Orange barrels on a highway

TED Project—Two Harbors

Lake County 26 Extension/Business Development Project

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Funding Package

The total project cost for the Two Harbors extension project is $1,690,000.  TED funds from MnDOT and DEED contributed $1,183,000 to this project and the rest was funded by the City of Two Harbors. 

Project Description

I firmly believe that the cash match for the proposed signal work—to provide improved access to Northshore Manufacturing—is a great use of State Aid dollars. This project is visionary by the City of Two Harbors and its stated goals of improving access control on this busy stretch of Hwy 61, as well as providing 10-ton access to Northshore Manufacturing with an improved city street (including improved access to several adjacent buildable sites). You’ve done well with this project to get it this far and should be commended for the future Economic Development gains to Lake County. A job well done!


--Alan Goodman, County Engineer

This TED project consists of extending County Road 26 across Hwy 61 in order to help alleviate traffic congestion, improve safety, and to eliminate uncontrolled accesses.  In addition, municipal utilities will also be upgraded and extended to provide necessary utilities that will support nearby development.  As a result of these improvements, Northshore Manufacturing will be able to operate more efficiently, which will allow them to increase their number of full-time employees.

Transportation Impacts
The portion of road that this project focuses on experiences average traffic counts of approximately 10,000 vehicles per day, and close to 20,000 vehicles per day in the summer during tourist season. Due to the heavy traffic and the multiple accesses onto Hwy 61, this area has become very dangerous.  The project will address these safety concerns by creating a controlled access and updating traffic signalization.



Economic Development Impacts
This TED project will benefit Northshore Manufacturing by providing controlled access to Hwy 61, which will allow their shipping to be more efficient and productive.  As a result of this improvement, Northshore Manufacturing plans to add 50 additional full-time employees over the next five years, which have an average annual salary of over $50,000.  This project will also help other local businesses in the area such as Sonju Motors, Country Inn Motel, and the Recycling Center.



two harbors aerial map