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SW Arterial IA 32 RISE Application Info ]5(;~~E ~Yk.~ MEMORANDUM September 22,2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Updated Information for RISE Application for IA 32 (Southwest Arterial) In 2003 the City Council approved an application for $10,000,000 from the Iowa Department of Transportation's Revitalize Iowa's Sound Economy (RISE) Program. Since the submission, our Congressional delegation has been successful in obtaining an earmark in the 2005 Transportation Bill of $26,180,000. IDOT staff has requested updated information concerning this project. Economic Development Director David Heiar recommends City Council approval of an updated RISE application for the IA 32 (Southwest Arterial) in the amount of $12,000,000. I concur with the recommendation and respectfully request Mayor and City Council approval. l~~ i~;(lljL Mic ael C. Van Mllhgen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director (.'J -,'--, \..,; DD~~E ~~~ MEMORANDUM September 19, 2005 FROM: Michael Van Milligen, City Manager ( , Dave Heiar, Economic Development Director\, ; j :~ TO: SUBJECT: Updated information for RISE application for IA 32 (Southwest Arterial) INTRODUCTION The purpose of this Memorandum is to request City Council approval of a resolution approving an updated RISE application for the IA 32 (Southwest Arterial) in the amount of $12,000,000. BACKGROUND In 2003 the City Council approved an application for $10,000,000 from the Iowa Department of Transportation's Revitalize Iowa's Sound Economy (RISE) program. Since the submission, our Congressional delegation has been successful in obtaining an earmark in the 2005 Transportation Bill of $26,180,000. IDOT staff has requested updated information and narratives concerning the project. DISCUSSION Staff has prepared the updated information for City Council review and approval. The cost of the interim project is now estimated at slightly more than $69 million. The request from the RISE program has been increased to $12,000,000. A schedule and updated narratives are also attached. Since this project is located in much of Dubuque County, outside the City of Dubuque, Dubuque County has been identified as a participating jurisdiction, and I will seek a supporting resolution from the Dubuque County Board of Supervisors. RECOMMENDATION I recommend the City Council approve the updated information for submission to IDOT. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F:\USERS\WBaum\SW Arterial- DMATS\MemotoMikeonupdated RISE.doc RESOLUTION NO 457-05 A RESOLUTION AUTHORIZING THE FILING OF AN AMENDMENT TO A RISE APPLICATION TO THE IOWA DEPARTMENT OF TRANSPORTATION FOR IOWA HIGHWAY 32 (SOUTHWEST ARTERIAL) Whereas, the City Council of Dubuque, Iowa has identified the completion of Iowa Highway 32 (Southwest Arterial) as the City's number one transportation priority, and Whereas, the Iowa Department of Transportation has funding available through the Revitalize Iowa's Sound Economy (RISE) to assist the State of Iowa in design and construction of Highway 32, and Whereas, an application has been approved by resolution #232-03 for RISE funding in the amount of $10 Million. Whereas, costs for the project have recently been updated, and an updated application has been prepared; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the filing of the attached updated application for $12,000,000 of RISE funding for the Iowa Highway 32 project is hereby approved. Section 2. That the Mayor is hereby authorized to execute, and the City Manager is hereby directed to submit said updated information to the Iowa Department of Transportation, together with other attachments as may be required. Passed, approved, and adopted this 3rd day of October, 2005. Joyce E. Connors, Mayor Pro-Tem Attest: Jeanne F. Schneider, City Clerk F:\USERS\WBaum\SW Arterial- DMATS\Resolution approving RISE app update.doc Fonn 260003 10-04wd ~~ Iowa Department of Transportation '* APPLICATION for RISE: COMPETITIVE RATING FUNDING for Local Development Projects GENERAL INFORMATION Applicant Name: City or County of Dubuque, Iowa Title: Economic Development Director Contact Person: Dave Heiar Complete Mailing Address City Hall, 50 West 13th Street Street Address and/or Box No. Dubuque City Iowa State 52001 Daytime Phone: 563 589-4393 Zip Area Code If more than one local government is involved in this roadway project, please state the highway authority, contact person, mailing address, and telephone number of the second agency. (Attach an additional page if more than two agencies are involved.) City or County of Dubuque County, Iowa Contact Person: Mike Felderman, County Engineer Complete Mailing Address 13063 Seippel Road Street Address and/or Box No. Dubuque City Iowa State 52002 Zip Daytime Phone: 563557-7283 Area Code Please complete the following: The proposed project is on the following type(s) of road: D City Street D Secondary Road IZI Primary Road (Length of Project in feet: 31700 ) If a primary road is involved, indicate the desired RISE funding source: IZI City IZI County IZI State This project involves IZI Development of a New Road D Improvement of an Existing Road D Both Has any part of this development or roadway project been started? IZI Yes D No If yes, please explain. Environmental Assessment andFONSI have been completed. Preliminary design is underway. This application is for RISE funding as a: D Loan IZI Grant D Combination Ifthis application is for a loan or a combination loan/grant, please state the proposed terms of repayment. (Include amount of principal to be repaid, proposed interest rate, length of repayment, etc.) If this application is for funding for two or three program years, please specify the amount of funding requested for each year: First year $ See attached schedule Second year $ Third year $ PROJECT INVESTMENT INFORMATION Estimated Total Capital Investment $ 57,180,000 ("Total Capital Investment" is defined in the Administrative Rules. Please attach a breakdown by major item, such as land, improvements to land, buildings, equipment and utilities. The cost of the roadway project, excluding RISE funds requested, should be included in these figures.) Private Investment $ 0 Public Investment $ 57,180,00 Total Cost of Roadway Project $ 69,180,000 $ 12,000,000 RISE Funds Requested for Roadway Project Matching Funds Available for Roadway Project (Assured or Anticipated) Source Amount $21,000,000 $26,180,000 $10,000,000 Assured? Yes Yes Yes 1. Iowa DOT 2. 2005 Transportation Bill (FHW AlIDOT) 3. Dubuque Metropolitan Transportation Study (MPO/STP) 4. DEVELOPMENT POTENTIAL INFORMATION This project involves D Attracting a New Development IZI Expanding an Existing Development D Retaining an Existing Development IZI Improving Access to an Existing Development DOther (Please describe.) Please identify the type(s) of development to be supported with the RISE project. (Be as specific as possible.) This project will support the development of the City's major industrial parks, the Dubuque Industrial Center West, and the Dubuque Technology Center, the 2005-06 expansion of the Dubuque Industrial Center West, and the 2010- 11 development of City owned industrial property along Seipple Road. Does the project involve relocation of economic activity from elsewhere in Iowa? If yes, please explain. What is the status of the economic development or activity to be supported by the RISE-funded roadway? (Please check the appropriate answer.) DYes IZI No D Applicant has a firm commitment for a new economic development, or expansion or retention of an existing development. (See "Required Documentation" - Item G.) D Applicant is negotiating with a specific firm(s) concerning a location, expansion or retention decision. (See "Required Documentation" - Item G.) IZI Negotiations are not underway, but applicant is seeking a specific type or types of economic development for the site. IZI Applicant is preparing or improving access to a site where future, unspecified development can occur. D Applicant is improving access to an existing development which has no immediate plans for expansion. Other (Please describe.) 2 ECONOMIC IMPACT INFORMATION Please estimate the number of permanent, direct jobs created and/or retained as a result of this project. (These numbers should not include construction or indirect "multiplier" jobs.) Total Direct Jobs Created 3200 Initial jobs (within first two years) 1350 Other future jobs (beyond first two years) 1850 Total Direct Jobs Retained If this roadway project supports a tourism or recreational development, please estimate the annual number of visitors. Current Estimated Increase Overnight Visitors Day Visitors from 100 or more miles away Day Visitors from less than 100 miles away Please estimate the number of acres (by type of development) which will be directly served by the RISE-funded roadway: Type of Development Served Industrial/manufacturing Commercial/ office/retail/wholesale Park/tourist/recreational Other Unknown Acres Currently Developed 350 Total Usable Acres 350 LOCAL COMMITMENT AND INITIATIVE INFORMATION Please indicate whether the following nonroadway factors intrinsic to the success of the development are in place: Yes No Land Assembled and Available for Sale or Lease........................... I:2J D Zoning Suitable for Proposed Use................................................... I:2J D Water............................................................................................... I:2J D Sanitary Sewer................................................................................. I:2J D Sewage Treatment Capacity............................................................ I:2J D Storm Drainage................................................................................ I:2J D Electricity........................................................................................ I:2J D Gas................................................................................................... I:2J D Telephone........................................................................................ I:2J D Permits (if applicable) ..................................................................... I:2J D Labor Force Training (if applicable) ............................................... I:2J D Rail Service (if applicable) .............................................................. D D Other (Please describe.) City is currently expanding the Dubuque Industrial Center West and this IA32 proiect is critical to our marketing the sites. If "No" is checked for any of the above, please describe what arrangements are being made for providing land, utility or other necessary services. 3 Please describe what economic development/marketing activities the applicant has been involved in within the recent past. For example, state whether the applicant has a local economic development organization or belongs to an area economic development organization. If so, state the name, address and contact person for each group. Also, describe the activities and accomplishments of the organization(s) such as the number of firms contacted, the volume of promotional materials mailed, the number of jobs or visitors attracted, and the number of dollars invested. See attachment TRANSPORTATION NEED INFORMATION Is the need for the roadway improvement identified by local plans, capital improvement programs, or other adopted local priorities? (Please explain.) YES. Iowa Highway 32 (Southwest Arterial) project has been designated as the top transportation priority in the Dubuque Urban Area. The project is part of the urban area's long range transportation plan, and the MPO, the Dubquue Metropolitan Area Transportation Study (DMA TS) has agreed to program $10,000,000 of STP funds to this project. DOCUMENTATION INFORMATION The following documents must be attached to this application. In the upper right-hand corner of each document, write the letter (shown below) which the document supports. (Please refer to the general instructions for an explanation of each item.) Please check that the following items are attached: A NARRATIVE describing the proposed total economic development and how the RISE project will support the development. A RESOLUTION or resolutions approved by the participating local governments. A NARRATIVE assessing existing conditions, outlining the proposed concept of the roadway project, and providing adequate transportation justification. A MAP identifying the location of the roadway project. A SKETCH PLAN of the project. A TIME SCHEDULE for the roadway project, and other development as appropriate. A LETTER OF COMMITMENT from the business or developer if the applicant indicates a firm commitment exists or negotiations are underway. An ITEMIZED BREAKDOWN of total roadway project costs. The attached form must be used. A NARRATIVE describing the associated economic development and jobs. DOCUMENTATION that the proposed road project and economic development are consistent with any regional or metropolitan area long-range transportation plans in effect for the RISE project location. o K. A NARRATIVE if the project involves the remediation or redevelopment of a brown field site. k8J A. k8J B. k8J c. k8J D. k8J E. k8J F. 0 G. k8J H. 0 1. k8J J. 4 CERTIFICATION To the best of my knowledge and belief, all information included in this application is true and accurate, including the commitment of all physical and financial resources. This application has been duly authorized by the participating local government(s). I understand the attached RESOLUTION(S) binds the participating local governments to assume responsibility for adequate maintenance of any new or improved city streets or secondary roads. I hereby certify, under penalty of perjury, that any award of RISE funds; any subsequent letting of contracts for design, construction, reconstruction, improvement or maintenance; or the furnishing of materials therefore; shall not involve direct or indirect interest, prohibited by Iowa Code Section 15A.2, 314.2, 362.5 or 331.342, of any state, county, or city official, elective or appointive. Any award of RISE funding or any letting of a contract in violation of the foregoing provisions shall invalidate the award of RISE funding and authorize a complete recovery of any funds previously disbursed. I understand that, although this information is sufficient to secure a commitment of funds, a frrm contract between the applicant and the Department is required prior to the authorization of funds. Representing the City of Dubuque Signed: ~. C G . ,( Q . }lA./1M'l.Q . . Signature in Ink Joyce E~ Connors, Mayor Pro-Tern Attested:~~~~ Of ~ :J, ~f:;- Date Signed October 3, 2005 Typed Date CP~ ~ ~~- Dale Signed Typed Name and Title October 3, 2005 Typed Date Jeanne F. Schneider, Ciily Clerk 5 Form 260003 8-94wd RISE COMPETITIVE RATING APPLICATION Roadway Project Description and Cost Estimate (RISE-Eligible Items) ROAD PROJECT DESCRIPTION: LEAD APPLICANT NAME: City of Dubuque, Iowa Date: August 29, 2005 Location: Dubuque, County Iowa between US20 and US151161 Length (ft.): 31700 (6.0 Mi) Pavement Width: 26 ft ROW Width: Varies Pavement Type: PCC Depth: to be determined TRAFFIC INFORMATION: Present AADT (2005 ): 0 Design Year AADT (2025): 12600 COST ESTIMATE: Item Description Grading Class 10 Grading Class 12 Granular Modified Subbase Granular Shoulders Paving Pavement Removal Signage Traffic Control Culverts Subdrains: shoulder drains Subdrains:Outlets Signals Retaining Walls Granular Backfill for walls Bridges: prestressed beam Lighting Enhancements All other bid items(16% - brdgs Mobilization Mitigation Right of Way SUBTOTAL Engineering, Legal, Administration Contingency GRAND TOTAL % Trucks: 0 % Trucks: 15 Units & Unit Cost 2388415CY@$3.48 643658CY@$6,90 141376SY@$6.90 71450SY@$6.30 9121OSY@$35 24924SY@$5.25 Lump Sum Lump Sum 25% of Earthwork 57088LF@$2.30 130@$185ea 2@$150,000 33848SF@$32 33848SF@$9 61290SF@83 Lump Sum Lump Sum Lump Sum Lump Sum Lump Sum Windsheild Apprisals Total Cost $ 8,312,000 $ 4,441,240 $ 975,500 $ 450,000 $ 3,192,355 $ 130,851 $ 40,000 $ 69,000 $ 3,188,310 $ 130,870 $ 24,050 $ 300,000 $ 1,083,136 $ 304,632 $ 5,087,070 $ 40,000 $ 1,000,000 $ 3,789,111 $ 950,000 $ 2,150,000 $23,100,000 $58,758,126 $7,094,757 $3,327,117 $69,180,000 Note: If road project is in more than one jurisdiction, please prepare separate cost estimate forms for each portion and submit with applications. Please refer to next page 6 Attachment A NARRATIVE describinq the proposed total economic development and how the RISE proiect will support the development. The City of Dubuque has developed two industrial parks on the west side of the City: Dubuque Industrial Center (DIC) and Dubuque Industrial Center West (DICW). These industrial parks contain 292 acres of developed property. An additional 150 acres connecting DIC and DICW are under development. The City is investing over $7,000,000 in the new industrial park expansion, which will be completed in 2005-06. Based upon the history of economic development in these industrial areas, the City anticipates the available industrial property served by the IA32 (Southwest Arterial) project will attract companies similar to existing companies such as John Deere, the State of Iowa's largest employer, McGraw-Hili, Nordstrom Distribution, A Y. McDonald, Swiss Valley Farms, Flexsteel, Theisen Supply Company, Giese Manufacturing, The Adams Company, and Kirchoff Distribution Company. These types of industries have high truck in and outbound traffic. Based on historical numbers the percent of truck traffic from this industrial uses is well over 30% of the daily traffic. Unfortunately, access to the south, with connection to US61/151 and Interstate 80 is only available to industries in the parks via US 20 east which is a level of service D and F facility, especially during peak hours. This RISE project (Iowa State Highway 32) is an important regional route, connecting US 20 with US 61/151. The IA32 project (Southwest Arterial) is necessary infrastructure for existing companies, and is critical for the attraction of new businesses. The project will provide much lower transportation costs for companies moving products, commodities, or goods south to Interstate 80 because these companies will no longer need to move through the city on US 20 east and US61/151 south. Economic development and quality jobs are extremely important to the Dubuque area. The projected jobs created in the new 150 acre industrial park expansion currently being completed have been estimated based upon the employment per acre statistics found in other local developments. Based on these existing employment patterns, 1350 new jobs are anticipated to be created by businesses locating in this area. The City is also in the planning stages of developing industrially zoned property along Sieppel road near US 20. This 200 acre industrial park development is proposed to be included in the City of Dubuque's next 5 year capital improvement plan, and all grading work should be completed at this area at the same time the IA 32 interim project is completed in 2010 or 2001. Based upon the same employment projects used in the preceding paragraph, 1850 new jobs are anticipated to be created by new businesses in this area. Therefore, this project is critical in the creation of an estimated 3200 new jobs in Dubuque. The major existing employers served by this route have requested RISE assistance for this project: . John Deere Dubuque Works facilities manager Ron Wiegman ". .... we still face considerable difficulties in receiving raw goods and distributing our products in a time sensitive manner to the south via US61/151. The development of the Southwest Arterial is even more important to our company as it will allow for our products and people to move back and forth between our Moline headquarters and the Dubuque facility on the recently completed four lane US 61 without considerable delays or congestion. " . McGraw-Hili Sr. Director of Operations Christine Schiesl: "The completion of IA32 to the southern part of Dubuque will allow McGraw-Hili Companies to receive shipments of new product in a timelier manner and also provide exceptional turnaround service on outbound orders shipping to customers all over the world.... ... . .the IA32 Southwest Arterial will improve the drive times of employees, customers, and visitors who fly into the Dubuque Regional airport and then must find their way to our new facility. " . Theisen Supply Inc. President Jim Theisen: "The Southwest Arterial will be more efficient for us to serve our stores in Maquoketa, DeWitt, Tipton, Anamosa, Monticello, Cedar Rapids and Marshalltown, which means 20 semi loads per week that do not have to travel through town on Highway 20." In summary, this IA 32 Southwest Arterial project is an economic development project. The highway will support new job creation in the City's industrial parks and planned improvements to the parks. The project is in conformance with the 2004 study commissioned by IDOT: Transportation Strategies for Iowa to Advance the Quality of Life by David J. Forkenbrock of the University of Iowa's Public Policy Center. This document devotes an entire Chapter describing the best policy for transportation investments related to economic development and supports our efforts to build this highway and assist our existing and expanding companies: "How can transportation investment influence business decisions? Transportation is best thought of as a necessary tool for transporting goods and people from one place to another. Investments in highways and other facilities generate benefits only to the extent that they lower transportation costs. In the final analysis, all the benefits of a transportation facility, and therefore the justification for building it, flow from its ability to expediate transportation. There really is no separate economic development justification for transportation investments; they have to lower transportation costs. " F:\USERS\WBaum\SW Arterial- DMATS\Attachment A 2005v2.doc Attachment C A NARRATIVE assessinq existinq conditions. outlininq the proposed concept of the roadway proiect. and providinq adequate transportation iustification. 1. Existing Conditions: A roadway or highway currently does not exist. Most of this proposed roadway will be constructed through 6.1 miles property used as primarily agriculture. In December of 2004, the Federal Highway Administration approved a "Finding of No Significant Impact" and Final Section 4(f) Statement for the preferred alignment for the project. The Environmental Review process has therefore been completed. In 2004, the City also moved forward with an agreement with Iowa DOT to manage the preliminary design phase of the project. The City executed a preliminary design contract with Earthtech in early 2005. Work on preliminary design continues in 2005 and will be completed in 2006. 2. Description of Proposed project: The developing of the Southwest Arterial along the southwest side of Dubuque would provide a direct connection between U.S. 61/151 and U.S. 20. The project will be built in phases. This application proposes an interim two-lane highway would be constructed to accommodate traffic until funding becomes available for the four-lane divided freeway. The initial stage would include right of way (ROW) acquisition for the four-lane freeway but construction of only the interim two-lane highway. The interim facility would be constructed to final grade and alignment to the extent possible. Access to the interim facility would be via at grade intersections only at the three locations where future interchanges are planned: US 20, US61/151, and North Cascade Road. 3. Transportation Justification: The Dubuque Industrial Center and Dubuque Industrial Center West are the two major industrial parks in the City, home to such companies as McGraw Hill, Nordstrom Distribution, A.Y. McDonald, Giese Manufacturing, Theisen Distribution Center, Adams Company, and Kirchoff Distribution Center. The Dubuque Industrial Center is served by existing State Highway 32, which runs from U.S. 20 north and east to U.S. Highway 52. This Highway is connected to Iowa 380, which serves the John Deere facility north of Dubuque. The major problem the existing companies and the proposed expanding companies are having is the terrible access to the south for delivery of products to the Quad Cities and connection with Interstate 80. The only option available currently is the use of existing U.S. 20. U.S.20 carries 24,000 vehicles per day in stop and go traffic. Projections are that by 2015 the count will be 35,700 and by the year 2025: 47,400 vehicles per day. The existing U.S. 20 highway system is currently a level of service 0 and even F during peak hours. After construction of Iowa 32, much traffic will smoothly be diverted off U.S. 20. Estimates are that as many as 12,600 vehicles per day are projected to use Iowa 32 rather than congested U.S.20. 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