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5.1. SR 12-13-2010REQUEST FOR ACTION TO ITEM NUMBER Economic Development Authority 5.1. Ci Council AGENDA SECTION MEETING DATE PREPARED BY Worksession December 13, 2010 erem Barnhart, Plannin Mana er ITEM DESCRIPTION REVIEWED B~/ Joint Meeting with the EDA to Discuss Focused Area Study Lori ohnson, Ci Administrator Implementation REVIEWED BY ACTION REQUESTED Staff recommends the EDA confirm the phasing plan as drafted. Staff recommends the City Council: a. Confirm the phasing plan as drafted b. Begin the AUAR process for the whole project c. Begin preliminary engineering work for phase 1 as identified in the attached exhibit. BACKGROUND/DISCUSSION To implement the Focused Area Study, staff has identified two functions that must be accomplished: regulatory adjustments and infrastructure development. Regulatory adjustments include updating the Comprehensive Plan, updating the zoning ordinances, updating transportation plans, etc. Staff is preparing for a regulatory discussion over the winter with stakeholders, Planning Commissioners, and the City Council. Infrastructure development includes the development of the necessary streets, utilities, green infrastructure, preservation, or acquisition of right of way, etc. In meeting with the development community, it is understood that the more the variables (location of intersections, costs, planned versus adopted regulations, etc.) and the more time involved in completing infrastructure, the less attractive a potential area is viewed. The understood goal of these first steps is to position the area for development, but to do so in a financially responsible way while balancing risk. The infrastructure of FAST can be developed in phases, suggested by staff below: N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-13-10\FAST Joint EDA CC.docx Cost Acres Focused Area Study Suggested Phasing (millions) Opened Improvement of intersection of 171st and Twin Lakes Road, Phase 1 improvement of Twin Lakes $2.1 29 Road, to the first intersection to the south. Extension of Twin Lakes Road Phase 2 to the southern and eastern $2.4 81 boundary of the City property. Extension of Twin Lakes Road Phase 3 to the intersection with $2 9 75 Highway 10, but not the actual intersection. Completion of local road Phase 4 network on west side of $3.35 86 Highway 10, plus completion of Twin Lakes Road to 165th. Connection with a signalized Phase 5 at-grade intersection at 168th $1.11 0 Avenue and TH 10. Phase 6 Completion of Interchange at $35.5 0 168th Avenue and TH 10 The completion of each of these segments includes many subparts, including: Step (per phase, unless noted) Time Cost Preliminary Engineering Study 2-3 months $15-20,000 x o Environmental review ~ EAW (per phase) 9-12 months $50,000 AUAR (complete project) 12 months (all project) $150,000 Final Design/ permitting 6 months 8-10% of project Grading 2 months Varies, See ~ o Attached Estimate ~~ Varies, See Utility construction 5 months Attached Estimate :~ 0 U Varies, See Street Construction 2 months Attached Estimate N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-13-10\FAST Joint EDA CC.docx In preparing recommendations, staff identified several initial questions: 1. Are the phase breakdowns appropriate? Staff felt they were logical breakdowns intended to open up land for development while balancing the financial risk. 2. What type of environmental assessment, AUAR or EAW? Staff felt the benefits of the AUAR being completed up front, and for the whole project, outweighed the higher initial cost. An EAW would need to be completed at each phase, and at an estimated $50,000 per phase, the costs would exceed the cost of an AUAR. 3. Boundary of the environmental assessment. There is option to remove approximately 9 acres of the northern portion of the project from the environmental assessment process. This would allow the sale of that property immediately, and a user could develop that property at their schedule, rather than wait for the environmental assessment process to complete. The downside is that there is a benefit to completing the whole assessment project comprehensively, rather than piecemeal. Additional, any development reduces options, and lastly, breaking up the project could be seen as a connected action by the Minnesota Environmental Quality Board, which could slow down the review of the balance of the project. 4. Which entity (Council, EDA) is in charge of the improvement project? While the EDA led the Focused Area Study, since the improvements are City improvements, it is understood that all infrastructure and finance related decisions will be forwarded to the City Council only. FINANCIAL IMPACT Staffls recommendation is to begin the AUAR process for the project, and to prepare preliminary engineering documents for the first phase. These costs would be paid via the City's development fund. To begin the environmental assessment, staff will prepare an RFP, with the Council ultimately approving the contract prior to work. ATTACHMENTS Phase plan Cost breakdown (budgeting estimates based on 2010 construction costs) Action Motion by Second by Vote Follow Up N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-13-10\FAST Joint EDA CC.docx CONSTRUCTION PHASE I PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6 ROAD CONSTRUCTION PHASES 208.200 ~,~ ~: 1 ~1 FOCUSED AREA STUDY cML i~1Ver NO ~TO SCALE 171st FAST Implementation Preliminary Project Budgeting Attached figure identifies the location of the street and utility improvements to be completed in each of the Phases detailed below. The project costs, identified below in 2010 dollars, have been tabulated for budgeting purposes. More detailed estimates will be prepared as the specific phases move forward. Phase 1 Project Length - 2900 LF New Area Opened for Development - 20 Acres Component Construction Cost Engineering and Administration Cost Street $1,160,000.00 $ 208,800.00 Storm Sewer $217,500.00 $39,150.00 Watermain $217,500.00 $39,150.00 Sanitary Sewer $203,000.00 $36,540.00 Right of Way $0.00 $50,000.00 Total $1,798,000.00 ~373,64U.UU Phase 2 Project Length - 3350 LF New Area Opened for Development - 64 Acres Component Construction Cost Engineering and Administration Cost Street $1,340,000.00 $241,200.00 Storm Sewer $251,250.00 $45,225.00 Watermain $251,250.00 $45,225.00 Sanitary Sewer $234,500.00 $42,210.00 Right of Way $0.00 $0.00 Total $2,077,000.00 5373,86U.uu Phase 3 Project Length - 3200 LF New Area Opened for Development - 75 Acres Component Construction Cost Engineering and Administration Cost Street $1, 280,000.00 $230,400.00 Storm Sewer $240,000.00 $43,200.00 Watermain $ 240,000.00 $43, 200.00 Sanitary Sewer $224,000.00 $40,320.00 Right of Way $0.00 $575,000.00 Total $1,984,000.00 S9:3L,1LU.UU 12/08/2010 Phase 1 Total Cost $2,171,640.00 Phase 2 Total Cost $2,450,860.00 Phase 3 Total Cost $2,916,120.00 171st FAST Implementation Preliminary Project Budgeting Phase 4 Project Length - 3800 LF New Area Opened for Development - 0 Acres Component Construction Cost Engineering and Administration Cost Street $1,520,000.00 $273,600.00 Storm Sewer $285,000.00 $51,300.00 Watermain $285,000.00 $51,300.00 Sanitary Sewer $266,000.00 $47,880.00 Right of Way $0.00 $575,000.00 Total $2,356,000.00 $999,080.00 Phase 5 Project Length - 0 LF New Area Opened for Development - 0 Acres Component Construction Cost Engineering and Administration Cost TH 10 Turn Lanes $500,000.00 $90,000.00 Signal System $400,000.00 $72,000.00 Right of Way $0.00 $50,000.00 Total $900,000.00 $212,000.00 Phase 6 Project Length - 0 LF New Area Opened for Development - 0 Acres Component Construction Cost Engineering and Administration Cost Interchange $17,000,000.00 $4,400,000.00 Utility Relocation $1,000,000.00 $180,000.00 Right of Way $13,000,000.00 Total $18,000,000.00 $17,580,000.00 12/08/2010 Phase 4 Total Cost $3,355,080.00 Phase 5 Total Cost $1,112,000.00 Phase 6 Total Cost $35,580,000.00