The first phase of the West Babbitt Development Project is fully underway, with the Central Boulevard mainline now complete and other infrastructure projects in progress.
The contractor, Rachel Contracting, is operating right on schedule, wrote Babbitt clerk-treasurer Nancy Sanford.
In September 2026, all water, sewer, electrical, streets and street lighting will be in place, Sanford stated. This will allow private builders to jump in and bring a variety of new residential opportunities to town, including single-family homes and an eight-acre multi-unit housing development.
Rachel Contracting is currently bringing fill to assist with utility construction.
The wastewater lift station is set for installation throughout the third week of June. According to the project progress map, dewatering at the site began on June 1, while construction on a gravity sewer line launched this Monday.
Most underground work such as excavation and culvert installation - should be completed around the end of June or early July, Sanford stated.
This does not include electrical, however, Sanford wrote. Rachel Contracting and the engineering firm Short Elliott Hendrickson, Inc. (SEH) are engaged in communications with Minnesota Power to finalize a timeline for this portion of the project.
Currently, the development’s progress chart places small utilities work with Minnesota Power on the schedule throughout most of July.
Road tolerancing and paving is set for the first two weeks of August. The summer months will conclude with seeding and final site restoration after the streets’ completion.
The project is still operating in line with its budget, Stanford stated, which the City of Babbitt’s website lists as $4.45 million.
The website states that $2 million of the project’s funding will come from state bonding and $785,000 from a general obligation bond on behalf of the City of Babbitt. The IRRRB will provide another $1,665,000 to cover development expenses.
In an update at the June 2 regular Babbitt city council meeting, Sanford reported that all bonding funds had been received. As of that date, some reimbursements still needed to be filed before the December 31, 2026 deadline.
Sanford wrote that discussions have occurred with a developer already, although no contracts have yet occurred.
Mayor Andrea Zupancich said there has been “real and genuine interest” in the development of multi-unit housing and other lots.
Zupancich said the project’s progress has been encouraging for Babbitt, given its status as the first large development in the city in decades.
“The City is so excited about this development and the housing options it will bring to Babbitt,” Sanford wrote.
