Statement from Granite and McCrossan

Hiawatha light rail line:

Minnesota Transit Constructors (MnTC) is a joint venutre of Granite Construction Co., C.S. McCrossan, Inc. and Parson Transportation Group/Edwards & Kelcey. MnTC was the design-build contractor of the Hiawatha Light Rail Project for the Minnesota Department of Transportation (MnDOT).

MnTC is proud of the work it did to design and construct one of the premier public transportation projects in the nation. The Hiawatha Light Rail line is a great success.

The project was a success in part because of MnTC's firm commitment to use good faith efforts to solicit and encourage the participation of Disadvantaged Business Enterprises (DBEs), in MnTC's performance of the project.

MnTC worked closely with MnDOT and the Metropolitan Council in connection with the utilization of DBEs on the project. MnTC paid special attention to the Minnesota DBE contracting community, and reached out to local DBE businesses in very cooperative and effective ways. As a result, Minnesota DBEs furnished and installed some of the most important parts of the project. MnTC and its subcontractors utilized a total of 61 DBE firms to perform or provide work valued at over $42 million.

MnTC's DBE utilization efforts received widespread national and statewide recognition. Notably, MnTC received the National Association of Minority Contractors' 2001 Special Recognition Award for its DBE efforts on the Hiawatha Light Rail Project. MnTC's DBE contact person also received a commendation from the Metropolitan Council, stating that his commitment to excellence helped ensure the success of the project.

After the completion of the construction and the opening of the project, MnDOT notified MnTC that MnDOT alleges there were certain violations of the DBE provisions in the project contract, and proposes to impose sanctions on MnTC.

MnTC has reviewed MnDOT's report and remains confident that it performed the project DBE program in good faith, as required by the contract. MnTC has issued a written response to MnDOT disputing MnDOT's allegations. As called for in the project contract, MnDOT is currently reviewing that response, and will complete that review before a decision is taken whether to proceed with any sanctions. If sanctions are imposed, MnTC will contest that action through the contract's dispute resolution procedures.

I-494 project:

Granite Construction Co. and C.S. McCrossan, Inc. worked together on a different joint venture (Granite/McCrossan) on another project for MnDOT, namely the design and construction of improvements to a section of Interstate 494.

Following the completion of the construction and the opening of that project, Granite/McCrossan received notice that MnDOT alleges certain violations of DBE contract requirements, and intends to impose sanctions. Granite/McCrossan disputes MnDOT's allegations and is preparing its response to those allegations, which will be provided to and reviewed by MnDOT before a decision is taken whether to proceed with any sanctions.

The companies involved in these projects have excellent reputations regarding their utilization of DBE firms, and remain committed to complying with all DBE requirements on their projects.