Consider Cost Contribution for Transportation for Economic Development (TED) Grant application for the Armstrong Boulevard Interchange

Earlier this year, the City Council met to discuss our strategic goals. Near the top of the list of priorities given to Staff was to pursue funding opportunities for the Armstrong Boulevard / Trunk Highway 10 interchange. In 2011, the City of Ramsey, in cooperation with the Anoka County Highway Department applied to the Transportation for Economic Development (TED) program. The application scored very well but we were unsuccessful. Attached to this case is an overview of the 2012 program and a list of the projects that were awarded grants in 2011.

As you can see from the attachment, there was a wide variety of projects selected in 2011. This grant program was solicited at the same time as the Safety and Mobility (SAM) grant program. The funding for the two programs together totaled approximately $70 million and were designated primarily for projects that benefited economic development as well as increased capacity, safety and mobility for interchanges. These funds were distributed 50% inside the 7 county metropolitan area and 50% outside the metropolitan area.

In 2011, the projects that were eligible to apply for the TED program were those that were not in the State's transportation improvement plan (STIP). This year, however, projects that are in the STIP are allowed to apply for this grant. Additionally, the grant program will be more competitive because the projects that are being solicited do not have to be interchanges AND there is only between $20 - $30 million available to be distributed statewide. It is likely that the money will be split between the metropolitan area and the area outside the metropolitan area similar to how it was distributed last year.

The purpose of the case tonight is to discuss the cost contributions that are included in the grant application. As mentioned above there are a few differences between the 2011 and 2012 TED programs. Last year, one of the reasons that our grant application was ranked so high was the willingness to commit funding the remainder of the cost. The total project cost is estimated at about $36 million. We were applying for a grant for $10 million which meant that the City of Ramsey committed ~$13 million as did Anoka County.

Attached to this case is a compilation of the projects that we will complete within the next 2 years and how it reduces the cost of the interchange project. The maximum amount this year for the TED program has been limited to $7 million. Staff will review the costs associated with the project and discuss a potential funding solution that is included within the attached funding and uses package.

There is 100 points available for this grant application and there are 2 categories that will be impacted by the decision to reduce our financial commitment. The Financial Plan category is worth 20 points and the Project Readiness category is worth 10 points.

We have had discussions with Anoka County regarding the commitment to funding and have attached a draft Joint Powers Agreement. The grant application is due on April 27th.

Staff recommends approval of the attached Joint Powers Agreement with the Anoka County Highway Department and approval of the attached resolution indicating support for the interchange project.

The funding source has not been determined at this time but we will have time after acceptance of the grant to determine the funding sources. Some examples could include: Municipal State Aid, TIF, General obligation bonds, future land sale proceeds.

Staff recommends approval of the attached Joint Powers Agreement with the Anoka County Highway Department and approval of the attached resolution indicating support for the interchange project.