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HomeMy WebLinkAboutOrdinance - 1914 - Establishing the dana drive traffic impact fee • ORDINANCE / c/-/"/ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDDING ESTABLISHING THE DANA DRIVE TRAFFIC IMPACT FEE DISTRICT AND ENACTING A NEW CHAPTER 16.43 OF THE REDDING MUNICIPAL CODE. The City Council of the City of Redding does hereby ordain as follows: Section 1. Title 16, BUILDINGS AND CONSTRUCTION, of the Redding Municipal Code is hereby amended by adding a new Chapter 16.43 as follows: Chapter 16.43 DANA DRIVE TRAFFIC IMPACT FEE DISTRICT Section s: 16.43.010 Legislative Findings 16.43.020 Short Title, Authority_ , and Applicability 16.43.030 Intents and Purposes 16.43.040 Rules of Construction 16.43.050 Definitions 16.43.060 Imposition of Road Impact Fee 16.43.070 Payment of Fee 16.43.080 Road Impact Fee District 16.43.090 Road Impact Fee Trust Fund. Established 16.43.100 Use of Funds 16.43.110 Refund of Fees Paid 16.43.120 Exemptions and Credits 16.43.130 Review 16.43.140 Penalty Provision 16.43.150 Severability 16.43.160 Effective Date. 16.43.010 Legislative Findings. The City Council of the City of Redding determines and declares that: A. The City Council of the City of Redding has adopted Redding Municipal Code Chapter 17.56 creating and establishing the authority for imposing a fee for the purpose of defraying the cost of new roads and related facilities B. The State of California, through the enactment of Government Code Sections 66001 through 66009 has authorized the City of Redding to enact impact fees. C. The imposition of impact fees is one of the preferred methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development. This must he done in order to promote and protect the public health, safety, and welfare. D. That this Ordinance recognizes types of land development which will generate traffic necessitating the acquisition of rights-of-way, road construction, and road improvements. E. The fees established by Resolution pursuant to this Ordinance are derived from, are based upon, and do not exceed the costs of providing additional rights-of-way, road construction, and road improvements necessitated by the new land developments for which the fees are levied. F. The fees collected pursuant to this Ordinance shall be used to finance the road improvements and related facilities identified in Exhibit A attached hereto and incorporated herein by reference. G. Detailed transportation-facilities studies of the impacts on the existing highway infrastructure of contemplated future development in the designated benefit area, along with an analysis of the need for new road improvements and related facilities, have been prepared as part of the environmental review documents for GPA-14-88. Those reports are titled Costco Store Traffic Study, March 23, 1989; and Costco Traffic Study, Dana Drive Interchange Relocation. These reports are further supple- mented by the Circulation Element of the Redding General Plan. H. There is a reasonable relationship between the need for the public facilities designated in Exhibit A and the impacts of the types of development for which the corresponding fee is charged. I. There is a reasonable relationship between the fee's use and the type of development for which the fee is charged. J. There is a reasonable relationship between the amount of the fee andthe cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed. K. The cost estimates set forth in Exhibit A are reasonable cost estimates for constructing these facilities; and the fees expected to be generated. by future developments will not exceed the total costs of constructing the transportation facilities identified in Exhibit A. -2- • L. The report titled "Dana Drive Traffic' Benefit District Summary Report" dated February 6, 1990, sets forth a reasonable methodology and analysis for the determination of the impact of new development on the need for and costs for additional rights-of-way, road construction, and road improvements in the Dana Drive Benefit District area. 16.43.020 Short Title, Authority, and Applicability. A. This Ordinance shall be known and may be cited as the "Dana Drive Traffic Impact District Fee Ordinance." B. The City Council of the City of Redding has the authority to adopt this Ordinance pursuant to California Government Code Section 66000 et seq. C. This Ordinance shall apply in the designated benefit area to the extent permitted by the statutes of the State of California. 16.43.030 Intents and Purposes. A. This Ordinance is intended to assist in the implementation of the City of Redding General Plan, and to mitigate traffic impacts identified in EIR-3-79. B. The purpose of this Ordinance is to regulate the use and development of land so as to assure that new development bears a proportionate share of the cost of capital expenditures necessary to provide facilities in the City of Redding in the designated benefit area. 16.43.040 Rules of Construction. A. The provisions of this Ordinance shall be liberally construed so as to effectively carry out its purpose in the interest of the public health, safety, and welfare. B. For the purposes of administration and enforcement of this Ordinance, unless otherwise stated herein, the following rules of construction shall apply to the text hereof: 1. In case of any difference of meaning or implication between the text of this Ordinance and any caption, illustration, summary table, or illustrative table, the text shall control. 2. The word "shall" is always mandatory and not discretionary; the word "may" is permissive. 3. Words used in the present tense shall include the future; and words used in the singular number shall include the plural, and the -3- • 1110 plural the singular, unless the context clearly indicates the contrary. 4. The phrase "used for" includes "arranged for," "designed for," "maintained for," or "occupied for." 5. The word "person" includes an individual, corporation, partnership, incorporated association, or any other similar entity. 6. Unless the context clearly indicates the contrary, where a regulation involves two or more items, conditions, provisions, or events connected by the conjunction "and," "or," or "either. . .or," the conjunction shall be interpreted as follows: a. "And" indicates that all the connected terms, conditions, provisions, or events shall apply. b. "Or" indicates that the connected items, conditions, provisions, or events may apply singly or in any combination. c. "Either. . .or" indicates that the connected items, conditions, provisions, or events shall apply singly, but not in combination. 7. The word "includes" shall not limit a term to the specific example, but is intended to extend its meaning to all other instances or circumstances of like kind or character. 8. "Planning Director" means the City of Redding's Director of Planning and Community Development or other municipal officials he/she may designate to carry out the administration of this Ordinance. 9. A road right-of-way used to define road impact fee district boundaries may be considered within any district it bounds. 16.43.050 Definitions. A. A "Fcepayer" is a person commencing a land development activity which generates traffic and which requires the issuance of a building permit or permit for mobilehome installation. B. A "Capital Improvement" includes transportation planning, preliminary engineering, engineering design studies, land surveys, right-of-way acquisition, engineering, permitting, construction and inspection of all the necessary features for any road construction project, including, but not limited to: 1. Construction of new through lanes. -4- • 2. Construction of new turn lanes. 3. Construction of new bridges. 4. Construction of new drainage facilities in conjunction with new roadway construction. 5. Purchase and installation of traffic signalization (including new and upgraded signalization) . 6. Construction of curbs, medians, and shoulders. 7. Relocating utilities to accommodate new roadway construction. C. "Expansion" of the capacity of a road applies to all road and intersection capacity enhancements, and includes, but is not limited to, extensions, widening, intersection improvements, upgrading signali7ation, and expansion of bridges. D. "Land Development Activity Generating Traffic" means any change in land use, or any construction of buildings or structures, or any change in the use of any structure, that attracts or produces vehicular trips. E. "Site-related Improvements" are capital improvements and right-of-way dedications for direct access improvements to and/or within the development in question. Direct access improvements include, but are not limited to, the following: 1. Access roads leading to the development. 2. Driveways and roads within the development. 3. Acceleration and deceleration lanes, and right- and left-turn lanes leading to those roads and driveways. 4. Traffic-control measures for those roads and driveways. 5. Curb, gutter, sidewalk, and parking lanes adjacent to the development. F. "Independent Fee Calculation Study" means the traffic engineering and/or economic documentation prepared by a feepayer to allow the determination of the impact fee other than by the use of the Resolution establishing fees pursuant to this Ordinance. G. "Level of Service" shall have the same meaning as set forth in the "Dana Drive Traffic Benefit District Summary Report." H. "Mandatory or Required Right-of-way Dedications and/or Roadway Improvements" means such noncompensated dedications and/or roadway improvements required by the City of Redding. -5- I. "Development" shall mean the construction, alteration, addition, occupancy, or use of any building or structure within the benefit area. J. "Dwelling Unit" means a dwelling unit as defined in the Uniform Building Code (UBC) as adopted from time-to-time by the City of Redding. K. "Guestroom" shall mean a room designed for overnight accommodations that does not qualify as a dwelling unit. Examples include hotel rooms, motel rooms, convalescent hospital rooms, and dormitory rooms. For a suite of rooms, rooms for sleeping shall be guest rooms. All space in buildings containing guest rooms which is in a separate area from the guest rooms shall be subject to nonresidential development fees. Examples of such space are hotel and convalescent hospital reception areas, meeting rooms, and dining areas. L. "Multiple Unit" shall mean any dwelling unit which is not a single-family unit. M. "Single-family Unit" shall mean a dwelling unit for which no enclosing walls, including the walls of any attached structures, are within six feet of an enclosing wall of another dwelling unit, or a wall of an attached structure of that unit. A mobilehome is a single-family unit. N. "Office/General" shall mean office uses and any other type of use which typically uses less than 400 square feet per employee. O. "Commercial" shall mean retail uses and any other type of use which typically uses between 400 and 600 square feet per employee. P. "Service Industrial" shall mean warehouse, industrial, and any other type of use which typically uses more than 600 square .feet per employee. Q. "Square Foot" shall mean every square foot of floor area as defined in the Uniform Building Code (UBC) as adopted from time-to-time by the City of Redding. The City shall develop regulations for determining the square footage of any project which cannot be calculated by using the definition of floor area. R. "Floor Area" means the total floor area of all stories of a building or structure, including basements, as well as aboveground stories. 16.43.060 Imposition of Road Impact Fee. A. Any person who, after the effective date of this Ordinance, seeks to develop land within the Dana Drive Traffic Benefit District by applying for a building permit, an extension of a building permit issued prior to that date, a permit for mobilehome installation, an extension of a permit for mobilehome installation issued prior to the effective date, or to make -6- S an improvement to land which will generate additional traffic, is hereby required to pay a road impact fee in the manner and amount set forth in a Resolution adopted by the City Council pursuant to this Ordinance. B. No permits or extension of permits for the activities listed in subsection A shall be granted unless anduntil the road impact fees hereby required have been paid to the City. 16.43.070 Payment of. Fee. A. The feepayer shall pay the road impact fee established to the City of Redding prior to the issuance of a building permit or a permit for mobilehome installation. B. All funds collected shall be properly identified for the Dana Drive Traffic Impact Fee District, and promptly transferred for deposit in the appropriate Impact Fee Trust Fund to be held in separate accounts as determined in Section 16.43.090 of this Ordinance and used solely for the purposes specified in this Ordinance. 16.43.080 Road Impact Fee District. There is hereby established the Dana Drive Traffic. Impact Fee District with boundaries as shown in Exhibit B attached hereto and incorporated herein by reference. 16.43.090 Road Impact Fee Trust Fund Established. A. There is hereby established the Dana Drive Traffic Impact Fee District Trust Fund. B. Funds withdrawn from these accounts must be used in accordance with the provisions of Section 16.43.100 of this Ordinance. 16.43.100 Use of Funds. A. Funds collected from road impact fees shall be used for the purpose of capital improvements to and expansion of transportation facilities associated with the Arterial and Collector road network as designated by the City of Redding within the Dana Drive Traffir Impact Fee District. B. No funds shall be used for periodic, or routine maintenance. C. Funds shall be used exclusively for capital improvements or expansion within the road impact fee district, including district boundary roads, as identified in Exhibit A hereof, or for projects in other areas which are -7- 1I of benefit to the road impact di st+rict from which the funds were collected. D. In the event that bonds or similar debt instruments are issued for advanced provision of capital facilities for which road impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities provided are of the type described in paragraph A of this section and are located within the impact fee district created by Section 16.43.080 of this Ordinance or as provided in paragraph C of this section. E. At least once each fiscal period, the Planning Director shall present to the City Council a proposed capital improvement program for roads, assigning funds, including any accrued interest, from the Impact Fee Trust Funds to specific road improvement projects and related expenses. Monies, including any accrued interest, not assigned in any fiscal period shall be retained in the same Road Impact Fee Trust Fund until the next fiscal period except as provided by the refund provisions of Section 16.43.110. F. Funds may be used to provide refunds as described in Section 16.43.110. G. The City of Redding shall be entitled to retain not more than five percent (5%) of the funds collected as compensation for the expense of collecting the fee and administering this Ordinance. 16.43.110. Refund of Fees Paid. A. If a building permit or permit for mobilehome installation expires without commencement of construction, then the fccpayer shall be entitled to a refund, without interest, of the impact fee paid as a condition for its issuance, except that the City shall retain one percent (1%) of the fee to offset a portion of the costs of collection and refund. The feepayer must submit an application for such a refund to the Planning Director within 30 calendar days of the expiration of the permit. B. Any funds not expendedor encumbered by the end of the calendar quarter immediately following five (5) years from the date the road. impact fee was paid shall, upon application of the then current landowner, be returned to such landowner with interest at a rate equal to the rate of interest earned by the City at the time of application, provided that the landowner submits an application for refund to the Planning Director within 180 calendar days of the expiration of the five-year period. -8- • I . 16.43.120 Exemptions and Credits. A. Any claim of exemption must be made no later than the time of appli- cation pplication for a building permit or permit for mobilehome installation. Any claim not so made shall be deemed waived. The following shall be exempted from payment of the impact fee: 1. Alterations or expansion of an existing building where no additional dwelling units are created, where the use is not changed, and where no additional vehicular trips will be produced over and above those produced by the existing use. 2. The construction of accessory buildings or structures which will not produce additional vehicular trips over and above those produced by the principal building or use of the land and which will not be used for other than storage. 3. The replacement of a destroyed or partially destroyed building or structure with a new building or structure of the same size and use, provided that no additional trips will be produced over and above those produced by the original use of the land by the introduction of a use that generates more traffic. 4. The installation of a replacement mobilehome on a lot or other such site when a road impact fee for such mobilehome site has previously been paid pursuant to this Chapter, or where a mobilehome legally existed on such site on or prior to the effective date of this Chapter. 5. Surplus property sold by the Redding Redevelopment Agency, which is a remainder of land acquired for public improvements, or for mitigation of an environmental impact. B. Credits: 1. Credit shall not be given for site-related improvements, right-of- way ightof-way dedications, or providing paved access to the property. 2. All mandatory or required right-of-way dedications and/or roadway improvements made by a feepayer subsequent to the effective date of this Ordinance, except for site-related improvements, shall be credited on a pro rata basis against road impact fees required by this Chapter. Such credits shall be determined and provided as set forth in Section 16.43.120 B, 3a, b, c, and d. 3. A feepayer may obtain credit against all or a portion of road impact fees otherwise due or to become due by offering to dedicate non— site-related right-of-way and/or construct non-site-related roadway improvements. This offer must specifically request or provide for a road impact fee credit. Such construction must be in accordance with City or State design standards, whichever are applicable. If -9- IP • the Planning Director accepts such an offer, whether the acceptance is before or after the effective date of this Ordinance, the credit shall be determined and provided in the following manner: a. Credit for the dedication of non-site-related right-of-way shall be valued at (1) 115 percent (115%) of the most recent assessed value by the Shasta County Assessor; or (2) by such other appropriate method as the City may have accepted prior to the effective date of this Ordinance for particular right- of-way dedications and/or roadway improvements; or (3) at the option of the feepayer, by fair market value established by private M.A.I. appraisers acceptable to the City. Credit for the dedication of right-of-way shall be provided when the property has been conveyed at no charge to, and accepted by, the City. b. Applicants for credit for construction of non-site-related road improvements shall submit acceptable engineering drawings, specifications, and construction cost estimates to the Planning Director. The Planning Director shall determine credit for roadway construction based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if the Planning Director determines that such estimates submitted by the applicant are either unreliable or inaccurate. The Planning Director shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating his/her agreement to the terms of the letter or certificate and return such signeddocument to the Planning Director before credit will be given. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit. c. Except as provided in subparagraph "d," credit against impact fees otherwise due will not be provided until: (1) The construction is completed and accepted by the City or State, whichever is applicable. (2) A suitable maintenance and warranty bond is received and approved by the City when applicable. (3) All design, construction, inspection, testing, bonding, and acceptance procedures are in strict compliance with the then current City of Redding Public Works Improvement Standards when applicable. -10- i 117 d. Credit may be provided before completion of specified roadway improvements if adequate assurances are given by the applicant that the standards set out in Subparagraph "c" will be met and if the feepayer posts security as provided below for the costs of such construction. Security in the form of a performance bond, irrevocable letter of credit, or escrow agreement shall be posted with and approved by the City Attorney in an amount determined by the Planning Director. If the road construction project will not be constructed within one (1) year of the acceptance of the offer by the Planning Director, the amount of the security shall be increased by 10 percent (10%) compounded for each year of the life of the security. The security shall be reviewed and approved by the City Attorney prior to acceptance of the security by the Planning Director. If the road construction project is not to be completed within two (2) years of the date of the feepayer's offer, the City Council must approve the road construction project and its scheduled completion date prior to the acceptance of the offer by the Planning Director. 4. Any claim for credit must be made no later than the time of appli- cation pplication for a building permit or permit for mobilehome installation. Any claim not so made shall be deemed waived. 5. Credits shall not be transferable from one project or development to another without the approval of the City Council, and may only be transferred to a development in a different impact fee district upon a finding by the City Council that the dedication of right-of-way or road construction for which the credit was given benefits such different impact fee district. 6. In the event fee schedules are subsequently changed to reflect increases or decreases in construction costs or other relevant factors, then a feepayer may request within six months of the date the fee was paid a recalculation of credits to fairly reflect such changed circumstances. 7. Determinations made by the Planning Director pursuant to the credit provisions of this section may be appealed to the Planning Commission by filing a written request with the Planning Director, together with a fee established by Resolution of the City Council, within ten (10) calendar days of the Planning Director's determination. 16.43.130 Review. A. Except for the first year this Ordinance is in effect, no later than June 30 of each year, the Planning Director shall prepare a report for the City Council identifying the balance of fees in the Impact Fee Trust accounts, the facilities constructed, and the capital facilities to be -11- • Ask constructed. In preparing the report, the Planning Director shall adjust the estimated costs of the public improvements in accordance with the Engineering Construction Cost Index as published by Engineering News Record for the elapsed tine period from the previous July 1 or the date that the cost estimate was developed. The annual report shall also include a review of the administrative charge. B. The City Council shall review the report at a noticed public hearing and shall make findings identifying the purpose to which the existing fee balances are to be put, and demonstrating a reasonable relationship between the fee and the purpose for which it is charged. The Council may revise the transportation development fee to include increased construction costs or additional projects not foreseen as being needed, provided there is a relationship to the project in the benefit area. 16.43.140 Penalty Provision. A violation of this Ordinance shall be prosecuted in the same manner as misdemeanors are prosecuted; and upon conviction, the violator shall be punishable according to law. However, in addition to or in lieu of any criminal prosecution, the City of Redding shall have the power to sue in civil court to enforce the provisions of this Ordinance. 16.43.150 Severability. If any section, phrase, sentence, or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions thereof. 16.43.160 Effective Date. This Ordinance shall become effective 30 days following its adoption. Section 2. In compliance with California Environmental Quality Act (CEQA) requirements, the City Council reviewed EIR-3-79 prepared for this Project, finding that this benefit district is a mitigation measure identified in said EIR. /// -12- Section 3. The City Clerk shall certify to the adoption of this Ordinance and cause its publication according to law. I HEREBY CERTIFY that the foregoing Ordinance was introduced and read at a regular meeting of the City Council of the City of Redding on the 20 th day of Feb. , 1990, and was duly read and adopted on the 20th day of March , 1990, at a regular meeting of the City Council by the following vote: AYES: COUNCIL MEMBERS: Buffum, Fulton, & Carter NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: Johannessen L%rpt 714 i SCOTT CARTER, Mayor City of Redding ATTEST: ,ir6cc-rte ?e%�!�� "�„J ETHEL A. NICHOLS, City Clerk WORs�� P� ROVED: L+GGGa Ae.e, RANDALL A. HAYS, ity Attorney -13- .II 410 February 6, 1990 � !II'. EXHIBIT A i DANA DRIVE TRAFFIC BENEFIT DISTRICT SUMMARY CAPITAL IMPROVEMENT PROGRAM II I . Signals (subtotal ) $1,835,000 Canby Road/Dana Drive $120,000 Churn Creek Road/Dana Drive 60,000 (1) Hilltop Drive/Browning Street 115,000 Friendly Road/Browning Street/Mistletoe 100,000 Hilltop Drive/East Palisades Avenue -0- (2) Friendly Road/Old Alturas Road 120,000 Victor Avenue/SR44 Westbound Ramp 120,000 Eastbound Ramp 120,000 Friendly Road/Dana Drive 120,000 Old Alturas Road/Browning Street 120,000 Churn Creek Road/Old Alturas Road 0 (3) Victor Avenue/Dana Drive 110,000 Interconnect - Churn Creek Road 20,000 Browning Street/Churn Creek Road 120,000 New I-5 Interchange (4) 480,000 Victor and Old Alturas 110,000 (1) $60,000 paid per conditions of Target Center and Food 4 Less Center (2) The location is being built per condition of use permit for Toys AR" Us. (3) The location is being build per condition of use permit for Target Store. II. Turn Lanes (subtotal ) $ 80,000 A. Widen Dana Drive for extended eastbound to southbound right-turn lane at Victor Avenue $ 20,000 B. Eastbound approach Old Alturas right turn at Victor Avenue 20,000 C. Free right turns at Browning Street and Hilltop Drive (2) 40,000 II III. Road Widening (subtotal ) $2,060,200 A. SR44 Off-ramp Widening of the existing Dana Drive off- ramp to SR 44 will be necessary to allow a free-flow, right-turn lane northbound to eastbound at Dana Drive, estimated cost - 20,000 February 6, 1990 !.• SUMMARY CAPITAL IMPROVEMENT PROGRAM (continued) III . Road Widening (continued) B. Victor Avenue widening at Old Alturas Road may require culvert extension $ 50,000 C. Old Alturas Road. The existing two- ,' lane road between Bradford Way and Victor Avenue needs to be realigned and widened to four-lane arterial 300,000 !i D. Overlay and widen Dana Drive. The existing 20-foot-wide section should be overlaid and widened 30-32 feet between Bradford Way and Victor Avenue 150,000 E. Widen Browning Street between Churn Creek Road and Friendly Road 307,200 F. Widen Hilltop Drive/Highway 44 overcrossing 1,200,000 G. Widen Churn Creek Road between SAVI II ; property and Browning Street (1,100 ft. ) 33,000 t., IV. New Road Construction (subtotal ) $3,454,000 A. Ramp construction at Friendly Road, 1,610,000 ! including auxiliary lane in Hwy 44 11 y B. Browning Street extension from Friendly 11; Road extension to Old Alturas Road 244,000 C. Hilltop Drive overcrossing of I-5 1,500,000 D. Mistletoe realignment 50,000 E. Aspin Avenue realignment 50,000 V. Right-of-Way Acquisition (subtotal ) $698,750 A. Ramp relocation to Friendly Road (see Exhibit D) - 5.0 acres @ $60,000/acre 300,000 ' '` B. Dana Drive, Bradford Way to Victor Avenue - 1.47 acre @ $25,000/acre 36,750 C. Old Alturas Road realignment - 2.38 acres @ $25,000/acre 59,500 1 . 110 11, . February 6, 1990 SUMMARY CAPITAL IMPROVEMENT PROGRAM (continued) 1I V. Right-of-Way Acquisition (continued) D. Property acquisition - new interchange $200,000 E. Mistletoe realignment - 0.5 acre @ $60,000/acre 30,000 F. Aspin Avenue realignment - 0.5 acre @ $30,000/acre 15,000 G. Browning Street extension - 2.3 acres @ $25,000/acre 57,500 VI . New I-5 interchange at Hilltop Drive Overcrossing $3,500,000 SUMMARY Signals $ 1,835,000 Turn Lanes 80,000 Medians 20,000 Road Widening 2,060,200 New Road 3,454,000 Right-of-Way Acquisition 698,750 Future Interchange North of Hilltop 3,500,000 $11,647,950