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HRA Regular Session 5. 1. Meeting Date: 01/24/2012 By: Tim Himmer, Engineering/Public Works Title: Consider Deviations From the Current Policy on Distribution of Land Sale Proceeds for Potential Funding of the Sunwood Drive Realignment Background: In the summer of 2011, both the HRA and the City Council approved contracts with separate consultants to investigate the potential realignment of Sunwood Drive near Armstrong Boulevard. Landform was hired by the HRA in June to work on the portion of the project internal to the COR, and update the necessary AUAR components for the project. The scope of services to complete their work did not include any items outside of the development area and within Anoka County right-of-way along Armstrong Boulevard. WSB and Associates was hired by the City Council in July to perform all portions of the project located within Anoka County right-of-way, as they are the consultant that is working on the TH 10/Armstrong interchange and the recently completed Bunker/Armstrong signalization project. This two pronged approach was to maximize efficiencies by building on all previous work completed to date, both internal and external to the COR. The project includes the realignment of Sunwood Drive, between approximately Zeolite Street and Armstrong Boulevard (see attached preliminary design). The intent is to work north to south on Armstrong Boulevard and complete another section of the roadway in its final location; to set the stage for the ultimate interchange over the railroad tracks and TH 10. It will also create additional developable land for retail space near the new intersection, and create a signalized full access to the COR from Armstrong Boulevard. Draft feasibility studies were presented to the Public Works Committee and HRA on December 13,2011, with the only remaining outstanding item being the funding package. On that date the HRA authorized the preparation of appraisals for the potential acquisition of 3 parcels along the west side of Armstrong Boulevard that are necessary for portions of this project, and ultimately the interchange project. This case provides the final draft of the feasibility studies and includes a funding package for the entire project. This case was on the City Council agenda earlier this evening, and has been included on the HRA agenda to discuss the possibility of deviating from the current policy on distribution of land sale proceeds to fund a portion of this project. Observations: Currently the traffic and land use components of the COR AUAR are in need of an update to reflect the current conceptual design approved by the HRA. These two components are also necessary to properly assess and design the proposed Sunwood Drive realignment, as the uses and anticipated traffic have significantly changed since the original AUAR was drafted. These AUAR update tasks were included in the proposal from Landform, and are incorporated in their feasibility study. Recall that there are a few design items contained in these feasibility studies that differ slightly from the preliminary design of the Armstrong/TH 10 interchange project. Those discrepancies were discussed by the City Council in work session on December 13, 2011 and following is the direction received: 1. The location of 147th Avenue NW is currently shown in its existing location on the interchange design, but it is shifted slightly south of its current location in the Sunwood realignment project. This was done to improve the primary access into the COR from Armstrong Boulevard, and be consistent with the HRA approved development plan. Council felt we should continue with the design shown for the Sunwood realignment, as the HRA would be undertaking a process to acquire the necessary land along the west side of Armstrong