Agenda - Council Work Session - 04/23/2013

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CC Work Session 2. 3. Meeting Date: 04/23/2013 Submitted For: Kurt Ulrich By: Jo Thieling, Administrative Services Title: Memorandum of Understanding (MOU) for the Armstrong Interchange Project Background: The Anoka County Public Works Committee placed an item on their 4/15 agenda to consider recommending approval to enter into a Memorandum of Understanding with the City of Ramsey for financing the construction of a highway interchange at the intersection of CSAH 83 (Armstrong Boulevard) and US 10. The Armstrong Boulevard intersection at TH 10 is a deficient at -grade signalized intersection. For many years, Anoka County has included reconstructing this intersection into a grade separated interchange into its Capital Improvements Program. To assist in the funding of this interchange, the County is currently pursuing state grant applications from the Transportation Economic Development (TED) program and the Corridor Investment Management Strategy (CIMS) program. To give the applications more "clout ", it would be benficial to have a firm commitment of the local funding match. This MOU would demonstrate a commitment to funding a local cost share of this interchange project. Anoka County is asking the City of Ramsey to enter into an MOU for financing the construction of the interchange Attached to this report is the MOU. Notification: Not applicable. Observations /Alternatives: The City of Ramsey has already made financial contributions toward the project of $7,059,700 that included the construction of approach roads and intersection, extension of a frontage road, property acquisition and design. These contributions have been added to the MOU. It is estimated that the cost to construct the Interchange Project is $35,510,000.00, and that the possible sources of funds would be divided between the federal, state, county, and city sources. The MOU states that, If for any reason any of the funds identified in Exhibit A cannot be obtained, then the County and City agree to assume the responsibility to fund the shortfall by the City paying for one half of the shortfall and the County paying for the other half of the shortfall, provided that neither the City nor the County's maximum financial responsibility for funding the construction of the Interchange Project shall exceed $10,000,000.00. Recommendation: Staff recommends approval of the attached MOU. Funding Source: The proposed missing gap of funding would be eligible to be reimbursed by COR TIF District 14 revenue as it is derived. Council Action: