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01-9071r 3 RESOLUTION NO. 9071 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICA TIONS WHEREAS, the City of Richfield has received a petition from the Best Buy Company for an improvement project known as the Replacement of Penn Avenue Bridge over 1-494; and WHEREAS, the City Engineer has reported to the Council that the Replacement of Penn Avenue Bridge over 1-494, the improvement project, is feasible. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota (City) as follows: Section 1. Council Resolution No. 9066, adopted on July 23, 2001 set a public hearing for this date for consideration of an Improvement Project consisting of the replacement of the Penn Avenue Bridge over Interstate 494 in the City. Section 2. Ten days mailed notice and two weeks published notice of the hearing was given, the hearing was held on this date, and all persons wishing to be heard on the Improvement Project were heard. Section 3. The City Engineer has reported and the Council finds that the Improvement Project is necessary, cost effective and feasible. Section 4. The Improvement Project as described in the feasibility report and as proposed by the Council is ordered. Section 5. The City Engineer is authorized and directed to prepare plans and specifications for the Improvement Project. Section 6. The Council declares its official intent to reimburse itself for the costs of the improvement Project from proceeds of the tax-exempt bonds. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of August, 2001. Martin J. Ki ATTEST: ~\Y1d:G1 Feasibility Report on Improvement Project REPLACEMENT OF THE PENN AVENUE BRIDGE OVER 1-494 Description of proposed improvement project: The project consists of: replacing the Penn Avenue Bridge over 1-494 with a new, single point diamond bridge; retaining walls, a stormwater lift station; four new ramps connecting Penn Avenue to 1-494; and, new traffic signals on Penn Avenue at Southtown Drive in Bloomington, at the middle of the new bridge and at the entrance to the Best Buy Office Campus. In addition, there will be a temporary exit ramp built for eastbound traffic on 1- 494 at Xerxes Avenue including a temporary traffic signal on Xerxes Avenue at Southtown Drive in Bloomington. As part of the project, private utilities will need to be relocated in order to build the new bridge. Plans and specifications for the Replacement of the Penn Avenue Bridge over 1-494 Project have already been prepared for the City. Need for the proposed improvement: The proposed improvement was analyzed as part of the Best Buy Campus Final Environmental Impact Statement. The analysis showed that the proposed Penn Avenue Bridge is needed to alleviate existing traffic congestion that occurs during weekday rush hour periods and on weekends. The cost and feasibility of the proposed improvement: The construction cost of the proposed improvement is $21.5 million based on an engineer's estimate. Funding for the project will include: FUNDING SOURCE Federal Highway High Priority Project funds Tax Increment Financing funds Minnesota Transportation Revolving Loan funds Minnesota Trunk Highway funds Best Buy Company funds Total AMOUNT $ 7.40 million $ 6.00 million $ 6.70 million $ 0.15 million $ 1.25 million $21.50 million The total cost of the project to the City is $7,400,000. Of this total, $6.7 million will be repaid to the City by the Minnesota Department of Transportation (MnDOT) in the years 2005 and 2006. Temporary financing of that cost will be in the form of a Transportation Revolving Loan Fund (TRLF) loan from the Minnesota Public Facilities Authority. Interest on that loan is estimated to be $700,000 which will be specially assessed against property owned by Best Buy Company but paid by the HRA pursuant to an agreement with the Company. The project is necessary, cost effective and feasible and should be made as proposed and not in connection with some other improvement. Assessment amount and methodology The amount to be specially assesSed is $700,000 <which is the interest on the TRLF loan. It is proposed that the special assessments be deferred as permitted by law until August 20, 2006, at which time the TRLF loan is expected to be repaid from the MnDOT Reimbursement. The special assessments will be levied later this year.