Contents

Executive Summary ................................1

Introduction .................................................2

Operating Plan ...........................................4

System Connectivity ...............................5

Project Benefits ..........................................6

Economic Growth ....................................7

Infrastructure Improvements ............9

Quality of Life .......................................... 11

Next Steps ................................................. 12

For More Information ......................... 13

Superior, WI

Hinckley, MN (Photo courtesy Tim Kiser)

Duluth, MNMinneapolis, MNTarget Field, Minneapolis, MN(Photo courtesy Randy Stern)

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 1

⬈ Executive Summary

Preliminary analysis has determined that the Northern Lights Express (NLX) can improve the level and quality of passenger rail service in Minnesota by offering a safe, reliable, and frequent service between the cities of Minneapolis, Coon Rapids, Cambridge, Hinckley, Superior, and Duluth.

NLX HighlightsLength of Project 152 miles on existing BNSF Railway track Number of Stations 6 stations, plus layover facilities and a maintenance facilityFrequency 4 trains per day in each directionSpeed Up to 90 miles per hourTravel Time About 2 1/2 hours travel time between the Twin Cities and the Twin PortsImplementation Cost $500-$600 million

Operating CostIn the range of $17.5 million per year average for the first 5 years of operation

Revenue from FaresIn the range of $12.8 million per year average for the first 5 years of operation

Ridership 700,000-750,000 annual rides in 2020, anticipated to increase to 900,000-1,000,000 rides in 2040

New Job-Years3,100 jobs annually during construction and an average of 380 jobs annually during first 5 years of operation

A Tier 1 Environmental Assessment (EA) completed in August 2013 evaluated impacts of the project as a whole, compared multiple corridor alternatives, and resulted in the selection of a preferred corridor with an operating plan of 8 trains per day in each direction at speeds up to 110 miles per hour (MPH). Since the completion of the Tier 1 EA, the NLX project was subjected to a more detailed and in depth review. A preliminary benefit-cost analysis has determined that the most cost-effective operating plan is 4 round trips at a maximum speed of 90 MPH.

Northern Lights Express Service Plan | 20162

NLX will improve transportation service and the quality of life in Minnesota by providing:

▹ A safe and reliable travel alternative to serve business and tourism between Minneapolis and Duluth

▹ Improved freight safety and movement

▹ An alternative to auto and air travel that is convenient, less stressful, and allows passengers to work, socialize, read, and enjoy other activities while traveling

▹ A viable transportation option for non-drivers or for those who prefer the convenience of passenger rail

▹ More jobs and tax revenue

▹ Station-area investments such as pedestrian improvements and transit-oriented development opportunities that create compact, livable, and walkable communities

⬈ Introduction

The Northern Lights Express (NLX) is a proposed high-speed intercity passenger rail project that would provide service between Minneapolis and Duluth. The NLX project would operate on 152 miles of existing

BNSF Railway track. This project is led by the Minnesota Department of Transportation (MnDOT) in consultation with the Federal Railroad Administration (FRA) and with cooperation from the Minneapolis-Duluth/Superior Passenger Rail Alliance (Alliance), Wisconsin Department of

Transportation (WisDOT), and local communities.

LAKE SUPERIOR

ST. LOUIS

C ARLTON

PINE

DOUGLAS

K ANABEC

ISANTI

ANOK A

HENNEPIN

WI S

CO

NSIN

MIN

NESOTA

35

35

65

Duluth

Superior

Hinckley

Cambridge

Coon Rapids-Foley

Minneapolis

The purpose of the NLX is to provide an alternative travel option between Minneapolis and Duluth that is safe, reliable, and frequent.

Proposed corridor alignment with stations

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 3

⬈ Preferred Alternative

The NLX project includes

6 STATIONS,LAYOVER FACILITIES, AND A MAINTENANCE FACILITY.

Uses 152 miles of existing track to connect rural, small urban, and major metropolitan areas

NLX will provideCONNECTIONS to bus lines, bike trails, Northstar Commuter Rail,

Blue Line Light Rail Transit (LRT), GREEN LINE LRT, Amtrak intercity rail service, future high-speed rail service to Chicago,

AND OTHER INTERMODAL opportunities at new stations.

Modern train equipment operating at speeds up to

90 miles per hour.

NLX PROJECT WILL PROVIDE capital investments in rail infrastructure to improve passenger and freight rail SAFETY AND RELIABILITYon shared track.

Next Generation High-Speed Locomotive

Travel time between the

Twin Cities and the Twin Ports

will be about 2 1/2 hours.

Northern Lights Express Service Plan | 20164

⬈ Operating Plan

The NLX operating plan optimizes the relationship between service levels, estimated ridership, and revenue generated. A preferred corridor was selected in 2013 based on the Tier 1 Environmental Assessment with an operating plan of 8 trains per day in each direction at speeds up to 110 MPH. Preliminary benefit-cost analysis in 2015 has determined that the most cost-effective operating plan is 4 round trips per day at speeds up to 90 MPH.

For the first 5 years, operating costs are expected to average in the range of $17.5 million per year, with anticipated revenue from fares of approximately $12.8 million average per year. For planning purposes, it has been assumed that the one-way fare between

Minneapolis and Duluth will be approximately $30, but further analysis of fares will be part of the Financial Plan. MnDOT policy will be to set fares to maximize revenue. The annual subsidy is expected to decrease over time as fare levels are fine-tuned to respond to the

maturing passenger rail market.

Next Generation High-Speed Locomotives

Proposed NLX Schedule: 4 Round Trips at 90 MPH

7003 7007 7009 7013 Station 7002 7006 7010 70144:57 7:17 12:34 5:14 Duluth Union Depot 11:18 2:18 7:58 11:435:13 7:33 12:50 5:30 Superior 11:02 2:02 7:42 11:276:14 8:34 1:51 6:31 Hinckley 9:56 12:56 6:36 10:266:44 9:09 2:26 7:06 Cambridge 9:26 12:26 6:06 9:567:11 9:36 2:53 7:33 Coon Rapids 8:59 11:59 5:39 9:297:30 9:55 3:12 7:52 Target Field Station 8:40 11:40 5:20 9:10

2h 33m 2h 38m 2h 38m 2h 38m Trip Time 2h 38m 2h 38m 2h 38m 2h 33m

TRAINREAD DOWN

READ UP

TRAIN

PM times in bold

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 5

NLX STATIONS WILL CONNECT and be accessible through multiple modes of transportation

NLX will have stations at Target Field (Minneapolis), Coon Rapids, Cambridge, Hinckley, Superior, and Duluth (Depot) with 4 trains per day in each direction

Amtrak Surfliner (Photo courtesy Patrick Todd)

⬈ System Connectivity

To Twin Ports

To Big Lake

Target Field StationUnion DepotNorthern Lights Express

Northstar LineBlue LineGreen LineRed LineOrange LineGold LineArterial BRTMode and alignment not yet specifiedRegional Multimodal Hub

Midwest Regional Rail System Plan

Minneapolis-St. Paul

Chicago

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Preliminary analysis demonstrates that NLX can provide a safe, reliable, and frequent travel alternative to both air and auto transportation. Businesses that rely on freight service can experience heightened efficiency through improved freight movement. The preliminary project benefits described in dollar amounts are based on 2014 dollars, discounted at 7% over a 40-year analysis period.

⬈ Project Benefits

NLX will provide safe, reliable, and frequent service to events and destinations, such as professional sporting events in the

Twin Cities and Grandma’s Marathon in Duluth.

Project Benefits Benefits in Millions (2014 $)

SafetyReduced Highway Fatalities and Crashes $70Reduced Crashes at Grade Crossings $95

Total Safety Benefits in the range of $165Environmental SustainabilityEmissions Savings and C02 Reductions (auto) $25Emissions Savings and C02 Reductions (trains) $22

Total Environmental Sustainability in the range of $47Economic CompetitivenessTravel Cost Savings $46Productivity Savings $36Hwy 65 Marginal Congestion Savings $57I-35 Marginal Congestion and Crash Benefit $2Operating Costs Savings (train) $17

Total Economic Competitiveness Effects in the range of $158Quality of Life and Other EffectsProperty Premium $136Residual Value of New Infrastructure $7

Total Quality of Life and Other Effects in the range of $143

PROJECT BENEFITS

Safety Environmental Sustainability

Economic Competitiveness Quality of Life

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 7

FISCAL GROWTH

▹ Construction and operation of NLX will increase income, retail sales, and property tax base

▹ Over a 40-year period, NLX will generate in the range of $355 million in taxes

▹ Combined, the first year of construction and the first year of operation will increase state and local tax revenue in the range of $16 million

Based on a preliminary return on investment analysis, the results show a positive return on investment.

Birdseye Looking - Looking SoutheastExhibit

3Hinckley Downtown StationNorthern Lights Express (NLX)

8/28/2015

Rendering of a typical NLX station, birdseye view looking southeast

⬈ Economic Growth

Preliminary analysis shows that NLX will support existing industries and the growth of new businesses by improving access between communities, creating more temporary and permanent jobs, increasing tax revenue, and fostering tourism activity throughout the corridor.

Economic Growth

Fiscal Growth

Job Growth

Economic Development

Tourism Increase

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ECONOMIC DEVELOPMENT

▹ NLX will foster economic growth around each of the stations located near Target Field in Minneapolis, the existing Depot in Duluth, and at stations in Coon Rapids, Cambridge, Hinckley, and Superior

▹ The new service, along with stations and passenger activity, will result in increased property values, increased investments, and station-related development

NLX is expected to generate in the range of $136 million in increased

property values.

JOB GROWTH

▹ Preliminary analysis shows that construction and operation of the NLX will support an estimated increase in employment in the range of 3,100 jobs annually during construction and an average of 380 jobs annually during the first 5 years of operation

▹ It will support and encourage existing and new businesses along the corridor from Duluth to the Twin Cities and will provide employees with a reliable and cost-effective way to get to and from work

NLX will broaden the labor market and connect workers to a wider network

of employers.

TOURISM INCREASE

▹ NLX will foster tourism activity and special event attendance in the corridor

▹ Tourism includes people traveling to the Duluth and Superior portions of the corridor for vacations, traveling to the Hinckley area for activities and events at the Grand Casino, and traveling to Target Field and other sports and entertainment facilities in the Twin Cities

NLX will result in tourism revenues in the range of $378 million, which will

support about 10,600 total job years and wages in the range of $233 million

over a 40-year period.

Economic Growth, continued

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⬈ Infrastructure Improvements

Rail Corridor

The total implementation cost of NLX is estimated between $500-$600 million. Because NLX will operate primarily on existing track owned by the BNSF Railway, that is in excellent condition, the implementation costs are lower than for many other passenger rail services in the United States.

The following project elements support NLX service:

▹ Safety improvements at highway/railroad grade crossings

▹ Track and signal improvements to increase train capacity

▹ Track improvements to increase passenger train speed to 90 MPH between Coon Rapids and Superior

▹ Stations

▹ Maintenance and layover facilities

▹ Locomotives and coaches

▹ Professional services such as final design, construction management, testing, and commissioning

▹ 25% contingency

Total Implementation Cost of $500-600 million.

Northern Lights Express Service Plan | 201610

Infrastructure Improvements continued

Improved Rail Grade Crossing

FREIGHT BENEFITS

▹ Upgraded crossings

▹ Improved speed, reliability, and safety of freight movements

▹ Decreased emissions

▹ Benefits related to freight operations throughout the state

▹ More efficient business

▹ Benefits to shippers

▹ Reduced blocked crossing incidents

Additional rail capacity brings the value of improved freight movement and

more efficient business.

GRADE CROSSING IMPROVEMENT BENEFITS

▹ Safety benefits for auto and freight users

▹ Upgraded crossings

Grade crossing improvements reduce crashes for both trains and autos.

Existing Rail Grade Crossing

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 11

⬈ Quality of Life

NLX will result in environmental sustainability benefits. Emissions savings and CO2 reductions are in the range of $47 million resulting in an overall positive impact on the quality of life in the communities it serves.

ENVIRONMENTAL

▹ NLX will result in improved air quality and reduced fuel consumption due to a shift in use from automobiles and airplanes to trains, which generate fewer air pollutants

▹ Since NLX operates on existing track, it also can potentially reduce environmental impacts on sensitive habitats and water resources (floodplains, streams, and wetlands) by reducing the need to expand highways or airports

QUALITY OF LIFE

▹ NLX will have a positive impact on the quality of life in the communities it serves by improving transportation choices, bringing jobs, fostering new growth, adding money to the local economy, and improving the local tax base

Warming Shelter - Looking SouthExhibit

5Hinckley Downtown StationNorthern Lights Express (NLX)

8/10/2015

Total air pollution benefit due to diverted auto trips to rail is approximately $25 million over 40 years.

Rendering of a typical NLX station, warming shelter, looking south

Northern Lights Express Service Plan | 201612

⬈ Next Steps

MnDOT is currently conducting preliminary engineering and completing the Tier 2 project level environmental review. Further coordination is taking place with FRA and BNSF Railway to continue to evaluate the benefit-cost analysis. This phase of the NLX project will be completed in early 2017. MnDOT, in consultation with NLX project partners, will prepare a Financial Plan that outlines the federal and state funding required to advance the project as well as the manner in which the operating subsidy will be funded. If funding is available in a timely manner, service could begin as early as 2020.

Schedule Timeline2015 2016 2017 2018 2019 2020

Tier 2 Project Level Environmental Review &

Engineering (1.5 years)

Public Engagement (Ongoing)

Final Design and Construction (2.5 years) Testing OperationWE ARE HERE

SERVICE STARTS JAN. 1, 2020

Building a Stronger Economy and Intercity Connections with High-Speed Rail | 2016 13

To submit questions or provide comments, please contact:

Minnesota Department of Transportation 395 John Ireland Blvd, Saint Paul, MN 55155

www.mndot.gov/nlx nlx.dot@state.mn.us

Frank Loetterle NLX Project Manager francis.loetterle@state.mn.us

((651) 366-3194

Bob Manzoline Executive Director, NLX Alliance bmanzoline@rrauth.com

((218) 744-2653

This document was prepared by the Alliance in cooperation with MnDOT.

⬈ For More Information

Rendering of a typical NLX station, birdseye view looking northeast

rev. 08.02.16