05/01/2006 Council Packet - Laserfiche WebLink

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• Funding Gap $2,100,000 Staff has attempted to identify additional (non property tax) City funding to cover the gap. This is based on the following premises: 1. The $2.5 million invested in interim improvements will be, for the most part, lost when the ultimate interchange is constructed. 2. The interim improvements will negate, for the foreseeable future, any opportunities for federal funding for the ultimate project. 3. When the interchange project is constructed the City will still have a local share of the costs. The City does have the ability and capacity to use Municipal State Aid Street dollars for the project. The City currently receives approximately $435,000 annually from the State for construction of state aid qualifying street improvements. State law does allow for City's to advance funding for up to five years or issue Municipal State Aid bonds to fund eligible projects. Staff has met with Mn /DOT's Municipal State Aid Engineer and completed a preliminary financial review. At this time it appears that this is a viable option for the City to pursue. However, the use of these funds would temporarily delay new improvements to the City's state aid system. At this time the only proposed project that would potentially be delayed is the Holly Drive Phase II reconstruction from Holly Court to County Road J. Staff is anticipating further review of our state aid needs in Tight of this funding option. If the City Council determines that the use of Municipal State Aid funding is a viable option for the interchange improvements staff would continue to pursue additional funding for the interchange to off set these expenditures. Additional funding options to be pursued include: 1. TH 49 turnback funding. Staff is currently working with Mn /DOT to finalize Mn /DOT funding available from the .28 mile portion of former Trunk Highway 49 that was turned back to the City in 1996. 2. Federal Appropriations bill. If the interchange project is moving forward staff will continue to work with our federal representatives to obtain funding. However, it should be noted that this funding is limited. 3. Continue to work with Mn /DOT staff to identify other state funding options. Again, a decision on which project to pursue is time critical. Based on existing funding and development of Woods Edge a project will need to be constructed in 2007. Additionally, the scope of the project will impact the right -of -way acquisition process. illIf the council decides to proceed with this funding option the project schedule would be as follows: