commercial [development] that I think was expected, which is disappointing.”

In Coon Rapids, city leaders said in a recent letter to state lawmakers and the Met Council that “the station has provided access to and from the Riverdale shopping center area, which is a major economic driver in our region.

“The loss of transportation options could further limit the ability for businesses in the Riverdale area to recruit and retain employees in an already challenging labor market.”

Since it began offering service in 2009, Northstar has struggled to attract the riders originally expected.

Many speculate its performance stumbled because the line ended in Big Lake, with 12,000 residents, rather than the much larger St. Cloud. There have been many attempts over the years to extend the line.

City officials also point to too few trips, commuter habits and a desire for the flexibility to get around the suburbs more easily in a car. Ridership plummeted by nearly 98% during the pandemic and has been slow to recover.

Total rides peaked in 2017 at more than 793,000. Last year, there were 127,000, according to Met Council data.

Big Lake recorded the most rides at its station last year, with more than 18,300, while Fridley saw the lowest at 4,700.

Anoka County leaders eventually became fed up with subsidizing the costly rail service. The county started refusing to pay the full amount requested by Metro Transit and instead threw in millions less. The county got off the hook for subsidizing the train a couple of years ago because of a change in state law.

Gamache said it’s unclear whether money never paid to Metro Transit could come back to haunt Anoka County if the line closes.

If the service shuts down, complex state, federal and BNSF Railway contracts would need to be resolved. It’s possible the federal government and state would ask to be reimbursed for outstanding costs.

While many have accepted the Northstar’s likely fate, others, including Skogquist, Anoka’s mayor, are pushing for it to stay open and be improved.

“You can’t disregard the numbers and the ridership, but the thing is, it’s a public service,” County Commissioner Mandy Meisner said. “What improves ridership is more rides and more locations.”

City leaders are asking for some guarantees if Northstar reaches its end, especially related to ongoing maintenance responsibilities and expenses around the rail line.

Skogquist said Anoka paid nearly $2 million to help build the $10 million ramp for rail commuters but has limited ability to use it, and it gets locked up during public events. He said the city owns the ramp, and a long-term lease to Met Council would need to be unraveled.

In Fridley, Hickok said city officials could be interested in taking over land owned by Metro Transit near the station so it can be developed. Meanwhile the city owns nearby land on which walkways and the station’s head house are located, property that’s leased to Metro Transit. That agreement would need to be addressed.

If train service goes away, city leaders are pleading for a strong replacement, such as bus rapid transit. Some worry about a bus route going along the train line, saying a lack of connection points to major thoroughfares wouldn’t make sense in many areas. They hope to influence where stops would be located.

Coon Rapids city leaders said in a letter they have “witnessed significant divestment in bus services and frequency of trips over the past years” and would need a high-quality bus service.

“Bus rapid transit would be more flexible from the standpoint of locations and times, so I think that’s a good answer,” County Commissioner Jeff Reinert said. “I think it will depend on how creative cities are that made those infrastructure investments and whether they can be intertwined with bus service. It doesn’t have to be a tragedy.”

Janet Moore of the Minnesota Star Tribune contributed to this story.