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Competetive RISE Application_7th and Commerical StreetsMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Competitive RISE Application for 7th and Commercial Streets DATE: August 12, 2011 Dubuque Ihttil All-America City 2007 Economic Development Director David Heiar is recommending submittal of a Revitalize Iowa's Sound Economy (RISE) grant application to the Iowa Department of Transportation for the reconstruction of 7th Street and Commercial Street from Iowa Street to where the street goes under the railroad tracks and enters the Port of Dubuque. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:eml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director kJ SUBJECT: Dubuque AtIacI1 2007 Competitive RISE Application for 711h and Commercial Streets DATE: August 10, 2011 INTRODUCTION This memorandum requests City Council approval of a Resolution endorsing a RISE grant application for 7111 and Commercial Streets. BACKGROUND The Iowa Department of Transportation (IDOT) administers the Revitalize Iowa's Sound Economy (RISE) program which provides funding in support of local and /or regional economic development efforts. The RISE Funding may be used to assist construction of roadways to support economic development initiatives. A local match of not less than fifty percent is required in the Competitive RISE program. The City plans to use excess Downtown Urban Renewal TIF proceeds to fund the local match. DISCUSSION The attached Resolution authorizes an application for RISE funding for a 3,975 foot urban industrial street providing access to Industrial Riverfront properties. 711h and Commercial Streets also serve as a connector between the Historic Millwork District and the Port of Dubuque (see attached map). This street reconstruction project will provide improved access to the 11 acre industrial site currently leased by Gavilon (Peavey Grain) and the site currently used by Alliant as a coal generating facility. Gavilon plans to expand the fertilizer portion of their business at this site. They anticipate another 1,200 -1,600 trucks annually will cross Commercial Street and that they will add 1 or 2 people to their payroll. Alliant has indicated the company's intent to cease operating a generating facility by 2014. This creates an opportunity for alternative industrial development at this port site. The attached Resolution contains provisions required by IDOT, including an endorsement of the project, a certification that the roadway is dedicated to public use and will remain so dedicated and the assurance that the City assumes responsibility for the ongoing maintenance of the roadway improvement. The total estimated cost of the street project is $4,100,000 which includes design and engineering and construction services. The application requests that the State fund 50% of the actual street improvements (does not include sidewalks, street lights, water, sewer, etc.) or approximately $1,900,000 of the eligible costs with a RISE grant. The balance of the street project cost (approximately $2,200,000) will be funded by excess Downtown Urban Renewal TIF. RECOMMENDATION I recommend that the City Council endorse the submission of an application for a RISE grant for 7th and Commercial Streets. This project will provide improved access to Industrial Riverfront properties and will provide a connector street between the Historic Millwork District and the Port of Dubuque. If the City is successful with this application, we will return to the City Council for approval of the grant agreement and finalization of local match funding. ACTION STEP The action is to adopt the attached Resolution. Attachment cc: Bob Schiesl Ron Turner Aaron DeJong Nathan Steffen Jerry Schroeder Chandra Ravada F: \USERS \Econ Dev \RISE \7th and Commercial\20110811_RISE app memo to MVM -7th and Commercial.docx company's intent to cease operating a generating facility by 2014. This creates an opportunity for alternative industrial development at this port site. The attached Resolution contains provisions required by IDOT, including an endorsement of the project, a certification that the roadway is dedicated to public use and will remain so dedicated and the assurance that the City assumes responsibility for the ongoing maintenance of the roadway improvement. The total estimated cost of the street project is $4,100,000 which includes design and engineering and construction services. The application requests that the State fund 50% of the actual street improvements (does not include sidewalks, street lights, water, sewer, etc.) or approximately $1,900,000 of the eligible costs with a RISE grant. The balance of the street project cost (approximately $2,200,000) will be funded by excess Downtown Urban Renewal TIF. RECOMMENDATION I recommend that the City Council endorse the submission of an application for a RISE grant for 7th and Commercial Streets. This project will provide improved access to Industrial Riverfront properties and will provide a connector street between the Historic Millwork District and the Port of Dubuque. If the City is successful with this application, we will return to the City Council for approval of the grant agreement and finalization of local match funding. ACTION STEP The action is to adopt the attached Resolution. Attachment cc: Bob Schiesl Ron Turner Aaron DeJong Nathan Steffen Jerry Schroeder Chandra Ravada F: \USERS\Econ Dev \RISE \7th and Commercial\20110811_RISE app memo to MVM -7th and Commercial.docx Prepared /Return to: David Heiar Economic Development 50 W. 13 St. Dubuque, IA 52001 (563) 589 -4393 RESOLUTION NO 272-11 A RESOLUTION ENDORSING THE SUBMISSION OF A REVITALIZE IOWA'S SOUND ECONOMY (RISE) APPLICATION TO THE IOWA DEPARTMENT OF TRANSPORTATION FOR THE CONSTRUCTION OF 7 AND COMMERCIAL STREETS Whereas, the City of Dubuque believes that economic development opportunities require developable industrial land with adequate public infrastructure in order to retain and attract new job creating businesses and industries to this community; and Whereas, the City of Dubuque is working with local industries in the redevelopment of riverfront properties; and Whereas, the Iowa Department of Transportation, through its Revitalize Iowa's Sound Economy (RISE) Competitive Project Funding, has monies available for the development of public roadways to support economic development opportunities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby endorses the application to the Iowa Department of Transportation for RISE Competitive funding to provide roadway access to riverfront industrial sites. Section 2. That the City of Dubuque hereby certifies that the roadway improvements will be dedicated to public use and will remain so dedicated to public use and that Tax Increment Financing will be available to finance the City's portion of project costs. Section 3. That 7 and Commercial Streets provide access to industrial riverfront properties. Section 4. That the City of Dubuque hereby assumes responsibility for and ongoing maintenance of these roadway improvements and ensures that the roadway will be adequately maintained in the future. Section 5. That the-City Manager is authorized to sign, on behalf of the City Council, the application for RISE funding. PASSED, APPROVED and ADOPTED this 15 day of August, 2011. Roy D. Buol, Mayor F: \USERS \Econ Dev \RISE \7th and Commercial\20110811_Res - RISE Application 7th and Commercial.docx Dubuque V NORTH SCALE:NONE CITY OF DUBUQUE ENGINEERING DEPARTMENT GTT ira� �! MEET 191 aTMEET dam` F A X /MOM .MO�f (.qaMVa (XXX )MON ..••