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SW Arterial, Hwy 20 Interchange Competitive RISE ApplicationMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Dubuque Industrial Center South - US Highway 20 Interchange Competitive RISE Grant Application DATE: February 1, 2012 Dubuque bierd All- America City 1 2007 Assistant City Engineer Bob Schiesl recommends City Council approval of a Resolution endorsing the support for the City's RISE grant application for the development of the proposed Dubuque Industrial Center South — US Highway 20 Interchange. The estimate of probable cost for the Dubuque Industrial Center South - US Highway 20 Interchange project is $26.9 million, which includes construction and engineering services. The cost projection excludes the cost of the east access frontage road which will function as a local City street serving property to the southwest of the interchange which would not be considered eligible for RISE funding. The application requests that the State fund up to 50% of the interchange and roadway improvements (excluding sidewalks, street lights, water, sewer, etc.) or approximately $8.1 million of the eligible costs with a RISE grant appropriation. The remainder of the funding has already been programmed in the Iowa DOT 5 -Year Highway Transportation Improvement Program ($17.8 million) for the proposed US Highway 20 - Seippel Road Interchange, and approximately $1 million in local DMATS Enhancement funds. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Robert Schiesl, Assistant City Engineer Gus Psihoyos, City Engineer Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager Gus Psihoyos, City Engineer FROM: Robert Schiesl, Assistant City Engineer SUBJECT: Dubuque Industrial Center South - US Highway 20 Interchange Competitive RISE Grant Application DATE: February 1, 2012 INTRODUCTION Dubuque kittetil All-America City t 2007 This memorandum requests City Council approval of a resolution endorsing the support for the City's RISE grant application for the development of the proposed Dubuque Industrial Center South - US Highway 20 Interchange. BACKGROUND The Iowa Department of Transportation (Iowa DOT) administers the Revitalize Iowa's Sound Economy (RISE) program that provides funding in support of local and /or regional economic development efforts. The RISE grant funding may be used to assist construction of roadways to support economic development initiatives. DISCUSSION Dubuque is the regional economic center for the Iowa, Illinois and Wisconsin tri -state area. With the successful development of the Dubuque Industrial Center West (DICW), the City is planning for its continued future economic growth with the next phase of industrial park development with the construction of the new Dubuque Industrial Center South, immediately adjacent to Seippel Road and the US Highway 20 corridor. The attached resolution endorses and authorizes staff to submit an application for RISE grant funding for the development of a proposed US Highway 20 Interchange near Seippel Road that will provide enhanced access to the new industrial sites in the Dubuque Industrial Center South and will provide a connection to the future Southwest Arterial. The construction of the Dubuque Industrial Center South - US Highway 20 Interchange is essential to the long -term economic development plans for the City of Dubuque and Greater Dubuque Development Corporation (GDDC). The City and GDDC are actively recruiting new industry and are working closely with the Iowa Economic Development Authority (IEDA) in the marketing of the City's industrial parks. The City and GDDC have had great success in recruiting new and expanding businesses and have sold a majority of the development lots in the Dubuque Industrial Center West, with limited acres remaining. The creation of Dubuque Industrial Center South, with a variety of lot sizes, including larger developable lots is critical for the continued growth and success of the regional economy. The new Dubuque Industrial Center South site will consist of an approximate 175 -acre development (formerly the South Siegert Farm) and approximately 48 acres of property to be purchased from the Dubuque Metropolitan Solid Waste Agency. Preliminary improvement plans indicate that seven (7) or more industrial lots will be developed as part of the project. The existing traffic volume on US Highway 20 is 20,800 vehicles per day (VPD) and the projected traffic volume by 2040 is 40,000 vehicles per day. The existing at -grade intersection access to US Highway 20 from Seippel Road will not accommodate the amount of traffic that will be generated by the new industrial park development. There are already safety concerns with the existing at -grade intersection from larger commercial vehicles entering and exiting the roadway at US Highway 20. With the current delay that semi - tractor trailers are experiencing on Seippel Road, waiting for a safe gap in traffic on US Highway 20 to enter and travel either east bound or west bound directions, this traffic delay condition will significantly increase as additional commercial vehicles trips are generated from the Dubuque Industrial Center South development. With the high visibility from the adjacent US Highway 20 corridor in combination with the safe and efficient operations of an access interchange at Seippel Road, the future industrial sites in the new Dubuque Industrial Center South will be in high demand. From a business recruitment and retention perspective and long -term sustainable economic development of Dubuque's Industrial parks (West and South), traffic safety and delays at the existing US Highway 20 and Seippel Road at -grade intersection would be considered negative impacts. Additionally, the development of an interchange at US Highway 20 and Seippel Road is consistent with the Iowa DOT's overall master plan to implement Priority 1 access control along the US Highway 20 corridor, between Dubuque and Peosta. The development of a new interchange at this location will allow for the eventual removal of six (6) existing at -grade intersections on US Highway 20. The interchange will also provide a connection to the future Southwest Arterial which will provide an alternate, direct and efficient bypass around the City which will provide significant travel time savings by avoiding the numerous signalized intersections while reducing traffic volumes and congestion on US Highway 20. PROJECT COST & FUNDING The estimate of probable cost for the Dubuque Industrial Center South - US Highway 20 Interchange project is $26.9 million which includes construction and engineering services. The cost projection excludes the cost of the east access frontage road which will function as a local City street serving property to the southwest of the interchange which would not be considered eligible for RISE funding. The proposed funding for the project is as follows: Fund Description Amount Iowa DOT 5 -Year Highway Transportation Improvement Program (National Highway System Funds) Iowa DOT RISE Grant Funding Local DMATS Enhancement Funds Total Project Funding $17,760,000 8,132,042 1,007,958 $26,900.000 The application requests that the State fund up to 50% of the interchange and roadway improvements (excluding sidewalks, street lights, water, sewer, etc.) or approximately $8.1 million of the eligible costs with a RISE grant appropriation. The remainder of the funding has already been programmed in the Iowa DOT 5 -Year Highway Transportation Improvement Program ($17.8 million) for the proposed US Highway 20 - Seippel Road Interchange, and approximately $1 million in local DMATS Enhancement funds. RECOMMENDATION I recommend that the City Council endorse the submission of an application for RISE grant funding for Dubuque Industrial Center South - US Highway 20 Interchange that will provide access to the new industrial development sites and a connection to the future Southwest Arterial. The attached resolution contains provisions required by Iowa DOT, including an endorsement of the project and a certification that the roadway will be and shall remain dedicated for public use. The Iowa DOT also requests assurance that the City will assume responsibility for the ongoing maintenance of the roadway improvement however; this provision will need further discussion with the State since the Iowa DOT normally assumes ownership and maintenance for interchanges on the primary highway system. If the City is successful, the approval of the grant funding agreement and finalization of the local funding match required will be presented to City Council. ACTION TO BE TAKEN I recommend that the City Council adopt and authorize the Mayor to sign the attached resolution in support of the RISE grant application for the Dubuque Industrial Center South - US Highway 20 Interchange. Attachments Prepared by: Robert Schiesl, Assistant City Engineer cc: David Heiar, Economic Development Director Chandra Ravada, ECIA F \PROJECTS \SW ARTERIAL - IA HYW 32 \RISE Grant Application - 2012 RESOLUTION NO 26 -12 A RESOLUTION ENDORSING THE SUBMISSION OF A REVITALIZE IOWA'S SOUND ECONOMY (RISE) APPLICATION TO THE IOWA DEPARTMENT OF TRANSPORTATION FOR THE CONSTRUCTION OF THE PROPOSED US HIGHWAY 20 AND SEIPPEL ROAD INTERCHANGE 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 and national industries in the development of industrial properties in the new Dubuque Industrial Center South; 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 and infrastructure 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 grant funding to provide roadway and interchange access to new industrial sites in the Dubuque Industrial Center South. Section 2. That the City of Dubuque hereby certifies that said roadway improvements will be and shall remain dedicated for public use and that funding will be available to finance the City's portion of project costs. Section 3. That the City of Dubuque hereby agrees to discuss with the Iowa Department of Transportation the responsibility for and ongoing maintenance of said roadway improvements to ensure that the roadway will be adequately maintained in the future. Section 4. That the City Manager is authorized to sign, 2 n behalf of the City Council, the application for RISE grant funding. Passed, approved and adopted this 6th day of February 2012. ATTEST: Kevin S Firnstahl, City Cler F: \PROJECTS \SW ARTERIAL - IA HYW 32 \RISE Grant Application - 2012 Roy D. Buol, Mayor