Agenda - Council - 06/11/2013 - Laserfiche WebLink

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Armstrong Interchange Funding 3rategy Ramsey, Minnesota June 5, 2013 Goal: Using the promise of committed and likely project funding sources and the option of the Oppenheimer gap financing tool, persuade MnDOTto agree to initiate the Armstrong Interchange as a design/build/finance project this year. Background: Asa result of the concerted and coordinated efforts by the Oty of Ramsey and its partners at Anoka County and within the local business community, the prospect of finally constructing the long awaited Armstrong Interchange has become much more imminent. Sjfficient funding from a variety of potential resources now appears available to make the interchange a reality. These resources indude city and county funds, federal grant funds, M nDOTT® grant funds, M nDOTspedal appropriations, County Transit Improvement Board funds, and state bonding funds. The good news isthat the total amount of dollars available from all thesesourcesissignificantlygreaterthan the estimated cost of the project; afact which allowsthe project to absorb possible reductions in any of the funding categories. The bad news is that these funding resources become available at a variety of times over the next two years. Under a traditional procurement processthat would mean that construction could not begin until all of the money was in hand. Most likely not until sometime in 2015. The proposal I am submitting to you today would use the funding tool I briefed the council on at an earlier meeting to close the "gap" in the timing of the funding so that the project could begin sooner. As I indicated in the briefing, this gap financing would be made available through the sale of tax-exempt bonds and would be secured by a commitment from M nDOTto repay the bonds as the anticipated funding becomes available. Under this "gap" financing plan the Armstrong Interchange could be initiated asa Design/Build/Finance project this year, providing