Update on Sunwood Drive Realignment Project - PORTIONS OF THIS DISCUSSION MAY BE CLOSED TO THE PUBLIC 

The Council discussed this case earlier this evening with portions of the discussion closed to the public.  This item is now on the HRA agenda to update the HRA and to discuss the HRA responsibilities relative to the Sunwood Drive reralignment project.  

A breakdown of all costs attributable to the Sunwood Realignment Project are as follows:

Land Acquisition	$2,700,000
Armstrong Blvd	$1,650,000
Sunwood Drive	$1,075,000
COR Grading & Northstar Market Place Access Revisions	$210,000
Streetlighting	$112,000
Engineering/Construction Administration/Testing	$470,000
TOTAL	$6,217,000

The funding package for this project, as previously approved by the City Council is as follows:

Anoka County	$1,700,000
LRIP Grant	$500,000
Equipment Revolving Fund	$1,056,450
TIF #2	$500,000
Stormwater Utility Fund	$255,484
Water Utility Fund	$238,066
EDA (Nordvik acquisition)	$600,000
Excess Rail Funding	$500,000
TOTAL	$5,350,000

A revised accounting, based upon the most current estimates, is as follows:

Anoka County	$1,700,000
LRIP Grant	$500,000
Equipment Revolving Fund	$1,056,450
TIF #2	$500,000
Stormwater Utility Fund	$230,500
Water Utility Fund	$210,000
Sanitary Sewer Utility Fund	$19,000
EDA (Nordvik acquisition)	$600,000
Excess Rail Funding	$500,000
Streetlight Utility	$112,000
COR land sale proceeds *	$500,000
TOTAL	$5,927,950

As can be seen above there is approximately $289,000 that is unaccounted for with this project.  This overage is primarily the costs for streetlighting and construction administration/testing.  Staff intends to make adjustments for a portion of the soft costs (engineering/testing) such that the appropriate enterprise funds pay their pro-rata share.  City staff was preparing to perform the construction administration on this project, but due to recent staffing changes we will have to review this matter to determine what can be accomplished in house, and what will have to be contracted.  It is proposed that the Streetlight Utility will fund the streetlighting component of this project.  

The Housing and Redevelopment Authority (HRA) will have to discuss the COR land sale proceeds referenced above to determine whether they are interested in deviating from their land sale distribution policy, and apply the entire amount of a pending land sale to this improvement project.  A final funding package will be brought forward, clarifying these matters, after the bids are opened and a project is proposed to be awarded (June 26, 2012).

The funding for this project has been identified above.