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Federal Appropriations Priority D~ ~</k.~ MEMORANDUM December 28, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amended City of Dubuque Priorities for Federal Appropriations Economic Development Director Bill Baum is recommending City Council approval of the amended "City of Dubuque Federal Legislative Priorities." The major change is that a new Section 8 has been added to the report to discuss the fact that the City is working with a local developer to purchase and redevelop the Smithfield site. As part of that project, the City may seek HUD Section 108 guaranteed loan funds and a Brownfield Economic Development Initiative (BEDI) grant to assist in financing the costs of acquisition, demolition and environmental remediation. I concur with the recommendation and respectfully request Mayor and City Council approval. (Ll~LI L{~ (il[ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director D~ ~</k.~ MEMORANDUM December 28, 2004 FROM: Michael Van Milligen, City Manager William Baum, Economic Development Directo~ Amended City of Dubuque Priorities for Federal Appropriations TO: SUBJECT: INTRODUCTION AND DISCUSSION At the December 20, 2004 City Council meeting, I submitted a report entitled the "City of Dubuque Federal Legislative Priorities." Since that time, an additional priority regarding the Smithfield property has come to my attention and has been included in the report. A new Section 8 has been added to the report to discuss the fact that the City is working with a local developer to purchase and redevelop the Smithfield site. As part of that project, the City may seek HUD Section 108 guaranteed loan funds and a Brownfield Economic Development Initiative (BED I) grant to assist in financing the costs of acquisition, demolition and environmental remediation. In addition, the Dubuque County Historical Society has asked that Section 4 America's River at the Port of Dubuque - Next Phase of Museum & Aquarium Development be amended to add the following language: .. .as it explores the Mississippi River's relationship to the Gulf of Mexico with an expanded exhibit and educational program. In addition, the Museum & Aquarium continues to build partnerships along the entire length of the river and throughout the country and works to establish and advance its reputation as the lead national river interpretive and environmental education center for the nation. This language corrects a statement that said no details or development schedule was available at this time. RECOMMENDATION I recommend City Council approval of the amended report that is attached to this memorandum. F: \U SE RS\WBaum \F ederal In itiatives\amended memotomikeaboutO5priorities. doc December 2004 Amended CITY OF DUBUQUE FEDERAL LEGISLATIVE PRIORITIES 1. Transportation IA32 (Southwest Arteria ): The Dubuque City Council, the Dubuque County Board of Supervisors, and Dubuque Metropolitan Planning Organization (DMA TS) has identified the completion of the IA 32 (Southwest Arterial) as the No.1 surface transportation priority in the Dubuque area. The IA 32 connects the new Dubuque Technology Park on U.S. 61/151 with the new Dubuque Industrial Center West, and the existing Dubuque Industrial Center near U.S. 20. The highway then extends north to John Deere Dubuque Works. Since October 2001, four companies have made expansion decisions at the Dubuque Industrial Center West, based upon assurances that US 32 was under study and construction was in the Iowa Department of Transportation five-year plan. The largest of the companies, McGraw Hill Publishing Company made a decision to locate a new 330,000-square-foot distribution center in the Dubuque Industrial Center West. The completion of Highway 32 is vital to the other expansion announcements: Adams Company, Vessel Systems, and Giese Manufacturing. Other companies asking for a connection between U.S. 20 and U.S. 61/151 include John Deere, Nordstrom Distribution Center, AY. McDonald, Swiss Valley Farms, Flexsteel, and Dubuque Stamping and Manufacturing. Total Project Cost $71,000,000. The State of Iowa has committed $21 million for the project in the Iowa Department of Transportation's five-year plan. The Metropolitan Planning Organization, DMATS, has committed $7 million in Surface Transportation Program funds for the facility. The City is also seeking financial assistance through the State of Iowa Department of Transportation Revitalize Iowa's Sound Economy (RISE) program. In February 2003, Senator Tom Harkin announced federal budget approval of $1,900,000 to assist in accomplishing this work. The Environmental Review process is complete and a final Finding of No Significant Impact on the Environment has been prepared and is scheduled for publication in January of 2005. The City has agreed to manage the next phase of the project, the Preliminary Engineering work. A consultant (Earthtech) has been selected, and the City/Iowa DOT and Earthtech are finalizing a formal agreement. This work should begin in early 2005 and be completed by summer of 2006. The funding "gap" is $41 Million. The City is requesting this project be identified and authorized in the next federal transportation bill. Current Status: Congressman Jim Nussle provided $20 million for this project in the new transportation reauthorization bill. The bill will need to be revived in 2005 by the new Congress. The City's request is that the $20 million be including in the new version of the bill in 2005. The City, County, and IDOT will be ready for the next phase of the project in fiscal year 2006. Funding is needed for property acquisition and final design. Funding similar to the previous $1,900,0000 for these activities is requested in fiscal year 2006. Capacity Improvements to U.S.20/Julien Dubuque BridQe The U.S. 20/Julien Dubuque Bridge spans the Mississippi River and provides one eastbound and one westbound lane of traffic. On either side of the river, the highway immediately expands to four or more lanes. The result is a bottleneck in traffic on both sides of the bridge. This link is important for an east-west connection between Dubuque and other communities. To the west: Galena, III.; Rockford, III.; and Chicago. To the east: Waterloo, Iowa and the 1-35 interchange. This project is a very high priority with the City Council and the Metropolitan Planning Organization, DMATS. The City of Dubuque appreciates the $28 million federal commitment to the bridge from Congressman Nussle secured by Dubuque's Congressional delegation. Current Status: The location study and environmental documentation are complete. IDOT has selected the firm of Parsons of Chicago, Illinois, in conjunction with WHKS of Dubuque, to perform the preliminary and final design of the bridge, bridge approaches, and roadway improvements. The City had hoped to see completion of Phase I construction plans for the new approaches in June 2003. Phase I construction on the bridge approaches and roadway improvements on both sides of the River was scheduled for the latter part of Calendar Year 2003 and Calendar Year 2004 with the current money available. New cost estimates raising the total bridge project cost from $96 Million to $165 Million has derailed these plans. The design and land acquisition will be completed with existing funds; however, no funding is currently available for construction of the project. Additionally, the City has been informed of City responsibility to pay the cost of relocation of utilities, estimated to be approximately $3,000,000. Latest estimates to complete the project are $130 Million. Therefore, the City is requesting additional federal funding assistance in the next federal transportation bill. The City also requests language be inserted into the bill providing that the $3,000,000 in municipal utility relocation is an activity eligible for federal cost sharing. 2 Dubuque Reqional Airport The Airport Commission has completed the Airport Terminal Study, which has been accepted by the FAA. The study identified the following needs: Terminal Buildinq The Benefit Cost Analysis for the Dubuque Regional Airport's new commercial service terminal has been completed and accepted by the Federal Aviation Administration. This makes the new terminal project eligible for federal funding currently programmed to begin in Federal fiscal year 2006. The land and design phases essentially provide budget numbers for the following construction phases of the new terminal development. The airport will use their entitlement and will need discretionary funding in the amount of $1,625,000 in 2006 to accomplish land acquisition and terminal/area design. Control Tower Radar The Dubuque Regional Airport is currently third busiest airport in operations for the State of Iowa. Our objective is to increase control tower coverage in the evening by two hours. With continued increase in corporate and general aviation activity, radar is a needed safety enhancement for the airport. A major contributor to our operational growth is the University of Dubuque, which in the past five years has increased its aviation flight students from 91 to 202 and aircraft on the field from 13 to 23. Currently the Airport is not eligible for the FAA D-Brite program due to regulatory secondary radar limitations, but the Airport has been advised it has been placed on a list for a category of radar currently not funded. It is the Airport's intent to install this system through the FAA Facilities and Equipment with 100% federal dollars estimated at $500,000. 3 2. Bee Branch Watershed Flood MitiClation Project Purpose: To limit flooding in low/moderate income neighborhoods. In 1999, an unusually intense spring storm deluged Dubuque with rainfall. The storm produced in excess of four feet of stormwater in city streets and five feet of stormwater in basements, and resulted in a Presidential Disaster Declaration for Dubuque County. Flood damage devastated hundreds of homes in the City of Dubuque. At the time of the flood, the City was in the process of adopting a Stormwater Management Plan. On July 23, 2001, HDR Engineering, of Omaha, Neb., the consulting firm hired by the City to produce the Stormwater Management Plan, presented its findings to City Council. One solution is an open waterway proposal for solving the Bee Branch Stormwater problems. This solution has been controversial, and is therefore, under continuing study. However, an important segment of the project, not involvinq the open waterwav concept is not controversial, and will assist greatly in mitigating the problems with the Bee Branch: The expansion of the 32"d Street detention basin, at a cost of $4,000,000 would double the size of the existing basin. When completed, the basin would reduce peak runoff flows from the 1 OO-year rainstorm by 69%. This significant reduction will lesson the threat of flood damage to the neighborhood, and assist greatly in solving the problems in the Bee Branch. The City is requesting an FY06 earmark through EPA's State and Tribal Grant program "STAG." Any reasonable amount of funding for this project would be appreciated. The City has approved the establishment of a storm water utility, and therefore the local match is available for this project. 4 3. DubuQue Post Office Renovations The City is very concerned about the ongoing deterioration of the Federal Building downtown currently housing the Post Office. Our understanding is that the Social Security Administration will soon be moving out of the facility, leaving only the Post Office operation in this magnificent building. City officials have met with the Regional Administrator Bradley Scott, Jim Ogden, Deputy Assistant Regional Administrator, and other GSA representatives concerning the maintenance of the building and the process for disposing of the property to the City or Dubuque Initiatives as a potential solution. The building needs approximately $2 million in improvements. GSA has indicated that after the building is declared excess inventory, and no other federal agency has a need for it, the property is determined "surplus", the City or Dubuque Initiatives could purchase the property, most likely for $1. However, the GSA must complete a property disposal procedure that could take eighteen months. The City requests the Congressional delegation work with GSA, the City and Dubuque Initiatives to fund renovations to this building, and encourage federal agencies to lease space in this downtown facility. 4. AMERICA'S RIVER AT THE PORT OF DUBUQUE Intermodal Facility The City of Dubuque wishes to prepare a study to explore needs and justification for a Downtown Transportation Center Intermodal Facility for the Port of Dubuque. The type of study will include a parking and transit component and will be used to determine the location and composition of a facility, establish a parking and transit plan, and operating revenue. The cost of the study is estimated to be $130,000 with a total project cost estimate of $10 million. Similar projects in Iowa have been funded between a range of $7.5 million for the Near Southside Transportation Center Intermodal Facility in Iowa City, Iowa to $10 million for the UNI Multi- modal project in Waterloo. Next Phase of Museum & Aquarium Development The City Council supports the efforts of the Dubuque County Historical Society in the next phase of the development of The National Mississippi River Museum & Aquarium as it explores the Mississippi River's relationship to the Gulf of Mexico with an expanded exhibit and educational program. In addition, the Museum & Aquarium continues to build partnerships along the entire length of the river and throughout the country and works to establish and advance its reputation as the lead national river interpretive and environmental education center for the nation. 5 5. Homeland Security Regional Emergency Responder Training Facility PROJECT SUMMARY The Dubuque Fire Department is part of the group developing the training facility as a joint venture with all emergency response agencies in Dubuque County. OUR VISION: To develop an emergency responder training facility including training tower, an indoor/outdoor evolution lab and classroom to enable firefighters, law enforcement officers, EMS personnel, and safety workers in local manufacturing/commercial industry to safely train in real-life emergency situations. Firefighters, law enforcement officers, and EMS workers will now be able to participate in joint training exercises, enabling: -Preparation for multiple disaster scenarios -The sharing of ideas and training techniques -Introduction to and training with new and more efficient equipment -Team building between departments and communities FUNDING CHALLENGES: Private/public partnerships have been established to assist with funding this project. However, additional funding assistance is necessary. Since much of the training will be related to homeland security disasters, we are hopeful that some funding may be possible from the federal government. The total cost of the facility is $2,600,000. 6. Federally Qualified Community Health Center for Dubuque Access to primary health and dental care has been identified as a critical need for the citizens of Dubuque County, particularly low-income children and families. In addressing this crucial issue, many organizations and agencies have together to develop a community health center for Dubuque and the Tri-State area: Mercy Medical Center - Dubuque Finley HospitalNNA Medical Associates Clinic & Health Plan Dubuque Internal Medicine Dubuque OB-GYN Tri-States Independent Physician's Association Gannon Center for Community Mental Health Dubuque County Health Department Iowa Department of Public Health Iowa Department of Human Services Hillcrest Family Services Sisters of St. Francis Clarke College Northeast Iowa Community College 6 Dubuque Community Schools City of Dubuque The health center envisioned by this community group would be a non-profit organization structured so that it could receive federal funding under the Health Centers Consolidation Act of 1996 as amended by section 330 of the Public Health Service Act. The clinic would provide comprehensive primary care services to all individuals within the center's service regardless of ability to pay. Specific services that the center would provide either directly, through contract, or by formal referral arrangements would include: Primary health care services by physicians and, where appropriate, allied health professionals Diagnostic laboratory services Diagnostic x-ray services Preventive health services Patient case management Pharmacy services needed to complete treatment Preventive dental services Emergency services Transportation for patients who would otherwise lack access to services. Dubuque is the only major metropolitan area in Iowa without a community health center. The Dubuque community is now coming together in an effort to create a community health center, which will meet the identified health needs of our citizens. In February of 2003, the City was informed of a planning grant of $50,000 to Clarke College from the FY 03 appropriations bill. We are grateful to the Congressional delegation for the support. A recent implementation grant application was denied; application will be resubmitted for $650,000 in Fiscal Year 06. 7. Support Clean Coal Technoloqy The City Council supports the efforts of Rentech, Inc (Royster-Clark Nitrogen) owner of a 830 ton per day natural gas-fed nitrogen fertilizer production plant in East Dubuque, Illinois to convert the plant into a coal fed gasification plant using Illinois Coal instead of expensive natural gas. The new and expanded gasification process will generate the synthesis gas necessary to produce nitrogen fertilizer, Fischer-Tropsch (FTO) ultra-clean fuels and surplus electricity. The company currently employs 110 high paying quality jobs at the facility. During the conversion, 1000 construction workers will be on the site. If the conversion to a coal fed gasification plant is successful, the company will add 100 new positions to the workforce. This project would provide economic benefits to the entire Dubuque Urban Area. The City supports this effort and encourages the delegation to work with the company to provide tax credits for clean coal technology in the next national energy bill. 7 8. Smithfield Site Redevelopment The City Council supports the private efforts to purchase and redevelop the former Dubuque Packing Company property along 16th Street, previously operated by Farmland Foods as a meat packing plant prior to purchase by Smithfield. Smithfield closed down the plant without ever operating the facility and the property has been vacant since 2000. The property's prime location along US Hwy 61/151 at the gateway to the community from Wisconsin is a clear and visible blight that continues to deteriorate. The facility is an antiquated and obsolete multi-story industrial building that suffers from environmental problems. The demolition of the building and the redevelopment of the site will provide new economic opportunities for the adjacent low and moderate income neighborhood and for the community generally. HUD funds are available to assist communities in efforts to improve environmentally distressed property, provide incentives to encourage redevelopment that provides job opportunities for low and moderate income persons and lead to economic revitalization. Local developers are ready to tackle this brownfield property subject to public financial assistance to create an economically viable project. The City supports this private redevelopment effort and encourages the delegation to support the City's application for HUD Section 108 loan funds in association with an application for $2 million in Brownfields Economic Development Initiative (BEDI) grant funds to redevelop the Smithfield site. F:\USERS\WBaum\Federallnitiatives\Oecember 2004 update to CITY Priorities-Amended.doc 8