TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Use of Riverfront-Downtown Urban Renewal Area funds for Division Street Improvements.
Ward(s): Ward 1
Board Member(s): Kaser
Neighborhood(s): CANDO
Result Area(s): Safe Community; Safe, Reliable and Efficient Infrastructure
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ISSUE:
Shall the Agency Board authorize the use of an additional $633,000 in Riverfront-Downtown Urban Renewal Area Funds, for a total allocation of $4,243,000, for construction of Division Street improvements and authorize the Executive Director to execute the attached grant agreement to provide the $4,243,000 to the City of Salem for the construction?
RECOMMENDATION:
recommendation
Authorize the use of an additional $633,000 in Riverfront-Downtown Urban Renewal Area Funds, for a total allocation of $4,243,000, for construction of Division Street improvements and authorize the Executive Director to execute the attached grant agreement to provide the $4,243,000 to the City of Salem for the construction.
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SUMMARY:
Approval of the recommendation will allocate a total of $4,243,000 of Riverfront-Downtown Urban Renewal Area (RDURA) Funds for construction of Division Street improvements, and grant the funds to the City of Salem to complete the construction.
FACTS AND FINDINGS:
A total of $3,610,000 has previously been approved by the Agency for Division Street improvements; the City has committed $690,000 to the project. The project includes design and construction of street and intersection improvements associated with construction of the new Salem Police Station. Improvements include traffic lane modifications, traffic signal improvements, additional on street parking, stormwater, and pedestrian and bicycle improvements on Division Street NE from Commercial Street NE to Liberty Street NE and on Liberty Street NE from Marion Street NE to the Mill Creek bridge. The project will implement concepts that have been developed for the Downtown Streetscape project to improve sidewalks, landscaping, and lighting in the vicinity of the new Police Station.
Since the original estimate was prepared, costs for the project have increased by $633,000 due to construction costs escalating faster than originally estimated and the complexity of constructing the street improvements while maintaining necessary access for construction of the Salem Police Station building.
The adopted RDURA 2019-20 budget has $2,489,230 committed to Streetscape Design and Construction. Staff recommends re-allocating $633,000 from the Streetscape Design and Construction project to fund the $633,000 needed for Division Street improvements. The Streetscape project will have sufficient funds remaining in the current fiscal year to complete design work and some streetscape construction; additional funds will be allocated in future years to continue implementing the Agency’s adopted Downtown Streetscape Plan.
The construction of Division Street improvements will be included with the upcoming Guaranteed Maximum Price amendment to the overall Construction Manager/General Contractor agreement that has already been executed by the City. In order to transfer Agency funds to the City for construction costs, it is necessary for the Agency to authorize the attached grant agreement (Attachment 1).
Renee K Frazier
Financial Services Manager
Attachments:
1. Grant Agreement for Division Street Improvements