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RESOLUTION NO. 12779
A RESOLUTION APPROVING A REVISION TO A
FUNDING PLAN FOR THE PROPOSED DILLON DRIVE /
INTERSTATE-25 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 $17.5 million; and
WHEREAS, the City of Pueblo, through its consultant (SEH), 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 required that a Funding Plan be
approved by the City; and
WHEREAS, the Pueblo City Council approved by Resolution No. 12017 dated
November 8, 2010 a Funding Plan for the purpose of establishing a viable method to
finance the overall project; NOW, THEREFORE,
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 and
revised herein; however, the City acknowledges that the Funding Plan, specifically the
repayment provision from the PURA, 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 $2.4 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 revised
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.
SECTION 5.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Resolution to effectuate the policies and
procedures described herein.
SECTION 6.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: August 26, 2013
BY: Eva Montoya
PASSED AND APPROVED: September 9, 2013
Background Paper for Proposed
RESOLUTION
DATE: August 26, 2013 AGENDA ITEM # Q-1
DEPARTMENT:
PUBLIC WORKS
DIRECTOR – EARL WILKINSON, P.E.
TITLE
A RESOLUTION APPROVING A REVISION TO A FUNDING PLAN FOR THE
PROPOSED DILLON DRIVE / INTERSTATE-25 INTERCHANGE
ISSUE
Should the City Council approve a funding plan revision for the proposed Dillon Drive /
Interstate-25 Interchange?
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
The estimated cost of the total project is $17.5 million. Of that amount, $14.5 million is
estimated for the construction phase for the proposed Dillon Drive Interchange. The
City has received funding from the Federal Highway Administration (FHWA) and the
Colorado Department of Transportation (CDOT), and after the design and the
environmental process are complete will have approximately $10.9 million remaining for
construction. As a condition of approval of the Environmental Assessment, the
Interstate Access Request, and the Interstate System Level Study, FHWA and CDOT
required a funding plan that detailed the mechanism to finance the entire project. City
Council approved a previous Funding Plan (Resolution 12017 dated November 8,
2010). This Resolution revises the previous Funding Plan to adjust for the lack of
development within the North Pueblo Urban Renewal Area (NPURA).
FINANCIAL IMPACT
The latest construction phase estimate revealed a project shortfall of approximately $3.6
million. The current Tax Increment within the NPURA is adequate to finance an
estimated $1.2 million, leaving a funding gap of around $2.4 million. The City intends to
enter into a municipal bond contract in conjunction with PURA to fund the shortfall.
FASTER funds, currently estimated at $225,000 per year will be used to support the
annual bond payment initially until additional development occurs within the NPURA.
These funds will eventually be repaid to the City by Urban Renewal with any additional
Tax Increment Financing.
Funds for the Project will be paid from:
$ 4.36 M (Federal Portion of $5.45 M Earmark)
$ 8.50 M (CDOT RPP / HIRE)
$12.86 M (Total Federal/State Contribution)
$ 1.09 M (City Portion of $5.45 M Earmark)
$13.95 (Total Funding – To Date)
$ 3.04 M (Design / NEPA / Approvals / etc.)
$10.91 (Funds Available for Construction)
$14.50 M (Estimated Project Construction Cost)
($ 3.59 M) (Project Shortfall)
$ 1.20 M (PURA Bonding Capacity)
$ 2.39 M (City’s Contribution using FASTER)