Update on Sunwood Realignment Project Funding and Discussion of Right of Way Acquisition for Sunwood Realignment and Future Armstrong Interchange  (Portions of this case may be closed to the public)

Improvement Project 12-20, Sunwood Drive Realignment, has been a key project on the Council agenda for the past six to eight months.  Four major objectives of this project have been identified in various grant applications and in the progression of plans for the Sunwood Realignment; they are as follows:

• Increasing safety to the traveling public by increasing spacing between turning movements on Armstrong Boulevard, the rail road tracks, and US10
• Making progress toward the completion of the TH 10 interchange at Armstrong Boulevard by completing this segment of the project (similar to the Bunker/Armstrong segment and Riverdale segment)
• Improving access conditions to the COR and the new Ramsey Station on the Northstar Commuter Rail by providing a signalized access on Armstrong Boulevard at its final location after the Armstrong Interchange is constructed
• Expanding the infrastructure in the COR to create salable lots in westerly portion of the project

Additionally, this project was listed as the top priority in the transportation section of the City Council's 2012 strategic goals and involved land acquisition on the west side of Armstrong Boulevard.

Council and HRA actions in progressing this project include the authorization of a feasibility study in June of 2011 and ordering of plans and specifications in January of 2012.  Grant applications have been submitted to both the Metropolitan Council and MNDot for funding of this key transportation improvement.  Staff was notified on Thursday, February 23rd that $500,000 in funding was awarded to this project by MNDot as a part of the Local Road Improvement Program (LRIP).  Awards for the Metropolitan Council TOD grants will be known by May of 2012.  Staff would like to review with Council this evening the proposed financing plan for the Sunwood Realignment project, a spreadsheet is attached for Council reference. 

At its December 13, 2011 regular meeting, the HRA authorized appraisals on three parcels west of Armstrong Boulevard. Appraisals have been completed on the three parcels and negotiations are underway with the various property owners. At the regular meeting of February 14, 2012, Council and the HRA passed a resolution that outlined the process for negotiations with one of the parcel owners, M & W Holdings LLC - Mr. Jeff Wise, a seated member of Council, HRA and the EDA. The resolution and draft minutes from the February 14th Council and HRA meetings are attached for Council reference.   As directed by the City Council and the HRA, the review appraisal is underway for the parcel owned by M & W Holdings - Mr. Jeff Wise. 

Staff has held numerous meetings with WSB (design engineer) to discuss the potential access and alignment issues with regard to the Sunwood Realignment as a preliminary phase of the Armstrong Interchange.  Council may recall that there are slight differences in the final alignment of Armstrong Boulevard between these projects, and the outcome of the acquisition discussion may influence the final design of each project.   Staff and the City Attorney wish to update the Council this evening during a closed session with regard to the status of the negotiations and receive direction regarding further negotiations with the landowners. 

Proper notice was provided of the closed portion of this case. 

Please see attached documents. 

Receive update and direct staff with regard to project financing and negotiations for right of way acquisition. 

See attached spreadsheet for Sunwood Realignment Financing Plan. 

Receive update and direct staff with regard to project financing and negotiations for right of way acquisition.