City Council Meeting Date: February 10, 2026
To: Mayor and City Council
City Administrator
From: David E. Bennett, PE - Public Works Director/City Engineer
Title
Consider Resolution Supporting Further Exploration of Southeast Minnesota Transit Management Organization Feasibility Study.
Body
Action Requested:
The Northfield City Council approved the attached Resolution Supporting Further Exploration of Southeast Minnesota Transit Management Organization Feasibility Study.
Summary Report:
At the July 2025 Northfield Transportation Advisory Committee (NTAC) meeting, SE MN Together Mike Thorsteinson, Joel Young with (CEDA), and Ulla Hester with Alta Planning, shared they have a grant for a SE MN TMO study. The goal of this study is to advance transit systems, service, and facilities across the 11-county SE MN and determine if a Transit Management Organization will meet the region’s needs.
The Study goals aimed to “determine an organizational structure that can deliver resources to address the region’s transportation needs related to workforce transportation, access to healthcare and education, access to services, and quality of life”.
To achieve that goal, the project team set the following study parameters:
• Build on and advance the region’s successful transit systems, services, and facilities.
• Engage with leaders throughout the 11-county area to affirm the TMO approach meets regional needs and priorities.
• Identify barriers, gaps, redundancies and efficiencies in the region’s transit, mobility, and ridesharing services.
• Coordinate with and complement the regional transportation coordinating council efforts in Region 10.
In order for a TMO to be successful, it is necessary to identify the challenges that currently exist and understand how a TMO could address those challenges along with the financial sustainability of a regional TMO. The Study identified these items as Transportation Challenges in the 11-county area.
• Fragmented and Undercoordinated Transportation Services
• Limited Regional Coverage and Service Gaps
• Current Riders are Reliant on Transit
• Lack of Centralized Information and Trip Planning Support
• Technology and Booking Integration Gaps
• Underutilized Transit Services and Financial Inefficiencies
• Mismatch between travel patterns and service models
• Employer needs and opportunities
Establishing the correct TMO model for organizational structure is important to the success of the TMO. There would be a host organization and what the structure could look like is shown below:
There is also the need for a governance model for the TMO. The report identified the proposed Governance model below:
To advance the TMO, the initial priorities focus on four (4) major functions.
1. Coordinating transportation providers and services
2. Promoting transit and travel options
3. Serving as a regional information hub
4. Creating a unified voice for transit advocacy in the region
What’s Next for the TMO Study:
The City of Chatfield, as the sponsoring governing agency, has received another grant to continue to advance the TMO study. An RFQ has been prepared, and they are seeking a consultant/contractor to continue pre-launch efforts as identified in the first phase of the Southeast MN TMO Feasibility study report published in June 2025.
At the January 21, 2026 meeting, NTAC passed a motion of support for City Council to consider supporting the next phase of the study so the City of Northfield can further understand how forming a TMO could address transportation challenges locally and regionally.
City Plans & Policies Relevance:
This work is supported by the City’s 2045 Comprehensive Plan, Transportation Plan, and Strategic Plan.
The 2045 Comprehensive plans identifies these challenges:
• Community engagement identified a strong unmet need for reliable and effective public transit in Northfield.
• Public transit is provided by Hiawathaland Transit, offering two limited fixed routes, dial-a-ride services and a weekday regional route to Faribault every two hours.
• Current transit routes and transfer locations do not align well with areas of highest need, particularly census tracts with the greatest number of households without vehicles.
• Fixed routes are infrequent, have limited coverage, and only connect at the Transit Hub, resulting in long wait times and complicated transfers.
• Service hours (6 a.m. to 6 p.m.) do not accommodate second- and third-shift workers.
• Limited transit access creates time, convenience, and financial burdens, especially for households that depend on transit.
• Major destinations (hospital, shopping areas) are located at opposite ends of the city, making cross-town trips difficult.
• While centrally located, the Transit Hub requires safer crossings of Highway 3 to better connect to downtown and east-side destinations.
• Future transit planning should add stops near shopping and medical services and involve key user groups such as older adults, youth, people with disabilities, and college students.
• Transit is essential for affordability, regional connectivity, climate goals, and should be integrated with compact, connected land use and walkable development planning.
In addition to challenges, the 2045 Comprehensive Plan identifies specific actions related to access and equity related to transit.
• Implement a community-based evaluation of the existing transit routes; either to expand or reroute existing services for better connectivity, coverage and ease of use.
• Commit to funding and improving transit services and ridesharing options. Encourage partnership between Hiawathaland Transit, healthcare providers, rideshare companies, or other private/public entities for paratransit services and/or providing last-mile connections from transit stops.
Alternative Options:
NTAC could recommend not to support the TMO, however, staff is recommending continuing support to learn more about how it could benefit Northfield.
Financial Impacts:
NA
Tentative Timelines:
NA