Consider Accepting MnDOT Municipal Cooperative Agreement Funding for the Extension of Riverdale Drive

The TH 10 and Armstrong Boulevard interchange project continues to advance through the environmental review process.  During one of the open houses, early on in the public process, the City received a couple of comments from property owners along the south side of Highway 10 (east of Armstrong Boulevard) requesting a secondary access.  Their concern was that the future interchange would obstruct visibility of eastbound travelers, thereby making it extremely difficult to access their sites.  In response to those comments, and consistent with MnDOT policies and previous corridor studies, access management to those properties via a frontage road system became part of the project design (see attached conceptual design).  The first phase of the proposed frontage road system along the south side of TH 10 includes an extension of Riverdale Drive, from approximately Alpaca Street to Traprock Street.

In an effort to keep the costs of the interchange project to a minimum, the City may decide to advance stand alone projects for portions of the work; including the Sunwood Drive realignment and the Riverdale Drive extension.  Advance constructing these projects would be done to improve traffic flow through the area in the short term, and be used as a City contribution to the overall interchange project in the future.  The City Council approved a resolution of support for the Riverdale Drive extension on August 23, 2011, and staff submitted a grant application to MnDOT under their Municipal Cooperative Agreement program.  The City request sought the maximum allowable funding of $702,000 to assist in paying for a portion of this frontage road work, which is estimated at $1.5M.  The alignment and design for this frontage road is slightly different from what is shown on the interchange concept and includes improvements that would benefit the overall highway system; specifically median revisions at Traprock Street for safer ingress/egress, construction of acceleration/turn lanes on Highway 10 at Traprock Street, and closure of Alpaca Street at Highway 10 (see attached conceptual layout).

The City recently received an award from MnDOT stating that we had been selected for full funding under the 2013 Municipal Agreement program.  In order to take advantage of this grant opportunity we must respond by January 24, 2012 if we intend to accept the funds, and the project must be let no later than June 30, 2013.

The estimated project cost of $1.5M includes a 20% contingency and other associated costs for right-of-way acquisition, engineering, and administration.  While constructing the roadway extension is fairly straight forward, direct impacts to a couple of properties along the south side of TH 10 are required.

Staff has met informally with representatives from Hope Fellowship Church to discuss the potential impacts to their vacant parcel.  Overall they were supportive of the project, but were extremely interested in getting municipal utilities extended to their property.  They felt that an opportunity may exist for a mutually beneficial relationship whereby they would dedicate the needed right-of-way in exchange for the City constructing the roadway and extending utilities to serve their property.  Attached is a draft letter that staff has prepared to outline a proposal for such work.  Should the City agree to accept the MnDOT funds we are obligated to acquire the necessary right-of-way, and staff is looking for Council direction as to whether this is the route they would like to continue investigating as a means to acquire the needed right-of-way.  Currently sanitary sewer and watermain are located just south of TH10 on Armstrong Boulevard, and the potential extension from this location to the Hope Fellowship property is estimated at $1 M.

Staff is currently attempting to set up meetings with the owner of the former Diamonds site and Anoka County Parks to discuss this potential project, impacts to their respective properties, and their long term plans and utility needs.  Based upon Council direction and the outcome of these property owner meetings, staff can then develop a project that meets the needs of all.

Outlined in this case and attachments are several alternatives for consideration; including:

1. Accepting the MnDOT grant and completing the roadway extension only.  Under this scenario we would have to directly acquire the needed right-of-way, which has been estimated at $150,000 using Anoka County assessed values.
2. Accepting the MnDOT grant and acquiring the necessary right-of-way in exchange for utility extensions.  The watermain component is fairly straight forward and includes an extension from the intersection of Armstrong Boulevard and Riverdale Street to Traprock Street, which would then be further extended and looped back into the system with a subsequent project extending the frontage road to Ramsey Boulevard.  The sanitary sewer component could be accomplished in a couple of different ways; either a gravity extension to the western boundary of the Hope Fellowship property, or a force main system extended to a location on the Hope Fellowship or County Park property that would give us the greatest flexibility for use in the future.
3. Turning down the MnDOT grant and completing the frontage road extension with the interchange project.

Staff is seeking Council direction on whether or not to accept the MnDOT cooperative agreement, and how we should go about acquiring the right-of-way necessary to complete the project.  Staff believes the gravity sewer extension would be the best course of action at this time because it accomplishes several key items:

1. Utility extension to secure the needed right-of-way for the frontage road extension
2. Completely rebuilt Riverdale Drive from Armstrong to Traprock
3. Ability for the existing properties along Riverdale Drive to immediately connect to the sanitary sewer
4. Flexibility in the use of the sanitary sewer, which can be realized as development occurs in the area to the east

In order to accept this MnDOT cooperative agreement the City would need to commit all remaining funds to complete the project, estimated at $866,000.  Right-of-way acquisition is estimated at $150,000, which could potentially be eliminated if the City can reach agreements with the impacted property owners for dedication in exchange for improvements.

The segment of Riverdale Drive, from Armstrong Boulevard to Alpaca Street, is currently shown in the street inventory as needing an overlay in 2012.  If Council should decide to extend utilities in exchange for right-of-way dedication, we could forego this improvement until 2013 and include assessments and the utility enterprise funds as possible funding options as well.  Depending on the outcome of City reconstruction initiative, funding under that program could also be used for a portion of this project.

Riverdale Drive is contained within the City's municipal state aid (MSA) system, so funding from that source is also an option.  Staff has also identified another MnDOT program that could fund a portion of this project, the Local Road Improvement Program (LRIP).  A resolution of support for this program was approved by the City Council on January 10, 2012, and staff will be submitted an application seeking $500,000 from this program by the February 3, 2012 deadline.

A couple of funding scenarios are attached for you review and consideration. An additional consideration could be to utilize the Economic Development Authority due to the potential benefit to both existing businesses as well as future growth within the COR.