HomeMy WebLinkAbout12017RESOLUTION NO. 12017
A RESOLUTION APPROVING A FUNDING PLAN FOR THE
PROPOSED DILLON DRIVE INTERSTATE INTERCHANGE
WHEREAS, the City of Pueblo has received funding from the Federal Highway
Administration and the Colorado Department of Transportation towards the design and
construction of an interchange at the proposed intersection of Dillon Drive and Interstate 25 (the
“Project”) that currently totals $12.86 Million, and;
WHEREAS, the City of Pueblo created by Resolution No. 7533 a North Pueblo Urban
Renewal Area (NPURA) for the purpose of assisting with the financing for the construction of
said Project, and;
WHEREAS, the City of Pueblo’s consultant, Short, Elliot, Hendrickson (SEH), has
estimated that the total Project cost is approximately $20 Million, and;
WHEREAS, the City of Pueblo, through its consultant (SEH), has submitted an
Environmental Assessment, an Interstate Access Request, and an Interstate System Level
Study in order to receive CDOT and FHWA approvals. As a condition of approving said
documents, both FHWA and CDOT require that a Funding Plan be approved by the City;
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Pueblo City Council, as the duly authorized governing body of the City of Pueblo,
hereby formally adopts the Dillon Interchange Funding Plan as presented herein; however, the
City acknowledges that the Funding Plan as presented is predicated upon certain development
projections within the NPURA and the associated Tax Increment Financing (TIF) estimates.
SECTION 2.
The City of Pueblo intends to commit a portion of its Funding Advancements for Surface
Transportation (FASTER) funds to support the annual bond payment for the gap in funding
(approximately $9 Million), provided that those FASTER funds are repaid to the City by the
Urban Renewal Authority of Pueblo plus an agreed upon rate of interest.
SECTION 3.
The City of Pueblo will enter into an agreement with the Urban Renewal Authority of
Pueblo concerning the Project and detailing the terms and conditions of repayment of the
FASTER funds.
SECTION 4.
The President of the City Council is hereby authorized to approve the Funding Plan on
behalf of the City of Pueblo, A Municipal Corporation, and the City Clerk shall affix the seal of
the City thereto and attest the same.
INTRODUCED: November 8, 2010
BY: Steve Nawrocki
COUNCILPERSON
Background Paper for Proposed
RESOLUTION
DATE: NOVEMBER 8, 2010AGENDA ITEM # Q-2
DEPARTMENT:
PUBLIC WORKS
DIRECTOR – EARL WILKINSON, P.E.
TITLE
A RESOLUTION APPROVING A FUNDING PLAN FOR THE PROPOSED DILLON
DRIVE INTERSTATE INTERCHANGE
ISSUE
Should the City Council approve a funding plan for the proposed Dillon Drive Interstate
Interchange?
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
The estimated cost of the proposed Dillon Drive Interchange is $20 Million. The City
has received funding from the Federal Highway Administration (FHWA) and the
Colorado Department of Transportation (CDOT) in the amount of $12.86 Million. As a
condition of approval of the Environmental Assessment, the Interstate Access Request,
and the Interstate System Level Study, FHWA and CDOT require a funding plan that
details the mechanism to finance the entire project.
FINANCIAL IMPACT
The City intends to enter into a municipal bond contract for approximately $9 Million to
fund the shortfall. FASTER funds will be used to support the annual bond payment
initially until additional development occurs within the North Pueblo Urban Renewal
Area. These funds will eventually be repaid to the City by Urban Renewal with Tax
Increment Financing.
Revised 11/02/10
FINAL DRAFT
DILLON 125 INTERCHANGE
FUNDING PLAN
BACKGROUND
Several years ago the City requested a Federal grant in the amount of $25 Million for the design
and construction of a split- diamond interchange located at the proposed intersection of Platteville
Road (recently renamed Dillon Drive) and Interstate 25 The actual combined total amount
(Federal funds plus City's matching funds) of the grant ($5 45 Million) was considerably less than
what was requested, but it was enough to begin the engineering design, the environmental
approvals and the effort necessary for compliance with the Colorado Department of
Transportation's Procedural Directive 1601 I
It is estimated that the design, approval, and right -of -way acquisition process will expend
approximately $2.45 Million and an additional $500,000 will be spent for consultant construction
management services and CDOT project overview charges during the construction phase.
The City was awarded an additional $7.5 Million in funding towards the project from CDOT's
Regional Priorities Program (RPP) Funds and recently an additional $1 0 Million in HIRE funds
were also committed from CDOT such that the total amount projected to be available for
construction of the project is estimated at roughly $11 0 Million (see CURRENT FUNDING
STATUS below)
CURRENT FUNDING STATUS
$5,450,000 Federal Earmark
(- $1,071,000) NEPA/PD1601 /Etc.
(- $1,179,000) Final Design /Contract Documents /Advertisement & Bidding
( -$ 200,000) Right -of -Way acquisition
( -$ 500.000) Construction Management / CDOT Oversight
$2,500,000 Remaining in Earmark
+ $7,500,000 RPP Funds
+ $1.000.000 HIRE Funds
$11,000,000 Current Projected Funding Balance
PROJECT PHASING
If necessary, the project has been divided into two major construction projects (Project No One and
Project No Two), which have been further subdivided into minor phases. See attached graphic
titled Exhibit D — "Dillon Drive Interchange Conceptual Construction Phasing — Revised November
2, 2010"
Project No. One
Phase 1— Earthwork, west bridge abutment, utilities, retaining walls, landscaping, paving, etc to
construct the south half of Dillon Drive from Elizabeth to I -25 and the frontage road from Dillon to
the north property line of Wagner Equipment.
Phase 2A — East bridge abutment, south half of the bridge and tie -in to Dillon on west side
Phase 2B — Earthwork and all work (landscaping, utilities, paving, etc ) associated with the
northbound off -ramp and disconnecting the existing off -ramp
Phase 3A — Earthwork and all work (landscaping, utilities, paving, etc ) associated with the
southbound on -ramp, and disconnecting the existing on -ramp
Phase 3B — Earthwork, grading and landscaping associated with the stormwater water
quality /detention ponds
Project No. Two
Phase 4A — Construct north half of Dillon Drive from Elizabeth to the frontage road
Phase 4B — Construct north half of bridge and construct one -way frontage road to tie to existing
northbound off -ramp at Eden.
At the conclusion of Phase 3B, the interchange will provide for full movement access to and from
Interstate 25 and the project will then serve as the south half of a split diamond interstate
interchange, using the modified Eden Interchange as the north half.
PROJECT COST ESTIMATE
Based upon current construction pricing (2010) the following is the engineer's estimate for the
construction costs to complete each of the Projects.
Project No. One (Phases 1, 2A & 2B, 3A & 3B) $15.0 Million
Project No. Two (Phases 4A & 4B) $ 4.6 Million
Combined Total Project Cost $19.6 Million
SHORT/LONG TERM FUNDING SOURCES
FASTER Bill (SB 09 - 108) REVENUES
In November 2008, Colorado voters approved a transportation funding measure - Funding
Advancements for Surface Transportation and Economic Recovery (FASTER). Revenue
from this vehicle registration fee is apportioned to the City of Pueblo based upon a formula
similar to the HUTF distribution. For FY 2009 the City received $295,480 in FASTER Bill
revenues. Because the fees did not go into effect until July 1, 2009, the FY 2009 distribution
was only for half of a year It is projected
that the City will receive approximately $600,000 in FASTER Bill revenues for 2010 and
similar amounts for subsequent years.
URBAN RENEWAL AUTHORITY OF PUEBLO (URAP)
By City Ordinance No 7533, passed and approved by City Council on November 13, 2006,
the City created an Urban Renewal Area (URA) that allows for the use of Tax Increment
Funds (TIF) to be spent for infrastructure within the URA. TIF collections are for a period of
twenty -five (25) years following creation of the Urban Renewal Area and adoption of the
Plan. Commercial development and the tax increment it generates to date based upon current
revenue within the district are insufficient to finance any significant project shortfalls. For the
purpose of preparing this project funding plan, the City has worked closely with the Urban
Renewal Authority and the largest landowner /developer within the North Pueblo Urban
Renewal Area (NPURA). Attached is a Resolution from URAP showing support for the
project and approval of this Funding Plan.
2
PROJECT TIMELINE — PLAN A
Project Construction/Bond Issue
Environmental Decision Document February 2011
Final Design Completion September 2011
Advertisement For Construction (Entire Project) Nov — Dec 2011
Bond Issue December 2011
Start Construction March 2012
Finish Construction December 2013
Retire Bond Issue December 2031
PROJECT TIMELINE — PLAN B
Project Construction/Bond Issue
Environmental Decision Document February 2011
Final Design Completion September 2011
Advertisement For Construction (Project One) Nov - Dec 2011
Bond Issue (Initial) December 2011
Start Construction (Project One) March 2012
Finish Construction (Project One) March 2013
Advertisement For Construction (Project Two) Jan. — Feb 2013
Bond Issue (Second) March 2013
Start Construction (Project Two) April 2013
Finish Construction (Project Two) March 2014
Retire Initial / Second Bond Issue December 2031
SUMMARY
The plan as presented above provides for a fiscally responsible method to finance the project
budget shortfall — for both Plans (A & B) and within the 2035 time deadline This funding plan is
based upon several assumptions involving project time, future interest rates, future estimated
construction costs, and predictions of development. Regardless, the plan is financially conservative
in the overall approach. The default scenario would be that no future development occur within the
North Pueblo Urban Renewal Area for the next twenty years, which is highly unlikely In that case,
the City must commit such FASTER/General Fund revenues to fully pay the bond issue(s) for
either Plan.
Attached to this Funding Plan is a Resolution approved by the Pueblo City Council, showing
support for the project and approval of this Funding Plan.
Attachments, Exhibit A
Exhibit B
Exhibit C
Exhibit D
Resolution from URAP
Resolution from City Council
C:/My DocumentsBeyer /Word/Misc/Dillon Interchange Funding Plan 110210
4
PLAN A — Projects One and Two (Entire Project)
The preferred plan is to construct the entirety of the project with the current projected funding
balance and a single bond issue. The cost to construct (Project No One and Two) is estimated at
$19 6 Million. Since the estimate of current funding available is $11 0 Million, that leaves a deficit
of roughly $8 6 Million. The City intends to enter into a municipal bond contract to fund the project
shortfall. Since current TIF revenues are inadequate to cover the annual payments for the bond
amount, the City proposes to utilize a portion of their annual FASTER Bill apportionment to pay
for the payment shortfall (annual payment less TIF) until such time that the TIF exceeds the
payment amount. At that time the TIF will take over the bond payments and the surplus TIF funds
will then repay the City's FASTER Bill expenditures.
The development predictions are given in Exhibit C and the bond issue financing assumptions and
amortization are given on the attached Exhibit A. Note that assuming a 5% bond interest rate and a
12% total cost of issuance, the annual payment for a 18 -year bond issue is calculated at $823,981
The amount of FASTER Bill revenues required for the first annual payment is estimated at
$576,282, which is less than the projected annual FASTER revenues. In subsequent years, the
amount of FASTER funds required to support the gap between the Increment and the Annual
Payment rapidly drops as future development occurs and associated TIF revenue is generated.
It is estimated that under Plan A the FASTER funds will be repaid to the City (with an
appropriate rate of return) in approximately eight (8) years from the date of bond issue. The
TIF will be used to pay the remainder of the debt service.
PLAN B — Proiect One / Proiect Two (Consecutive Projects)
If the City is unwilling to commit FASTER funds to support the entire project, then the project will
be constructed and financed in phases as described above ( "Project Phasing ")
The cost to construct Project No One is estimated at $15 0 Million. Since the estimate of current
funding is $11 0 Million, a deficit exists of roughly $4 0 Million. The City intends to enter into a
municipal bond contract to fund the project shortfall Since current TIF revenues are inadequate to
cover the annual payments for the bond amount, the City proposes to utilize a portion of their
annual FASTER Bill apportionment to pay for the payment shortfall (annual payment less TIF)
until such time that the TIF exceeds the payment amount. At that time the TIF will take over the
bond payments and the surplus TIF funds will then repay the City's FASTER Bill expenditures. At
some future point that it appears certain that those FASTER funds will be fully repaid, a second
bond issue for Project Two will be issued, albeit for a shortened bond period that coincides with the
termination date for the URA TIF
The attached Plan B spreadsheet labeled Exhibit B present a possible scenario for development and
the corresponding TIF /FASTER bond issue payments. The development predictions for the bond
issue financing assumptions are stated in the captions on the exhibits. Note that the development
projections for Plan A and Plan B are identical
It is estimated for Project No. One of Plan B that the FASTER funds will be repaid to the City
(with an appropriate rate of return) in approximately three (3) years from the date of bond
issue. FASTER funds will be used to assist with the annual payments of the second bond issue
until such time that additional development occurs and the FASTER funds are repaid to the
City TIF funding will then be used to make the bond payments until the debt service is
satisfied.
3
RESOLUTION NO ot() r `1
A RESOLUTION BY THE URBAN RENEWAL AUTHORITY OF
PUEBLO SUPPORTING THE FINANCING STRUCTURE AND
ASSOCIATED DEVELOPMENT COST PROJECTIONS FOR THE
NORTH PUEBLO DILLON DRIVE EXTENSION PROJECT
WHEREAS, in accordance with the North Pueblo Urban Renewal Project Area Plan
(the Plan), adopted by ordinance on November 13 2006, by the Pueblo City Council, the
Urban Renewal Authority of Pueblo (URAP) entered into a cooperation agreement with the
City of Pueblo to further the goals of the Plan, and
WHEREAS, such resolution is in furtherance of the Plan and its principal urban
renewal project is the construction of the Dillon Drive Extension, which may consist of the
Dillon /Eden split diamond interchange and other appurtenant Federal Highway
Administration facilities approved by the Colorado Department of Transportation
WHEREAS, the following resolution demonstrates the Authority's support of the
financing structure and associated development cost projections to construct the Dillon
Drive Extension
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO THAT
The financing structure and associated development cost projections for the North
Dillon Drive Extension Project are hereby supported
Adopted this 14th day of September, 2010
APPROVED r1 (
U hai�rppe�rso , f
�'Rerewal Authoriity of Pueblo
ATTEST
S7arta ry
.a. A 5, 4 W. il 11 . Vi.
O
t`S •nSB b r W m _ b T c0 O�i em+ n c0 N a N
P ag Obi T Obi Si, Obi Si a T ai Si T m
, t , m m m m m m m m m m m m m m m m m
i.:-Wia ,.
Ad '� Y �€ X :.�. I MM TT O
C a+ 'N M E V ci ti 6. .i r o r O 4 O b m n n n
i0p N m MM OO p
h ..p': ��' r�i m M M O d O O u, N ,p ,b b n n
2 f$,Ii. F4ilisr-jri,q,?- a ,1, 5 5 5 g 5 - 5
z
g g g g e, , g e, e, g g g e, e, g e, y;
w W , r .
.1c*. §
u � rte_...,'
F Z -- g o o a E g E N e a, 4 P. 4. g, o m E. a
u� z u 3 i g g g, a L n 4 «« 4 5 M 5 a 5 5 M
N m 5 gg g
O m F 8§ o m n Op °m 5 O 51 5 a �n 1 d 1 0 1 1 m I'm
J= W 6 ' Z .+ 5 n m m 5 n 00 N m 5 eft M r5i .6i O T
O a 0 } g� „ ry ,. „ .,
K 0 $ x
Z t
22 4$ 4 4 4 4 o 0 0 4 4$ 4. 4 4 4 4 4 4 o$ 4
G
w _
0 8 o b
a_ - l 1 E E 9 � Si i � g � � I d
t t > s �a
z' i
.. g - a ,c c .4 ` ... . ry Pi ev 'v n g ;4 N 4 4 ., E q
g .. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a` a r, i 15
u 33.4 v $ 65 9 ; c c
� 3
a00 t55g5555
sc _
8 ` ='E
b � = E a "
t § a g §
/1 § Ab j!:I ="`gd >oi b,b � ., 9_
B z A g zb g 4 a$ 5
$ o n m .. 1 m m o
N N n N N n n N N n N n °n °n 2 N« n 2 r°. ° 21 '= c m
a,r
b4 ��`' a rn .n n m m o .� N rn a �n ro n 'Al m ol
b' ,.;}. kq'fr I l i o n o ry o 0 0 o ry ry ry o 0 0 0 0 0 0l
Ili N N
W :.,:,:-.,,,,vie, r0 ul O n m n
y
TZ'3 ,A .3 Ci < $ $ o a ° m n 8 & u" :
47 els u; d aG Oi
jv'w . N
O Y m
pp
:T � 4 5 r ri o+ fp, $ ^ 8 8' 8 ,, n w m m m w m
f
� s'�' { X,` . N N �p n t0 b tn0 b i i0 n b rD n �O iD �D r0
t '1 ;•s,`�`Y` 11G o0 m m m W m m a0 m W a0 m W m m
'. re; m e Le Le e e e re .e M m l e e e rc
. t �„>,i c g , Or Or Or T Tr, .2 2 O r T W Of Or m m Or
VV N W of Epp �Op M Epp T
�.� n N O N �O O N O O O O O A O
ff
,, , O n ^ 8 P 01 ill N n b
f" vi N m M .e .D . O
3 n W
3e '.-,a''; r8 v v a a o n d o n ry
,�..a .. .. o 0 o v rn g m
An" ti"',«c Q m n '`O' n
' kr °g N N n e F , m N :o m m
'AV "
V '' r°n a °m ."'.� °'O. .n ° 1 i+
Z pp,
L
w
3 y 4 l 3 - n a
w v o
;:
I tc l Z , 4 . . .y
=
CC w yy
a 5 U n o 0 o e E FA' m c o: m n of �" 75 0 m a a o�
W 0 W -a g m g$ O 0 ry o 's n ry al ,. m m o 1 g
F_ m N S. .'� .', N N N ry ry ry N ry ry N N
_Z w F-
a a 8$ o m '° vmrvi rn m o a rn a $ m
i H p 3 . 2 3
N ° 25 o 00 oo ^ m u • $ �i m m m
m Q ri rri • a g ai 2 N
Z K Z C x.E: .. .. o °� m .X n a , . ry M °m I. m o m
O _ Z m �° .. N N ., ., ., ., _
,.... .gggggggggggggggggggggg E. E
d o °
1 c o
2 p, § 8° 2, 8 2 ci N 8 A
o ? m
.2. 3 � N 8 � va—
$ a
`, § ° o m 4§ a '0, :0, E f g e N N e m °N' m° m
It I i °n m o °m ry - a ., m E `c :=1-.'
m m -- n m m ."1 go o a $ n W . 'Sr m 4 $ N o$ N
¢, ry o rn rc o ti � N N N N N N ry ry N N Y E q y
2F aF dR dR dR dR dR X X X X X X X X X X X X X X X m
o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a -1
o ` + n
`o S ° o ° 2 5 c c
o " a `n u 8 M
`o m I1 !I 1 II
4. k
— xi • 2 g § x o g N c e
n « c
E a a « � o mo o
° ._�..
-
fig g LL� .1. , z , 3
x« § N $ a � g N E v- 1.
. y � ? > ou n a S� D a
3 25 0 o 2 2 0 2 1 o N 2 o 2 o 2 o 2 0 2 ry 2 11 =:,---. —; C m
u
: \
J
\ }
, _
§ _
\
\ _ / ) { it
K f \
F. `
} k §
§ }
1 1 1 11 § \ . . 2 ; ill ;
# k
"I Z 0 00 \7§ \\% \ §§ \$7 §§ $7 \ \ 2 \\ kk
k§§ \ } I 0 (;m ' -' _ CV al [ f7 ^ G %\ R
CC r.: D fl - -�
an § .� - r �� ro
= o ,„2 $ _
_ w \
` - . 2
0
2 -
)
C
\ \ \ \ \ -
! ! § 9 / Z / Z / ƒ E
f f \ k \� ( £\ ƒ\ +\ � \ t( �k 2 _ j
k )2 } k§ )\k § 0 ) \) k \f )3 §
■ - T P ; _ ;■�! e . ■� = I '■ a2 » . k
_ ) = � ; , v .-t #| ms s , |,
/ E \) }! a ) ƒ!) ) fa] ) f7 3) } J) ) kf )! 72 ) ; -
1 P.1 1.4 � P4 le .. .][ . SC .IC .. \)\- -
_ ". a n, C
,� t r:,',,,:
'
cEG ., °0
1 �'
Q
1 k u _ d c
S r= } f $
1- r7 � Q,
v
f. •
■
,
•
.�r O •
R " fro+. 1
1 �� `r Z
■
,
L 3
i rr���' 1 "' 1 y`
1 i 4 '
i '' ' ..' ' - \ 1
,
ft k -i ,
? w ..rc `�1 , .. .\
_
L 1
cl ��
. L..q ' , ,vs'",,,,‘ . .'
,h
f
y :. flit ,