Receive Draft West Armstrong Area Street Reconstruction Feasibility Report

The purpose of this case is to:
1)  Receive Draft West Armstrong Redevelopment Area Street Reconstruction Report
2)  Provide comments / suggestions /recommendations to City Council

Background: 
The Proposed West Armstrong Street and Infrastructure Project
In 2017-2018, the City began planning for the reconstruction of 146th Avenue, 147th Avenue and Ferret Street. In January of 2019, the City tabled the project with the support of the adjacent private property owners until future land use planning and visioning were complete. With the completion of the 2040 Comprehensive Plan Update, that visioning and land use planning is now complete and the City should be able to move forward with this needed pavement management plan without interfering with the redevelopment vision. In fact, investment in basic infrastructure in this area likely will leverage interest to facilitate private redevelopment.  This proposed project expands sewer and water in the area and also connects Ferret Street to Bunker Lake Boulevard (new infrastructure in addition to reconstruction of existing infrastructure).  Multiple property owners in the West Armstrong Redevelopment Area have expressed support of the street reconstruction and extension of city services, which is a change from the 2018-2019. 

In May of 2021, the EDA and City Council reaffirmed the vision of the West Armstrong Redevelopment Area (Industrial and COR zoning) and to asked Staff to put together a plan to identify project costs and design to:
1) Reconstruct 146th, 147th and Ferret Street 
2) Extend Ferret St. to Bunker Lake Boulevard
3) Install City Sewer, Water and Storm Sewer

The City Council directed staff to bring forth a proposal to obtain design and costs to reconstruct and design roadways and to install City utilities.  Staff obtained authorization to move forward with the proposal through Resolution #21-349 adopted by the City Council on December 14, 2021.

Draft West Armstrong Area Street Reconstruction Feasibility Report
Bolton and Menk has completed the Draft West Armstrong Area Street Reconstruction Feasibility Report.  The cost to complete the project is estimated to be $1,827,159.66 (including 10% contingency)

Development Update in West of Armstrong Redevelopment Area and Bunker Lake Business Park
Industrial development and demand remains strong in the City of Ramsey. Recent in-fill Development (65,000 SF - Anderson Dahlen - AEC Energy Park) and developments in Bunker Lake Industrial Park (Oppidan - 405,000 SF and BLIP 4 - 67,000 SF).  PSD LLC is considering the construction of 84,000 SF industrial warehouse building in Bunker Lake Industrial Park in 2023 which will reduce the available industrial land with City Sewer and Water to approximately 10 acres.  ARAA has submitted a site plan to construct a Sports Dome on the SW corner of the industrial guided site


 

Notification is not required. 

Observations:
The Draft West Armstrong Street Reconstruction Feasibility Report outlines the cost and timeline to reconstruct 146th Avenue NW, 147th Avenue NW, Ferret Street NW (and extension to Bunker Lake Boulevard NW) and install City Sewer, Water and Storm Sewer to serve the area.  The cost to construct the improvements and land acquisition required for Right of Way (ROW) is estimated to be $1,827,159.   This project will open up 26 acres for the ARAA Sports Dome Project development and additional Industrial West of Ferret Street.  It will also create access and frontage for about 10 acres of property zoned COR / Retail east of Ferret Street. The study outlines a project timeline that allows for 2023 construction commencing in July and completion at the end of September 2023.  There are a few potential funding sources for the project but the Study shows a model based on special assessments and other specific City Funds.  

Staff is looking for comments/recommendation in support or against the proposed project and suggestions as to how the project could be funded to be provided to the City Council.  Items to be considered include:

Project Timing
Support for ARAA Sports Dome project
Support for identified funding sources
Suggestions for alternative funding sources
Support for Special Assessments for benefited properties
Other comments

Alternatives:
1) EDA recommend that the City Council identify a viable funding source and move forward with construction of the West Armstrong Street Reconstruction Project in 2023
2) Something else
 

The Draft West Armstrong Street Reconstruction Feasibility Study identifies the following funding structure for the project: 

1. Special Assessments for properties receiving benefit for the project
2. 5-year Street Reconstruction and Overlay Program bonds for city portion of road and sidewalk reconstruction.
3. Water and Stormwater Utility Funds for all utility improvements.

There are other funds that could potentially be used to offset City costs for the project.  They include:

1. PIR Fund
2. EDA Fund Balance
3. Anoka County HRA (Housing and Redevelopment Authority) Fund
4. TIF 14 (Tax Increment Financing) (expenses incurred prior to November 28, 2023)

The funding for this action would be determined based on consultation with Finance Director, PWC and City Council.

Motion to recommend that the City Council identify a viable funding source and move forward with construction of the West Armstrong Street Reconstruction Project in 2023