ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE Submission of a "TIGER 2015" Application for DISCRETIONARY GRANT, in an Amount up to $22,000,000.00, from the U.S. Department of Transportation for the EXTENSION OF PIONEER PARKWAY. [District 5]
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BACKGROUND: On April 3, 2015, the US Department of Transportation released a "Notice of Funding Availability" for its latest round of competitive surface transportation discretionary grants called Transportation Investment Generating Economic Recovery (TIGER) for 2015. The TIGER program has a minimum request threshold of $10 million and is only available for projects that can begin construction quickly, upon receipt of the grant. In reviewing potential City projects that meet these and other eligibility requirements, Staff believes the extension of Pioneer Parkway would be an appropriate submission. The City has applied for this same project during the TIGER 2012, 2013 and 2014 funding rounds, but was unsuccessful in those requests.
The Pioneer Parkway Extension Project has been discussed and planned over the past decade. The complete plan would re-align and reconstruct Pioneer Parkway between Harker and Allen; construct approximately 3.75 miles of new four-lane arterial road between Allen and Trigger Roads; build a bridge over existing rail lines; and construct a new interchange at IL Route 6. The City received environmental clearance on this project in June, 2011 and has received IDOT approval of Phase 1 engineering plans.
The total budget for the entire project exceeds $72 million. Given both the financial and programmatic constraints of the TIGER 2015 grant program, Staff has segmented the project into four sections. The attached map shows the following segments (color in parentheses below corresponds to map color):
1. Harker to Radnor (green)
2. Radnor to Wood Sage (red)
3. Wood Sage to Orange Prairie (blue)
4. Orange Prairie to Trigger (orange)
The City's TIGER 2015 application will request funding for the first (Harker to Radnor) and third (Wood Sage to Orange Prairie) segments. The second segment (Wood Sage to Radnor), which includes a bridge and interchange onto IL Route 6, is too costly to be included in this funding stream and cannot be designed in time to meet the grant's obligations. The final segment (Orange Prairie to Trigger) has a relatively small budget, and could be designed within the timeline, but is more appropriate as a future project.
TIGER 2015 is able to pay up to 80% of the total project cost with the remaining 20% coming from non-federal sources (most likely a local match). The budget for this two-segment project is approximately $26 million. The City has already committed previous federal funds and some local funds for right-of-way acquisition and design services for the Harker-to-Radnor segment. These funds reduce the overall need for additional funding, but cannot be counted towards the match. Staff is working to finalize the budget and grant request. If the full $26 million were needed, the federal request would be $20.8 million (80%) and the local match would be $5.2 million (20%). The City's local match could be covered with unrestricted capital funds, motor fuel tax funds, or borrowed funds. Grant expenditures will happen over a three-year period. Design and acquisition activities would commence upon award in 2015. Construction would be slated beginning in 2016. The project could be scaled to accommodate a smaller award than the amount requested.
The extension of Pioneer Parkway, even if just in these two segments, should lead to an increase in economic growth. The creation of an east-west arterial road that will connect north-south streets such as Allen, Radnor, IL Route 91 and Orange Prairie will unlock undeveloped land for residential, commercial and industrial uses. This project is an integral part of the City's growth strategy and Comprehensive Plan.
FINANCIAL IMPACT: Upon award of successful grant application, the City will need to identify a funding source for the local match, which could approach $5.2 million.
NEIGHBORHOOD CONCERNS: The Pioneer Parkway Extension project has been discussed by property owners, neighbors and other stakeholders for the past decade. There is general support for this project.
IMPACT IF APPROVED: The City will submit an application to the US Department of Transportation (deadline is June 5, 2015).
IMPACT IF DENIED: The City will not submit an application and funding for this project will need to be sought elsewhere.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
2. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Invest in our infrastructure and transportation.
3. Support sustainability.
DEPARTMENT: Public Works