Federal stimulus money will help rebuild the Lowry Avenue Bridge

Super BABS are coming to the rescue of hard-pressed Hennepin County taxpayers.

The Hennepin County Board on Tuesday approved the use of Build America Bonds -- called BABS for short -- to help pay for construction of the Lowry Avenue Bridge in Minneapolis. The federal tax-credit bonding is expected to save county taxpayers $3 million to $5 million over what standard tax-exempt bonding would cost.

"Like stimulus money or not, at the end of the day, at least you have infrastructure in place," said County Commissioner Mark Stenglein, whose district includes the Lowry Bridge.

The BABS program was created last year under the American Recovery and Reinvestment Act, the Obama administration's economic stimulus package. So-called "super BABS" are designed for economic development "recovery zones" and offer the greatest savings for issuers.

The county board's action Tuesday creates a recovery zone that includes the bridge site, enabling the county to issue nearly $27 million in stimulus bonds for the $80 million project.

Dave Lawless, the county's finance director, said that the board will be asked to approve the bond issue this spring.

The balance of the funding will come from $27 million in state bonding and from the county.

The wall will have to be replaced sooner or later, Stenglein said, and it makes more sense to do it now while the new bridge is being built. If the county gets preliminary approval for the money, he said, it could issue bonds for the amount and finish the job.

A large crane is doing preliminary work at the bridge site linking north and northeast Minneapolis. Construction is expected to pick up steam as winter turns to spring.

The site was cleared last summer when the former bridge, parts of which dated back to 1905, was imploded and dropped into the Mississippi River.

The new bridge, a distinctive structure that will feature a pair of overhead arches, is scheduled to open in 2011.

Stenglein said the Lowry Bridge is an important north Minneapolis conduit for public safety and business. The amount of commerce using the bridge every year comes to $18 million, he said.