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INFORMATION #3 10-18-2010INFORMATION MEMORANDUM TO: Mayor and City Council FROM: Justin Femrite, P.E., City Engineer DATE: October 18, 2010 SUBJECT: Interchange Grant Solicitation Update On Monday October 11, 2010 two separate funding programs were issued to solicit candidate interchange projects throughout Minnesota for funding. The solicitations axe similar to the Greater Minnesota Interchange solicitation from 2009. The 2009 program has now been split into two separate categories so that economic development initiated interchanges compete against like projects and similarly safety and mobility proposed interchanges compete with like projects. The two programs are summarized as follows: 1. Transportation Economic Development (TED) Pilot Program This program is designed to address both the state's transportation system needs and economic development objectives; to create and preserve well-paying jobs across the state; and to leverage private and local investment in transportation infrastructure improvements. This $39 million program is funded with $30 million in trunk highway bonds legislatively designated for the construction of interchanges; $5 million in uncommitted state road construction trunk highway bonds; and $4 million in general obligation bonds designated for business development public infrastructure. Any public entity is eligible to submit an application for TED funding. 2. Safety and Mobility (SAM) Program This program is designed to address the state trunk highway system's critical safety and mobility needs through new or improved interchange projects. The program is funded with $40 million in trunk highway bonds legislatively designated for the construction of interchanges. Since all eligible projects will be for the improvement of interchanges on the state trunk highway system, all applications must be submitted by the host Mn/DOT district. N:\Public Bodies\City Council\Coundl RCA\Agenda Packet\10-18-2010\Interchange Solicitation Memo -Information Only.doc We have started to review the criteria for each funding opportunity. Of potential interchange locations within the City of Elk River, the following locations score the highest based on the criteria that will be used to review the respective applications. 1. Transportation Economic Development (TED) Program -Interchange on TH 10 at 168`'' Avenue A heavy portion of the scoring for projects considered for funding through this program is the economic impact a project will have. This interchange would begin the development and redevelopment in the 1715` Avenue area. This is the same interchange that was submitted for the 2009 Greater Minnesota Interchange funding. As staff we will start to review last year's application and adjusting it according to this year's solicitation requirements. 2. Safety and Mobility (SAM) Program -Interchange on TH 169 at Main Street While this interchange is directly connected to required improvements both to the north and south, it is the City of Elk River's highest scoring intersection. Projects eligible fox the SAM Program must be brought forward by the respective MNDOT district. We will be in contact with District 3 staff to evaluate including this intersection as a candidate. Understanding that MNDOt District 3 has 6 other intersections that score higher than the TH 169 and Main Street intersection, it is possible this project will not make it beyond initial review of projects at the District level. We are beginning to study the applications and will be bringing them forward for approval at future meetings if these projects continue to look like they would score well for funding. The deadline for submittal is in early December. N:\Public Bodies\City Council\Council RCA\Agenda Packet\10-18-2010\Interchange Solicitation Memo -Information Only.doc