On January 6, MnDOT announced that the City of Two Harbors received a $4.9 million grant from a $76.2 million statewide transportation investment. This funding, sourced from programs like the Minnesota Highway Freight Program and the Corridors of Commerce Readiness Advancement Program, aims to support projects that enhance freight safety, access, and mobility, ultimately benefiting the local community and economy.
The $4.9 million is dedicated to the Two Harbors Highway 61 Corridor Project 2, a major multi-year initiative to modernize the main artery through town. The project is intended to extend the road’s lifespan. According to MnDOT, the road handles roughly 10,000–20,000 vehicles per day. Two roundabouts will be constructed at the intersections of 7th Avenue and 11th Avenue. These are designed to improve traffic flow, especially during the peak summer tourist season, and to make it safer for heavy trucks to navigate. While locals often worry these will cause more backups, MnDOT’s study found the opposite for peak times. During peak summer weekends, the roundabouts are expected to reduce traffic delays by up to 50%. Without a signal light at 7th or 11th, it can be nearly impossible for locals to turn onto Highway 61 during the summer. Roundabouts create natural “gaps” in traffic that allow cars from side streets to merge more easily. The project will add protected pedestrian crossing refuges, sidewalk improvements, and new trail connections to the Gitchi Gami State Trail.
A major driver for this grant was the economic impact on the local industry. Specifically, it provides “controlled access” for Northshore Manufacturing, allowing for more efficient shipping. The company has indicated that these improvements may help them add up to 50 full-time employees.
What will be lost in this highway improvement is parking space along the Highway 61 corridor. One detail often missed in the high-level press releases is the impact on parking. To make room for the three-lane expansion and the roundabouts, Two Harbors will lose all 47 parking spaces currently on the north side of Highway 61. The 45 spaces on the south side will be retained.
Construction should begin in 2027 and run through 2028. During construction, northbound traffic will be maintained through town, while southbound automobile traffic will be detoured via Hwy 2 to County Hwy 26.
MnDOT held a public meeting in Two Harbors this past September to discuss detour plans. It is committed to having a Business Liaison on-site during construction to ensure access to storefronts such as Castle Danger Brewery and Sonju Motors remains open.
“Infrastructure investments in Minnesota help people get where they need to go safely, help businesses grow, and make local communities attractive to companies looking to relocate or expand,” said MnDOT Commissioner Nancy Daubenberger. “Safety is always a guiding principle of our funding decisions, and these transportation projects will help us better serve our state for decades to come.”
