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Home My WebLink About04-30-07 Item 7E, County Road H Interchange Improvement ~ ~HILLS Request for Council Action Prepared By: Dept: Council Mtg. Date: Final Action Needed By: MW --Atrministration- April 30, 2007 April 30, 2007 Agenda Item: Gollrtty ~~<lc:l__~-'_rt!~~~hCl"~ge Improvement Project Budgeted Amount: N/A Actual Amount: N/A Funding Source: 7.E. I. Approve First Amendment to the Preliminary Development Agreement with RRLD, LLC; 2. Approve Reso]ution No. 07-5] Relating to Financing of Project; Establishing Intent with Respect to Reimbursement - -------- ------ Staff recommends approval of First Amendment to the Preliminary Deve]opment Agreement with RRLD, LLC and Reso]ution No. 07-51 Re]ating to Financing of Project; Estab]ishing Intent with Respect to Reimbursement =$'upp6rting DocoolejJtS,C {aifai'!i:edf C. X Memo/Letter: Memorandum from City Administrator dated April 30, 2007 x Resolution No.: 07-51 Ordinance No.: Engineering Recommendation: Attorney Recommendation: x Other: First Amendment to Preliminary Development Agreement with RRlD, LlD \\metro-inet\ardenhiJIs\Admin\City Administrator\Misc\200712-12-07 Cover Sheet RE 800 MHz payment.doc ~ ~HILLS MEMORANDUM DATE: Apri] 30, 2007 AGENDA ITEM 7.E. TO: Mayor and City Council FROM: Michelle Wolfe, City Administrator~ SUBJECT: County Road H Project: Approval of First amendment to Preliminary Development Agreement Approval of Resolution No. 07-5], Re]ating to Financing of Project; Establishing Intent with Respect to Reimbursement BACKGROUND The City of Arden Hills is currently conducting a Master Planning process for TCAAP redevelopment. As part of that project, several transportation improvements will be needed. In terms of phasing and priority, it has been determined that improvements to the County Road H Interchange will be the first improvement needed for the project. The City has been working with the developer (RRLD) to identify funding options for this and other anticipated projects. DISCUSSION The strategy for County Road H funding is to attempt to secure federal funding. In order to actually receive funding in time to meet the anticipated construction schedule (2008 construction), it is necessary to begin pre-design engineering. RRLD is willing to fund the pre- design engineering work, however, is requesting that the City take steps to ensure that these expenditures have the ability to be reimbursed if other funding is secured at a later time. The anticipated budget for this work is $425,000. In order to meet the 2008 construction timeline, pre-design work would need to begin May], 2007. Further delays will likely make any construction in 2008 difficult to achieve. The benefit of starting the bridge work in 2008 is that it a1]ows the possibility of substantial project completion and function at the end of2009. There are two actions requested of the CounciL The first is to approve a First Amendment to the Preliminary Development Agreement (PDA) with RRLD (attached). As Council is aware, the approved PDA includes language regarding developer reimbursable costs. (Section 5(t) 2). This expenditure for County Road H pre-design would become an additional item on Exhibit E of the PDA. This means that if the PDA is terminated before its expiration, or the term expires with or without an MDA, and the City within two years after the effective date of termination or expiration enters into a definitive development agreement with another developer, then the City will reimburse the developer for this cost under the terms described in Section 5 (f) (2) and Exhibit E. The First Amendment to the PDA also states that the City will reimburse the developer for pre-design costs if the City receives grant funds from the federal government, State of Minnesota, Ramsey County, or Metropolitan Council during the term of the PDA. The second requested action by Council is to approve Resolution No. 07-51 (attached.) This resolution is proposed in order to establish the pre-design funds as eligible for reimbursement should other funds be secured for the project. This resolution refers back to the First Amendment of the PDA. ACTION REQUESTED 1. Motion to Approve First Amendment to the Preliminary Development Agreement between the City of Arden Hills and RRLD, LLC. 2. Motion to Approve Resolution No. 07-51 Relating to Financing of Project; Establishing Intent with Respect to Reimbursement Attachments MW \\metro-inet\ardenhills\Admin\City Adminislrator\Memo\2007\4-30-07 Memo RE c.R. H.doe FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT TillS AGREEMENT is made and entered into as of this day of ,2007 by and between the CITY OF ARDEN illLLS, a Minnesota municipal corporation (the "City"), and RRLD, LLC, a Delaware limited liability company (the "Developer"). RECITALS WHEREAS, the City and Developer entered into that certain Preliminary Development Agreement dated March 30, 2007 (the "PDA"); and WHEREAS, the parties have determined a need to amend the PDA as further described herein; NOW, THEREFORE, in consideration of the covenants and obligations of the parties hereto, the City and the Developer hereby agree as follows: 1. Section 5 of the PDAis amended to add anew paragraph (g) as follows: (g) The City and Developer have determined that the Development may require certain improvements to the intersection of County Road H and Interstate 35W (referred to as the "County Road H Project"). The City proposes to apply for grants from the federal government, the State of Minnesota, Ramsey County and the Metropolitan Council to pay all or part of the costs of the County Road H Project. However, in order to proceed with that project on a timely basis, the Developer agrees to undertake and pay all costs of pre-design (and similar preliminary work that is usual and customary for road and interchange projects) for the County Road H Project. The City will promptly reimburse Developer for such preliminary costs if and to the extent the City receives grant funds from any sources named above. Any Developer expenditures under this paragraph are in addition to, and not part of, the City Reimbursable Costs described in Exhibit D. However, if and to the extent Developer is not reimbursed for any County Road H Project pre-design costs during the term of this Agreement, such costs incurred by Developer will be Developer Reimbursable Costs, subject to all the terms and conditions of Section 5(f)(2) and Exhibit E of this Agreement. The City has no obligation to reimburse Developer for any County Road H Project costs except to the extent provided in this paragraph and Section 5(f)(2). 2. Exhibit E of the PDA is hereby modified to add as Item 8: Pre-design for County Road H Project. 3. The PDA remains in full force and effect and is not modified except as expressly provided herein. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF ARDEN IDLLS, MINNESOTA By: Its Mayor By: Its City Administrator 2 RRLD, LLC, a Delaware limited liability company By Ryan Companies US, Inc., a Minnesota Corporation Its Manager By: Its Vice President 3 ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-51 A RESOLUTION RELATING TO FINANCING OF PROJECT; ESTABLISHING INTENT WITH RESPECT TO REIMBURSEMENT BE IT RESOLVED, by the City Council of the City of Arden Hills (the "City"), as follows: WHEREAS, as part of the potential redevelopment of the Twin Cities Army Ammunition Plant ("TCAAP") site in the City, the City anticipates the possible need for certain improvements to the interchange of County Road H and Interstate 35W (the "County Road H Project"); and WHEREAS, the City intends to seek funds from the federal government, the State of Minnesota, Ramsey County and the Metropolitan Council to provide funding for the County Road H Project; and WHEREAS, the City has also entered into a Preliminary Development Agreement dated March 30, 2007 (the "Preliminary Agreement) with RRLD, LLC (the "Developer"); and WHEREAS, the Developer is willing to pay the cost of pre-design work for the County Road H Project under terms of a First Amendment to the Preliminary Development Agreement (the "First Amendment") to be entered into upon approval of this Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills as follows: 1. The City proposes to undertake the County Road H Project, and directs the Developer to pay costs of pre-design and similar preliminary work that is usual and customary for road and interchange proj ects. 2. The City will reimburse Developer for such preliminary costs from proceeds of grants received for such work, to the extent provided in, and subject to all the terms and conditions of, the Preliminary Agreement as amended by the First Amendment. 3. City staff, consultants and the Mayor and City Administrator are authorized and directed to take all actions and execute any documents necessary to carry out the intent ofthis resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 30TH DAY OF APRIL, 2007. Stanley D. Harpstead, Mayor ATTEST: Michelle A.Wolfe, City Administrator