MnDOT Plans Major Highway 61 Corridor Overhaul in Two Harbors

Utility crews will begin work along Highway 61 in Two Harbors later this year, the opening move in a seven-year overhaul that MnDOT District 1 has been developing since 2018 and that will fundamentally reshape how drivers, pedestrians, and cyclists move through the corridor.

The project, currently in final design, calls for a complete rebuild of the roadway beginning in 2027, with construction running through 2028 and final landscaping wrapping up in 2029. The 2026 utility work is preparatory; the heavier reconstruction, including replacement of underground utilities and the roadway surface itself, arrives the following year. Traffic will be fully detoured during construction, with separate detour routes mapped for 2027 and 2028, both available on the MnDOT project page.

The corridor plan introduces several significant changes to the stretch of Highway 61 that functions as Two Harbors' main commercial spine. Two roundabouts will replace existing intersections: one at Highway 61 and 7th Avenue, near the Kwik Trip, and another at Highway 61 and 11th Street, near Culver's. Existing traffic signals at 4th Street, 6th Street, and 7th Street will be retained. The left turn from Scenic Drive onto Highway 61 will be closed, and a new multi-use trail will run from Scenic Drive into town, separated from the roadway. The plan also includes multiple protected pedestrian crossing refuges, sidewalk improvements, Park Road intersection improvements, and trail connections to the Gitchi Gami Trail. Public notices on the MnDOT site reference exhibits for both Burlington Bay Campground and the Gitchi Gami State Trail, signaling that those adjacent properties required formal coordination.

MnDOT Public Affairs Coordinator Margie Nelson made the case for roundabouts at a recent business meeting, pointing specifically to the Highway 61 bottleneck that strains Two Harbors every autumn. "We understand that there are backups during peak periods, especially during fall colors," Nelson said. "But the rest of the time, when you're the only one sitting at that light, you can just keep moving. It's much more efficient in the long run." On safety, Nelson was direct: "The worst you could do is bump someone," she said, noting that the absence of right-angle conflicts makes serious crashes far less likely.

MnDOT hosted the business meeting, for which presentation slides are dated September 23, 2025, to help local businesses prepare for the access disruptions ahead. The agency shared updates on construction access, ideas for business messaging, and information about available resources.

Janelle Jones, president of the Lake County Chamber of Commerce, acknowledged the construction will affect businesses but framed the disruption as a worthwhile trade. "We know that there is going to be such a positive impact for not just the people that are living here, but the people that are coming here and visiting here," Jones said. "We're excited for what we're going to have when we're done."

The project's public engagement record stretches back to March 2022, with additional meetings and materials documented through a June 2025 recorded presentation and the September 2025 business update. MnDOT's project page also hosts a visual quality manual, a roundabout FAQ addressing questions about large vehicles and signal comparisons, and enlargeable detour maps for both construction years. The 2029 landscaping phase is not expected to affect traffic.