Utility Extension to the Dubuque Regional Airport_Hearing Copyright 2014
City of Dubuque Public Hearings # 1.
ITEM TITLE: Utility Extension to Dubuque Regional Airport
SUMMARY: Proof of publication on notice of public hearing to consider approval of
plans, specifications, form of contract, and estimated cost for the utility
extension to Dubuque Regional Airport and the City Manager
recommending approval.
RESOLUTION Approval of plans, specifications, form of contract, and
estimated cost for the Utility Extension to the Dubuque Regional Airport
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Utility Extension to Dubuque Regional Airport-MVM Memo City Manager Memo
❑ Staff memo Staff Memo
❑ Map Supporting Documentation
❑ Resolution Resolutions
❑ Updated Southwest Arterial Economic Impact Analysis Supporting Documentation
❑ Proof of Publication Supporting Documentation
THE CITY OF Dubuque
U E I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Utility Extension to the Dubuque Regional Airport
CIP 7102409 — Granger Creek Sanitary Sewer Extension
CIP 7402395 —Water Extension —Airport
CIP 3002491 — Fiber Optic Conduit— Misc.
DATE: April 28, 2015
City Engineer Gus Psihoyos recommends City Council approval of the plans,
specifications, form of contract and the estimated cost of$10,107,454.74 for the Utility
Extension to the Dubuque Regional Airport.
Currently there is an estimated deficit of $113,254.74. Although this falls within the
project contingency amount, there are items that may be eliminated, without affecting
service to the airport. The items that can be eliminated are three highway crossings,
two for future water main extensions and one for a future sanitary sewer extension. The
water crossings would make water service available to Tamarac Business Park and
also the property adjacent to and south of the highway 151 /61 interchange. The
sanitary sewer crossing would make sanitary sewer service available to Tamarac
Business Park. The estimated savings to eliminate these crossings is in excess of
$2881690.00. If bidding is not favorable, those projects could be completed at a later
date.
The water main and sanitary sewer will be extended from the technology park, along
highway 151/61. The fiber optic conduit will be extended from the intersection of
highway 151/61 and Maquoketa Drive. This utility extension project will also provide the
City with the foundational infrastructure needed for future utility extensions to serve the
Granger Creek sewer shed consisting of over 5, 700 acres.
In the 1990's, the City of Dubuque purchased over 900 acres of land for industrial parks.
To service those industrial parks, the City extended water and sewer lines to those
properties. This opened up thousands of acres of land for private development.
Subsequently, through voluntary annexation, Dubuque has grown from 15,832 acres in
1993 to 20,248 acres in 2014, a 28% increase in 21 years.
East Central Intergovernmental Association Director of Transportation Chandra Ravada
has completed the Southwest Arterial Economic Impact Analysis (attached). The water
and sewer lines being extended in this project will partially serve the Southwest Arterial
Corridor. The report concludes:
"In the ten years following the completion of the Southwest Arterial in
2020, the project has the potential to generate $80.18 million in property
tax, $1 .67 billion in economic output, $653 million in labor income, and
$1 .02 billion in value added which includes employment compensation,
incomes to sole proprietors, property incomes, and indirect tax payments.
From 2021 to 2030 the Southwest Arterial will also generate $135.26
million in state and local taxes and $129.97 million in federal tax from new
economic development, as well as save $29.8 million in safety savings.
From 2030 onwards, this project will annually generate $15.67 million in
property tax, $303.9 million in economic output, $24.5 million in state and
local taxes, and $23.62 million in federal taxes due to economic
development, in addition to $3.1 million in safety savings."
I concur with the recommendation and respectfully request Mayor and City Council
approval.
l 4(.
Mic ael C. Van MilligenW+f'
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
2
THF CITY OF Dubuque
Du'B krA M-
E �,A ��
111111
Mas teT iece 0'12 the Mississippi 1007.2012,2013
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer _ f
SUBJECT: Utility Extension to the Dubuque Regional Airport
CIP 7102409 - Granger Creek Sanitary Sewer Extension
CIP 7402395 - Water Extension - Airport
CIP 3002491 - Fiber Optic Conduit — Misc
DATE: April 24, 2015
INTRODUCTION
The enclosed resolution is in reference to the public hearing for the Utility Extension to
the Dubuque Regional Airport.
BACKGROUND
This project will extend City fiber optic, sanitary sewer, and water service to the
Dubuque Regional Airport and surrounding businesses.
DISCUSSION
The water main and sanitary sewer will be extended from the technology park, along
highway 151/61. The fiber optic conduit will be extended from the intersection of
highway 151/61 and Maquoketa Drive. This utility extension project will also provide the
City with the foundational infrastructure needed for future utility extensions to serve the
Granger Creek sewer shed consisting of over 5,700 acres.
PROJECT SCHEDULE
The proposed schedule for the Utility Extension projects is as follows:
Initiate Public Bidding Process April 20, 2015
Publish Notice to Bidders, Advertise for Bids April 24, 2015
Publish Public Hearing Notice on Plans & Specs April 24, 2015
Public Hearing on Plans & Specifications May 4, 2015
Receipt of Bid Proposals (Bid Letting) May 11, 2015
Award Construction Contract May 18, 2015
Project Completion Date February 1, 2016
RECOMMENDATION
I recommend that the City Council approve the plans, specifications, form of contract
and estimated cost for the Utility Extension to the Dubuque Regional Airport Project
through the adoption of the enclosed resolution.
BUDGET IMPACT
The estimate of probable cost for the Utility Extension to the Dubuque Regional Airport
Project is summarized as follows:
Construction Cost Estimate $8,514,404.50
Contingency (10%) 851,440.45
Construction Engineering & Inspection 741,609.79
Total Estimate Project Cost $10,107,454.74
The budget fund codes to support the project are:
CIP 7102409 - Granger Creek Sanitary Sewer Extension $4,029,864.00
CIP 7402395 Water Extension —Airport $5,574,336.00
CIP 3002491 Fiber Optics to Airport $ 390,000.00
Total CIP Funding $9,994,200.00
Currently there is an estimated deficit of $113,254.74. Although this falls within the
project contingency amount, there are items that may be eliminated, without effecting
service to the airport. The items that can be eliminated are three highway crossings,
two for future water main extensions and one for a future sanitary sewer extension. The
water crossings would make water service available to Tamarac Business Park and
also the property adjacent to and south of the highway 151/61 interchange. The
sanitary sewer crossing would make sanitary sewer service available to Tamarac
Business Park. The estimated savings to eliminate these crossings is in excess of
$288,690.00. Individual fund balances will have to be evaluated to determine if
deficiencies in each of the funding sources exist.
ACTION TO BE TAKEN
The City Council is requested to approve the plans, specifications, form of contract and
estimated cost for the Utility Extension to the Dubuque Regional Airport Project through
the adoption of the enclosed resolution.
Prepared by: Todd Irwin
cc: Jenny Larson, Budget Director
Bob Green, Water Department Manager
Ken TeKippe, Finance Director
Todd Irwin, Engineering Technician
2
^y 1p /
AKL-AND-FARMS-RD
DATA :
ti y
Jk,
> 011
r - t
J
x � m
O
wA �G F
` AM- A O_
US 7.57.
151 1 /�jF �ILDLIFE�
�Q 5
:OP
COP
a—
•
G
LLI
y >—
n 4;p
&LJDEVW
r�--
MERLIN LN
BAN
Floodplain
\ t:-
Utility Service Area
_----
-RD
SKYLINE Current City Limits
RESOLUTION NO. 152-15
APPROVAL OF PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND
ESTIMATED COST FOR THE UTILITY EXTENSION TO THE DUBUQUE REGIONAL
AIRPORT
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
That the proposed plans, specifications, form of contract and estimated cost for the
Utility Extension to the Dubuque Regional Airport, in the estimated amount
$10,107,454.74, are hereby approved.
Passed, adopted and approved this 4th day of May, 2015.
Attest:
Kevin S(F'irnstahl, CMC,
oy D. Buol, Mayor
Southwest Arterial Economic • .
The Number One Priority for the
Dubuque Region
Created by ECIA
May 2014
°
r ° _
° 1
"±� °
°
.v
T
11 A
c�q
Economic Impact Analysis of the Southwest Arterial
1 .0 Introduction
This report summarizes the results of an economic impact analysis performed for the Southwest
Arterial in the County of Dubuque. This report was created by East Central Intergovernmental
Association (ECIA) staff for the Dubuque Metropolitan Area Transportation Study (DMATS).
The Southwest Arterial will be a 6.1-mile, four-lane, divided freeway with priority-one access control
and will provide an alternative route for traffic through southwestern Dubuque. It will connect the
Dubuque Technology Park on U.S. 61/151 with the new Dubuque Industrial Center West and the
existing Dubuque Industrial Center near U.S. 20.
This project will provide congestion relief on US 20/Dodge Street and the Locust/Dodge Street
intersection. This project will also improve safety on US 20/Dodge Street, Kelley Lane and US 52
through downtown. The project area and its impacts are shown in Map 1.
MUp 1: Project location and Impacts.
To Mrmeapolsi5t Paul,w To R6d"son,M
DunANcoWISCONSIN
3 52 ®D
61
SAGEWL E
Congestion Relief
15
Improved Safety
1 O W A /!� lt$ p �Y 7iD Y r US 52 CENTRALAVE/
{ �y, 32 -- WHITE ST
LJ
52
l I— 11
f' ASBURYDUBUQUE
F _
'f 32 Improved Safety r - -
--I L LOCUST/DODGE { �- (^
t INTERSECTION p' J 35 ILLINOIS
Congestion Relict EAST
_ US 2010ODGE ST 2p DUBUQUE
Ll
G � zo
CENTRALIA
—• S �_J Improved Safety
t— �1_ KELLY LANE
LS p 20-- 9,p��Rrq�
PEOSTA — pPA 61 52
~r
2 151
�e
R To the Quad Cities
• The Southwest Arterial will have three interchanges. The interchanges will be located on US 20,
US 151/61 and between North Cascade Road and English Mill Road. The route also
Economic Impact Analysis of the Southwest Arterial
accommodates a 5.3 mile stand-alone trail connecting to major attractions in the region. Map 2
provides the locations of each interchange and overall design of the Southwest Arterial.
Map 2: Southwest Arterial
US 20 ° US 151/61
Interchange - o ° j \ ° Interchange
B North Cascade
0 Road Interchange P+�
3 0
- 10
--=-3 AMM
The predominant land use for this corridor is residential with mixed use development at the North
Cascade Road Interchange. The Average Annually Daily Traffic (AADT) for this corridor ranges
from 22,000 to 8,000 in 2040 (DMATS Model). The corridor will have a posted speed of 50
miles/hour. This corridor is designed to improve safety and air quality in the region by providing
congestion relief.
The Southwest Arterial is expected to be built in two phases. Phase I will be the grading for four-
lane construction of a two-lane highway with interchanges at US 20 and US 151/61 and at grade at
North Cascade Road. Phase II will be construction of a four-lane highway on the same route.
The Southwest Arterial Project addresses several desperately needed improvements in the region,
including:
• Enhanced Road System Connectivity- Provides direct transportation, connectivity and
continuity for freight traffic throughout the region.
• Economic Development- Provides a connector to serve future land use,promote development,
and support planned growth.
Safety- Improves safety within the region by diverting truck traffic from urban corridors.
For this study, the economic impact analysis for the proposed project was performed from 2021 to
2030 and 2030 onwards.
The following topics are addressed in this report:
Economic Impact Analysis of the Southwest Arterial
• Methodology
• Project Benefits
The economic impact analysis was performed by applying the net present value (NPV) method.
The forecast costs and economic benefits shown in this report are presented in year 2014 dollars.
2.0 Methodology
This analysis considered the benefits and costs through calculation of the project's net present
value (NPV) using 2014 dollars. This approach includes a summation of initial construction costs
along with ongoing operations and maintenance expenses expressed in present value (2014
dollars). These project costs are then compared to motorized and non-motorized user benefits
likely to accrue from the proposed improvements. The resulting difference, itemized annually,
accounts for the net present value of the project.
The ratio of user benefits to construction costs when expressed in net terms of present value
yields the benefit-cost (B/C) ratio. In addition, the net present value of a project should reflect a
positive economic return within an acceptably long analysis horizon or payback period. In both
cases, a higher value is more desirable.
3.0 Project Benefits
Crash Reduction Benefits
The Southwest Arterial Project will likely result in a reduction of crashes, as a result of reduced
traffic and truck traffic on US 20/Dodge St, Kelley Lane and US 52 through downtown Dubuque.
Crashes are often extremely costly in terms of loss of life, productivity due to injury and vehicle or
other property damage. To compute crash benefits associated with the proposed project, the
accident history for existing routes in the project area was examined. The data and crash maps
from the Iowa Department of Transportation were obtained for the latest five-year period
available (2008-2012) for the study area roads. These were used to calculate an average crash
rate for study area roads. Map 3 provides the Average Annual Daily Traffic (AADT) in the Dubuque
Region in 2011. Map 4 provides the percentage of truck traffic before construction of the
Southwest Arterial and Map 5 provides the percentage of truck traffic volumes after construction
of the Southwest Arterial.
Economic Impact Analysis of the Southwest Arterial
Map 3: Average Annual Daily Traffic in Dubuque Region
N
5,164
52
9,352 -
32
9,400
I
52
61
18,445 i
151
32
EIPPEL R 28,443 2 36,585 18,923
1 ,700
11 ,615
19,900
20
- 20,340
18,450
", 1L 5
8,071
61
151
1 U 11 13,500
SOURCE: IOWA DOT
Economic Impact Analysis of the Southwest Arterial
Map 4: Truck Traffic Volumes Before Construction of the Southwest Arterial
N
L 7.3%
5 i
_ 1
3.7%
32
6.9% ,'
52 8.8°
/o
61
3.4% =
151
32 _. t
SEIPPEL RD L 7.0°/O Z 7.2%
13.2% I-T 13.2
7.6%
2
10.5%
8.2%
52
61 8.4%
151
14.1
SOURCE: IOWA DOT
i
19
TI 4mo
dR mm
IOU"Ill
1
R ■ `�^���i��� 11 `�R 1 1
R
r'-
Economic Impact Analysis of the Southwest Arterial
Tables 1, 2 and 3 below provide existing study area crash data. On average, US 20/Dodge Street
had 180 accidents, US 52 had 160 accidents and Kelly Lane had 50 accidents from 2007 - 2011.
Table 1: Accident data for US 20/Dodge Street
Injured # Non-
No Injury Possible Non- Incapacita Severity Fatal
Year (0) Injury (C) Incapacita ting (A) Killed(K) Unkown Accidents
ting (B) (U) Unknown
if Injured
2011 161 32 15 0 0 1 0
2010 139 48 7 1 0 2 0
2009 111 34 6 0 0 2 0
2008 107 35 5 3 0 2 0
2007 134 43 7 1 0 0 0
SubTotals 6!F--
191 40 5 0 7 0
Table 2: Accident data for US 52
Injured # Non-
No Injury Possible Non- Incapacita Severity Fatal
Year (0) Injury (C) Incapacita ting (A) Killed(K) Unkown Accidents
ting (B) (U) Unknown
JL if Injured
2011 102 23 7 1 0 1 0
2010 130 36 8 1 1 0 0
2009 115 36 10 0 2 2 0
2008 134 24 6 1 0 1 0
2007 119 27 10 0 0 0 0
SubTotals 6V 14 41 3 3 4 0
Table 3: Accident data for Kelly Lane
Non-
Injured # Non-
Year Incapacita Killed(K)
No Injury Possible Incapacita Severity Fatal
(0) Injury (C) ting (B) ting (A) Unkown Accidents
(U) Unknown
2011 46 8 3 1 0 0 0
2010 39 10 1 0 0 0 0
2009 26 10 1 0 0 0 0
2008 39 10 3 0 0 2 0
2007 36 11 2 0 0 1 0
Su 1 10 1 3
Economic Impact Analysis of the Southwest Arterial
The accident data provided in the tables above are used to create rates used for this analysis as
shown in Table 4 below.
Table 4: Average Yearly Accidents
2007-2011 Average Yearly Accidents
Possible Injury Non Incapacitating
Route No Injury (0) (C) Incapacitating (A) Killed (K)
(B)
US 20/Dodge Street 130.40 38.40 8.00 1.00 0.00
US 52 120.00 29.20 8.20 0.60 0.60
Kelly Lane 37.20 9.80 2.00 0.20 0.00
Assumptions
• The analysis assumes that there will be a 30% improvement made on existing safety issues
once the project is constructed.
• The crash reduction benefits are increased by 1% for each year.
• The crash reduction values shown in Table 5 are used to calculate safety benefits on each
corridor.
Table 5: Crash Reduction Values
PARAMETER VALUE SOURCE/NOTE
Fatal: $9.2 million
Critical: $5.45 million
2014 TIGER
Severe: $2.44 million
Value of Crash Discretionary
Reductions Serious: $966,000 Grants Cost/Benefit
Moderate: $432,400 analysis
Minor: $27,600
Property: $3,682
Source:2014 TIGER Discretionary Grants Cost/Benefit Analysis
Methodology
• The crash data from the Iowa Department of Transportation is converted into the Abbreviated
Injury Scale (AIS) data using the National Highway Traffic Safety Administration (NHTSA)
conversion matrix.
• The AIS data is multiplied with a NHTSA value assigned to each type of injury.
• The process is used to compare safety savings between built and no built options.
• The safety savings are increased at a 1% annual rate.
Benefits
Based on methodology and assumptions, the value of reduced crashes between 2021 and 2030
would be approximately $29.8 Million.After 2030, the project will result in $3.1 million in safety
Economic Impact Analysis of the Southwest Arterial
savings annually. Table 6 below provides crash savings for US 20/Dodge Street,US 52 and Kelly
Lane from 2021 to 2030.
Table 6: Safety Benefits
Annual Safety Savings at 1% increase
Year US 20/Dodge Street US 52 Kelly Ln
2021 $1,348,539 $1,150,869 $350,754
2022 $1,362,024 $1,162,377 $354,262
2023 $1,375,644 $1,174,001 $357,804
2024 $1,389,401 $1,185,741 $361,382
2025 $1,403,295 $1,197,598 $364,996
2026 $1,417,328 $1,209,574 $368,646
2027 $1,431,501 $1,221,670 $372,333
2028 $1,445,816 $1,233,887 $376,056
2029 $1,460,274 $1,246,226 $379,817
2030 $1,474,877 $1,258,688 $383,615
Total $14,108,697 $12,040,632 $3,669,665
1
Economic Impact Analysis of the Southwest Arterial
Development / Redevelopment Benefits
Staff conducted an economic impact analysis to gage the impact of the potential commercial and
residential development generated by the Southwest Arterial on the regional economy. Map 6
provides the location of the project and the future potential development area
Map 6: Future Potential Development Area
i
E
Dubuque_/±
Industrial C ter
West
Lt
t
d =
i
due
oho y
P
SW Arterial
Dubuque County Roads ''ti �
Q Dubuque City Limits
SW Arterial Study Area
Mies
0 025 05 1
ft Map CMa By ECI 2014
The economic impact analysis measures the following:
• Construction of new residential development and annual revenue generated through property
tax.
• Benefits from new commercial development. The economic impact analysis measures how
direct benefits and costs of the project are converted into indirect effects on the economy, such
as changes in employment,wages, or business sales.
Economic Impact Analysis of the Southwest Arterial
Residential Development
Staff made the following assumptions to assess the impact of residential development based input
provided from the City of Dubuque Future Land Use Map and Southwest Arterial Environmental
Approval for the DMATS 2040 Travel Demand Forecast Model.
• Construction of the SW Arterial will be completed and open to traffic in 2020.
• Construction of new residential development will begin in 2020.
• 2,800 residential units will be developed within 10 years. (Source: DMATS Travel Demand
Forecast Model, SW Arterial Environmental Assessment&City of Dubuque Land use)
• Median house or condo values is assumed to be $130,570 (Source: http://www.city-
data.com/city/Dubuque-Iowa.html)
• Tax levy is assumed to be $34.32/$1,000 (source:
http://www.cityofdubuque.org/index.aspx?NID=433)
• Residential units will be added in equal increments over the 10 years - approximately 260
units per year.
• Figure 1 illustrates the projected increase in total number of housing units.
Figure: 1 Projected Residential Development
3,000 — 2,800
2,520
2,500 2,240
L
— 1,960
c 2,000 1,680
W
,v_ 1 400
v 1,500
1,120
0
1,000 840
�
E 560
Z 500 280
0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Years
To estimate the cumulative impact of the new residential development over 10 years, staff applied
a 2.5 percent growth rate in property value and a $34.32/$1,000 tax levy to calculate the revenues
generated in taxes for local municipalities?. The tax levy is kept constant for the period of
development. The analysis estimates an increase of revenues from $1.25 million in 2021 to
$15.67 million in 2030. Figure 2 shows the projected tax revenue.
Economic Impact Analysis of the Southwest Arterial
Figure 2: Projected Property Tax Revenue
$18
N $15.67M
c $16
$14 $13.76M
c $11.93 M
v $12
$10.19 M
$10 .5 M
c $v gVII
X $6 $5.40M
M
`y $4 $2.57M
CL $1.25 M
a
$0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Years
Table 7 provides the one time spending due to construction of the projected residential housing
units and property tax generated by these units between 2021 and 2030.
Table 7: Spending and Revenue Generated by Residential Units
Number of Number of New Units Construction Cost Property Tax
Year Housing Units each year ($130,570 per unit at 2.5% generated in
grov&rate) Millions
2021 280 280 $36,559,600 $1.25
2022 560 280 $37,473,590 $2.57
2023 840 280 $38,410,430 $3.95
2024 1,120 280 $39,370,690 $5.40
2025 1,400 280 $40,354,958 $6.92
2026 1,680 280 $41,363,832 $8.52
2027 1,960 280 $42,397,927 $10.19
2028 2,240 280 $43,457,876 $11.93
2029 2,520 280 $44,544,323 $13.76
2030 2,800 280 $45,657,931 $15.67
Economic Development
To conduct the economic impact analysis, staff used input-output modeling software and data
production changes to an economic system. I-0 models are completely transparent systems
composed of actual government-collected data for a regional economy, and include the total
number of jobs in each industry, labor incomes and the number of proprietors. These models also
Economic Impact Analysis of the Southwest Arterial
estimate purchases that industries make from one another within the study economy, based on
national surveys of industrial transactions. Through a series of mathematical manipulations, the
modeling process compiles the activity of the industry in question, its relationship to supplying
firms, and other important transactions that occur in an economy when industrial production or
household consumption changes.
There are four key variables that are reported from impact modeling systems along with three
economic effects or values dimensions. Industrial outputis the sales value of all commodities
produced during a calendar year as a result of what we are measuring. Laborincome is composed
of wages and salaries and returns to proprietors. Value added is a measure of regional product. It
includes employment compensation, incomes to sole proprietors, property incomes and indirect
tax payments.Value added is analogous to gross regional product, and is useful for measuring
productivity, income, and wealth produced in a region. The last indicator reported is the jobs
summary. There are more jobs in the economy than employed persons as many people have more
than one job. Jobs are not to be confused as representing full-time employment. However, the job
values declared in an impact model consider those job amounts on an annualized basis.
The three reporting dimensions are the direct values, the indirect values and the induced values.
Direct values are those that relate specifically to the industrial activities that we are studying. The
indirect valuesrepresent the industrial activity that is stimulated in the region when the direct
firms buy all manner of production inputs from regional suppliers. Induced values accumulate
when workers and business owners convert their labor incomes into household spending. When
these three dimensions are summed, they constitute an unduplicated estimate of the total value of
the economic activity to the region under study. For the purposes of this analysis, staff defined the
regional economy as Dubuque County, Iowa; Grant County, Wisconsin; and Jo Daviess County,
Illinois.
The Southwest Arterial will create new economic opportunities, job growth and investment in the
Tri-State Region. Staff used the IMPLAN Input-Output model to analyze the ongoing impact of the
activity generated by the Southwest Arterial project.
Assumptions
To conduct the analysis, staff made the following assumptions:
• Previous studies have estimated that the commercial development generated by the Southwest
Arterial will directly employ 2,606 workers; 982 employees will work in retail, 846 will work
in non-retail, and 778 will work in the service sector.
• Construction of the Southwest Arterial will be completed and open to traffic in 2020.
• Construction of new commercial development will begin in 2020 with the first businesses
opening in 2021.
• Full build out of the new commercial development will take 10 years,with the final businesses
opening in 2030.
• Employers will add jobs in equal increments each year over the 10 years - approximately 260
jobs per year. Figure 3 illustrates the projected increase in total direct study area employment.
Economic Impact Analysis of the Southwest Arterial
Figure 3 Total Direct Employment
3,000
2,606
2,500 2,346
2,084
2,000 1,824
1,564
O 1,500 1,3114
1,042
1,000
522
500
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Year
Analysis Results
Staff ran two model scenarios. Scenario 1 looks at the total cumulative economic impact of the
new commercial development in the ten years immediately following the completion of the
Southwest Arterial. Scenario 2 studies the annual economic impact of the commercial
development following full build out of the new development.
The IMPLAN model calculates multiplier values based on each industry's unique relationship to
regional suppliers and the ability of its workers and its supplying sectors to induce additional
regional sales. A multiplier is the ratio of the total economic activity to the direct economic
activity. The model calculates separate multipliers for total sales, labor income, and jobs. For this
analysis, our input data is projected number of jobs, so we will focus on the jobs multiplier. Based
on the IMPLAN regional economic data, the model calculated an indirect jobs multiplier of 1.134
and an induced jobs multiplier of 1.229. Combining the indirect and induced multipliers yield a
total jobs multiplier of 1.363. In other words, on average, each job created in the region will result
in the creation of 0.363 additional jobs.
Scenario 1: Southwest Arterial Economic Development Impacts 2021 to 2030
To estimate the cumulative impact of the new development over 10 years, staff applied the
IMPLAN model's jobs multipliers to the projected employment increase from 2021 to 2030. This
calculation yields the indirect and direct employment that will be supported by the new
development. The model estimates an increase from 355 total jobs in 2021 to 3,552 total jobs in
in 2030. Figure 4 shows the projected increase in direct, indirect and induced employment.
Economic Impact Analysis of the Southwest Arterial
Figure 4. Total Cumulative Employment
4,000
[CELLRANGE]
3,500
[CELLRANGE]
3,000 [CE
2,500 [CELLRANGE] .
[CELLRANGE]
0 2,000 [CELLRANGE]
1,500 [CELLRANGE]
1,000 [CELLRANGE]
[CELLRANGE]
500 [CEL M GE]
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Year
■Direct Employment ■Indirect Employment ■Induced Employment
In the ten years between 2021 and 2030, workers employed by businesses in the Southwest
Arterial study area will make $456 million in labor income and will result in direct economic
output of$1.1 billion. Those businesses will require $220 million in regionally sourced inputs and
will require workers making $82 million in labor income. When direct and indirect workers
spend their paychecks they will buy $333 million in goods and services,which will support new
jobs making $113 million in labor income. In all, employment in the Southwest Arterial study area
will add $1.67 billion in economic output, $653 million in labor income, and $1.02 billion in value
added over the 10 years following the completion of the Southwest Arterial. The IMPLAN model
estimates that the new development will generate $135 million in state and local tax and $129
million in federal taxes. Table 8 displays the cumulative employment impacts from 2021 to 2030.
Table 8. Cumulative Employment Impacts 2021-2030
Impact Type 9r Labor Income 9r Value Added Out ut
Direct Effect $456,469,102 $696,582,861 $1,117,904,939
Indirect Effect $82,823,933 $124,996,360 $220,432,640
Induced Effect $113,944,930 $199,276,741 $333,692,071
Total Effect $653,237,965 dL $1,020,855,961 $1,672,029,650
In addition to tracking the relationships between industries, the IMPLAN model also tracks
relationships between institutions such as governments. The model uses this information to
estimate the impacts on state, local and federal taxes that result from each scenario. The IMPLAN
model estimates that the new development will generate $135 million in state and local tax and
$129 million in federal taxes between 2021 and 2030. Table 9 provides a detailed breakdown of
the estimated Scenario 1 tax impacts.
Economic Impact Analysis of the Southwest Arterial
Table 9. Scenario 1 Tax Impacts
State and Local Tax
Description Employee Proprietor Tax on Households Corporations
Compensation Income Production
and Imports
Dividends $5,947,301
Social Ins Tax-Employee Contribution $381,395 $0
Social Ins Tax-Employer Contribution $947,335
Tax on Production and Imports: Sales Tax $46,209,264
Tax on Production and Imports: Property Tax $54,018,894
Tax on Production and Imports: Motor Vehicle $1,787,832
Lie
Tax on Production and Imports: Severance Tax $6,000
Tax on Production and Imports: Other Taxes $4,226,890
Tax on Production and Imports: S/L NonTaxes $5,628,659
Corporate Profits Tax $1,942,824
Personal Tax:Income Tax $10,497,840
Personal Tax:NonTaxes(Fines-Fees $2,047,594
Personal Tax:Motor Vehicle License d $937,884
Personal Tax:Property Taxes $315,004
Personal Tax:Other Tax(Fish/Hunt) $371,908
Total State and Local Tax $1,328,730F $0 $111,877,538 $14,170,231 $7,890,125
Total $135,266,624
Federal Tax
Description Employee Proprietor Taxon Households Corporations
Compensation Income Production
and Imports
Social Ins Tax-Employee Contribution $38,880,026 $3,753,186
Social Ins Tax-Employer Contribution $38,218,997
Tax on Production and Imports: Excise Taxes ' $7,556,657
Tax on Production and Imports: Custom Duty $2,444,799
Tax on Production and Imports: Fed NonTaxes $6,487,717
Corporate Profits Tax $9,586,297
Personal Tax:Income Tax $23,049,374
Total Federal Tax $77,099,023 $3,753,186 $16,489,173 $23,049,374 $9,586,297
Total $129,977,053
Economic Impact Analysis of the Southwest Arterial
Scenario 2: Ongoing Southwest Arterial Economic Development Impacts
Following full build out of the all commercial development in the Southwest Arterial Study Area in
2030, the employment generated by the Southwest Arterial will continue to generate annual
economic impacts. Businesses in the Southwest Arterial study area will employ 2,606 workers
making $82.9 million in labor incomes and will result in direct economic output of$203.2 million.
These businesses will require $40 million in regionally sourced inputs that will require 348 jobs
making $15 million in labor incomes. When direct and indirect workers spend their paychecks,
they will buy $303.9 million in goods and services,which will support 597 jobs and $20 million in
labor income. Table 10 displays the results of the ongoing employment impacts.
Table 10. Annual Employment Impacts After Full Build Out
Impact Type Employment Labor Income Value Added Output
Direct Effect 2,606 $82,979,705 $126,626,984 $203,212,925
Indirect Effect 348 $15,055,648 $22,721,614 $40,069,867
Induced Effect 597 $20,713,465 $36,225,497 $60,660,171
Total Effect 3,551 $118,748,818 $185,574,095 $303,942,963
The IM PLAN model estimates that the new development will generate$24 million in state and
local taxes and $23 million in federal taxes annually. Table 5 provides a detailed breakdown of the
estimated scenario 2 tax impacts.
Table 11. Scenario 2 Tax Impacts
State and Local
Description Employee Proprietor Tax on
Compensation Income Production
and Imports
Dividends $1,081,081
Social Ins Tax-Employee Contribution $69,332 $0
Social Ins Tax-Employer Contribution $172,212
Tax on Production and Imports: Sales Tax $8,400,091
Tax on Production and Imports: Property Tax $9,819,754
Tax on Production and Imports: Motor Vehicle $324,999
Lie
Tax on Production and Imports: Severance Tax $1,091
Tax on Production and Imports: Other Taxes $768,380
Tax on Production and Imports: S/L NonTaxes $1,023,198
Corporate Profits Tax $353,160
Personal Tax: Income Tax $1,908,348
Personal Tax:NonTaxes(Fines-Fees $372,222
Personal Tax: Motor Vehicle License $170,493
Personal Tax: Property Taxes $57,263
Personal Tax: Other Tax(Fish/Hunt) $67,607
Total State and Local Tax $241,544 $0 $20,337,513 $2,575,933 $1,434,241
Total $24,559,231
Economic Impact Analysis of the Southwest Arterial
Federal
Description Employee Proprietor Tax on Households Corporations
Compensation Income Production
and Imports
Social Ins Tax-Employee Contribution $7,067,817 $682,256
Social Ins Tax-Employer Contribution $6,947,652
Tax on Production and Imports:Excise Taxes $1,373,677
Tax on Production and Imports: Custom Duty $444,425
Tax on Production and Imports: Fed NonTaxes $1,179,361
Corporate Profits Tax $1,742,565
Personal Tax:Income Tax $4,190,027
I
Total Federal Tax $14,015,469 $682,256 $2,997,463 $4,190,027 $1,742,565
4.0 Conclusion
In the ten years following the completion of the Southwest Arterial in 2020, the project has the
potential to generate$80.18 million in property tax, $1.67 billion in economic output, $653 million
in labor income, and $1.02 billion in value added which includes employment compensation,
incomes to sole proprietors, property incomes, and indirect tax payments.
From 2021 to 2030 the Southwest Arterial will also generate$135.26 million in state and local
taxes and $129.97 million in federal tax from new economic development, as well as save$29.8
million in safety savings.
From 2030 onwards, this project will annually generate$15.67 million in property tax, $303.9
million in economic output, $24.5 million in state and local taxes, and $23.62 million in federal
taxes due to economic development, in addition to $3.1 million in safety savings.
"City Hall First Floor,
50 West 13th Street,
CITY OF DUBUQUE, Dubuque,Iowa.
IOWA 120.2 Time and '
OFFICIAL NOTICE Placed Sealed Pro-
NOTICE OF PUBLIC posals Will be
HEARING ON PLANS, 1 Opened and Con-
SPECIFICATIQNS, FORM sidered
OF CONTRACT, AND Sealed proposals will avanaDie for all
ESTIMATED COST be opened and Bids. material Iowa
in
FOR THE UTILITY tabulated at 2:00p.m. Iowa for incorporation
into the Project.
EXTENSION TO'THE 'on May 11,2015,at City
DUBUQUE REGIONAL Hall-Conference Room 120 8 General
AIRPORT PROJECT"
B,,50 West Street, Nature of Public
NOTICE IS HEREBY ' Dubuque, Iowa, for Improvement Project
GIVEN: The City Counthe- consideration by the Utility ExtenDubuque egipRegio al
cil of the City' of City Council at its nal
Dubuque, Iowa <willmeeting<on May 18, Airport
hold a public hearing 2015.The City of Dubu- CIP # 7102409,
on the proposed plans, que,lowa,:reserves the 7402395,3002This projec4t extends91
specifications, form of right to reject any and
City sanitary sewer,
contract and estimated all Bids. j
cost for'Utility Exten-; 120.3 Time for ;, water main and,fiber
sion'to the Dubuque Commencement.and 1 optic conduit from the
Regional Airport''pro-
Completion of Work Technology Park,along
ject, in accordance i Work on the Project the Uor Highway
with the provisions of must be commenced 151/61 corridor, the
Chapter- 26, Code of I within .ten (10) cal- Dubuque Regional
Airport.
lowa,•at 6:30 p.m., on endar days after the ; The project
includes the
the 4th day of May, I Notice to Proceed has notal
2015, in the 12"
Historic been issued and shall ation of 15,111 Lf 8",
Federal Building Coun be fully completed by 12" and ;18" sanittary
cil Chambers (second February 1,2016. . ;i sewer, main, 18;718 Lf
floor), 350 West 6th 120A Bid Security: of 6",8", 12", and:18"
Street, Dubuque, Iowa. Each'Bidder must water main, 22,930 LF
Said proposed plans, accompany its Bid with of1 /z""Fiber optic
specifications, form of a. Bid security 'as conduits, two water
contract and estimated security that the ';j booster stations and a'
cost are now on file in successful-Bidder will .I 500,000 gal ' water
the office of the City enter into-a contract reservoir:
Clerk. At said hearing ;for the work Bid upon 120.9 Pre-Bid Con
any interested person .and will!furnish:after struction Conference
may appear and file i the award of contract a Each prospective
objections thereto. _i corporate surety Bond, bidder is encouraged
aorporaesble to the to attend the Pre-Bid
The scope of the Construction Confer
Project is as follows: governmental entity,for the faithful perfor- ence to be held at 10:00
AM on April 28,2015,at
Utility Extensions to mance of the contract, j
the Dubuque Regional in an amount equal to -i City Hall, Conference`
AirportRoom A, in Dubuque,
CIP # 7102409, one hundred percent of
_ _
7402395,-3002491 the amount of the j Iowa.Attendance by all
02395,30024extends contract. -:The' Bid prospective bidders is
City sanitary sewer, security mustThis project be in the not mandatory but
water main and fiber amount often percent highly recommended.
optic conduit from the (10x/0)of the amount of Published in the 1
Technology Park,along the contract and must Telegraph' Herald on
be in the form of a April 24,2015
the U.S. Highway cashier's checkr or It 4/24
151/61 corridor,to the certified 'check drawn
.Dubuque Regional Air on a state-chartered.or'
port. The project in- federally chartered
cludes the installation bank, or a certified
of 15,111 Lf of 8", 12" share,draftdrawn on
and 18"sanitary sewer state-chartered or fed-
main, 18;718 Lf of 6", ,erally chartered credit
8 12", and 18" water union, or,the Bidder
main,22;930 LF of 4- 1 may provide a ,Bid q
/z" Fiber optic con- gond with corporate +
duits, two water I surety satisfactory to
booster stations and a I the governmental enti-
500,000 gal water ty.The Bid Bond must
reservoir. contain no conditions
Any visual or hearing- I except as provided in
impaired persons need- this section. ,
ing special assistance 120.5` Contract
or persons with special Documents
accessibility needs Copies of the Contract
should contact the City Documents may be
Clerk's office at (563) I obtained at the
589-4120 or TDD: at Engineering Depart-
(563) 690-6678 at least ment, City Hall
48 hours prior,to the l Second Floor, 50 West
meeting. 13th Street, Dubuque,.
Published by order of Iowa 52001. The Con-
the City"Council given tract Documents will
on-the 20th day of also be available on the
April,2015.
Kevin S.F•irnstahl, City's website at I
www.cityofdubuque.or
It 4/24 City,.Clerk g/bids.aspx. No plan
NOTICE TO BIDDERS deposit is required. p
120.6 Preference for i
SECTION 00,120 r' Iowa Products and
CITY OF DUBUQIPE ' Labor
PUBLIC i M, By virtue of statutory j
IMPROVEMENT authority, preference
PROJECT' I will be
-given
Utility Extensions to i products annd provi P
the Dubuque sions grown and coal -'
Regional Airport produced within the
Dubuque,Iowa State of Iowa, and to
120.1 Time and Iowa domestic labor,to
.Place for Filing, the extent" lawfully
Sealed Proposals required under -Iowa
Sealed Bids for thestatutes. i
work comprising each 120.7 Sales Tax
improvement as stated The Bidder should not
below must be filed include State of Iowa
before 2:00 p.m. :on sales tax in its Bid. A
May 11, 2015, in the sales tax exemption
office of the City Clerk, certificate will be
STATE OF IOWA {SS:
DUBUQUE COUNTY a
CERTIFICATION OF PUBLICATION j
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation,publisher
of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper
on the following dates: April 24, 2015, and for which the charge is $77.43.
l
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this day of , 20 /,r
Wotary Public in and for Dubuque County, Iowa.
MARY K.W'ESTERNEYER
Comrnission Number 154885
he�,v Comm, Exp, FEB, 1,20117
j