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5.1.
HRA Regular Session
Meeting Date:
01/24/2012
By:
Tim Himmer, Engineering/Public Works

Title:

Consider Deviations From the Current Policy on Distribution of Land Sale Proceeds for Potential Funding of the Sunwood Drive Realignment

Background:

In the summer of 2011, both the HRA and the City Council approved contracts with separate consultants to investigate the potential realignment of Sunwood Drive near Armstrong Boulevard. Landform was hired by the HRA in June to work on the portion of the project internal to the COR, and update the necessary AUAR components for the project. The scope of services to complete their work did not include any items outside of the development area and within Anoka County right-of-way along Armstrong Boulevard. WSB and Associates was hired by the City Council in July to perform all portions of the project located within Anoka County right-of-way, as they are the consultant that is working on the TH 10/Armstrong interchange and the recently completed Bunker/Armstrong signalization project. This two pronged approach was to maximize efficiencies by building on all previous work completed to date, both internal and external to the COR.

The project includes the realignment of Sunwood Drive, between approximately Zeolite Street and Armstrong Boulevard (see attached preliminary design). The intent is to work north to south on Armstrong Boulevard and complete another section of the roadway in its final location; to set the stage for the ultimate interchange over the railroad tracks and TH 10. It will also create additional developable land for retail space near the new intersection, and create a signalized full access to the COR from Armstrong Boulevard.

Draft feasibility studies were presented to the Public Works Committee and HRA on December 13,2011, with the only remaining outstanding item being the funding package. On that date the HRA authorized the preparation of appraisals for the potential acquisition of 3 parcels along the west side of Armstrong Boulevard that are necessary for portions of this project, and ultimately the interchange project. This case provides the final draft of the feasibility studies and includes a funding package for the entire project.

This case was on the City Council agenda earlier this evening, and has been included on the HRA agenda to discuss the possibility of deviating from the current policy on distribution of land sale proceeds to fund a portion of this project.

Observations:

Currently the traffic and land use components of the COR AUAR are in need of an update to reflect the current conceptual design approved by the HRA. These two components are also necessary to properly assess and design the proposed Sunwood Drive realignment, as the uses and anticipated traffic have significantly changed since the original AUAR was drafted. These AUAR update tasks were included in the proposal from Landform, and are incorporated in their feasibility study.

Recall that there are a few design items contained in these feasibility studies that differ slightly from the preliminary design of the Armstrong/TH 10 interchange project. Those discrepancies were discussed by the City Council in work session on December 13, 2011 and following is the direction received:
  1. The location of 147th Avenue NW is currently shown in its existing location on the interchange design, but it is shifted slightly south of its current location in the Sunwood realignment project. This was done to improve the primary access into the COR from Armstrong Boulevard, and be consistent with the HRA approved development plan. Council felt we should continue with the design shown for the Sunwood realignment, as the HRA would be undertaking a process to acquire the necessary land along the west side of Armstrong Boulevard. It was also explained that current Anoka County policy requires the City to own and maintain the signal proposed at this intersection in perpetuity, based upon warrants.
  2. Armstrong Boulevard is shown to diverge to the east slightly, out of the existing right-of-way into the COR property on the interchange design, but remains in its current alignment on the Sunwood project. The interchange project was designed to avoid total takings of the properties along the west side of Armstrong, and therefore the roadway is proposed to move slightly east onto vacant HRA land in an effort to keep acquisition costs down. The Sunwood project proposes holding the existing Armstrong alignment, which is consistent with HRA direction to investigate purchasing properties on the west side of Armstrong in an attempt to solve right-of-way acquisition issues for both projects. If we are able to successfully acquire these parcels Armstrong would be able to remain in its current alignment, thereby resulting in improved roadway geometrics and reduced interchange costs.
  3. Staff was approached by Mid America, the property owner of Northstar Marketplace, requesting a right-in condition be included in the interchange project for better access to their site. Council expressed some concerns related to the proposed sketch but decided to delay an official response until Mid America could provide additional detailed information as to the feasibility of such an access. It was discussed that Mid America should perform the necessary investigations and analysis to determine whether this access could be accommodated, not only by the City but also the other jurisdictions involved (Anoka County and MnDOT), before a decision could be made on who would be responsible to pay for and maintain such an improvement.
  4. One final item of discussion on both projects was related to turf establishment. Council direction was to install the City's required topsoil and sod within all City right-of-way, but seed could be substituted in place of sod in the County right-of-way. It was proposed (and accepted) this way because portions of the Armstrong work will only be temporary until the interchange is constructed. The boulevard landscaping in these temporary areas can be included with development review, to ensure site landscaping accounts for these areas when develop occurs, and what isn't resolved through development can be incorporated into the interchange design.
As opposed to re-designing the interchange project (and all associated approvals and documents that go with it) at this late date, it was decided to continue with the plans as designed and referenced in all public meetings to date. If the Sunwood realignment project moves forward revisions to the interchange design can be accommodated prior to final design. The idea being that the Sunwood realignment would reduce the total project costs associated with the interchange, as the City would be preconstructing improvements that were originally attributed to the interchange while not adversely affect the overall design.

Recommendation:

Staff is looking for direction on how to best fund the Sunwood Drive realignment project.  A few options have been provided for your consideration; a couple of which include deviations from the current policy on distribution of land sale proceeds.

Funding Source:

A few funding scenarios to finance the project are attached for consideration, and staff is looking for direction on which option is preferred by the City Council. Once a final financing package is determined the feasibility studies can be finalized, consistent with that direction, and preparation of construction documents can commence.

A discussion to consider deviating from the existing policy on distribution of land sale proceeds is contemplated in this funding analysis. There are also a couple of grant opportunities, that staff is currently preparing applications for, which are included in the analysis. If we are successful in securing those grant dollars they could be included in the funding package in place of other options being considered.

Council Action:

Based upon discussion.

Attachments

Form Review

Form Started By:
thimmer
Started On:
01/19/2012 01:35 PM
Final Approval Date:
01/19/2012