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Home My WebLink About _ 4.2(b)--Grant Application - Economic Development AdministrationREPORT TO THE CITY COUNCIL MEETING DATE: February 20, 2024 FROM: Steve Bade, Assistant City ITEM NO. 4.2(b) Manager ***APPROVED BY*** Recommendation Authorize the City Manager, or designee, to execute all documents necessary to apply, accept, appropriate and implement the United States Economic Development Administration's Public Works and Economic Adjustment Assistance Program in an amount not to exceed $3,000,000 for infrastructure improvements located in the City of Redding Stillwater Business Park. Fiscal Impact Authorizing a grant application to the United States Economic Development Administration's (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program may result in a grant award of up to $3,000,000 with at least 50 percent required from local matching funds. Median household income, poverty indicators, indicators of economic distress, and disadvantaged community statuses may reduce the required local match to a 20 percent minimum. Matching funds may be cash, loans, bonds or in-kind and shall be unencumbered, unrestricted and committed at the time of award. Staff endeavors to provide match in the form of cash from Stillwater Business Park property sales and will bring back a final match plan to City Council (Council) prior to accepting the grant. It is estimated that the Stillwater Business Park Phase 2A project cost is $6,000,000. Alternative Action The Council may choose to not authorize a grant application to the EDA PWEAA Program. This action would require staff to identify alternative funding sources to assist with the Stillwater Business Park infrastructure development. Report to Redding City Council February 14, 2024 Re: 4.2(b) --Grant Application -Economic Development Administration Page 2 Background/Analysis The EDA is an agency of the United States Department of Commerce that administers programs that are intended to boost economic development as measured by job creation and retention. The PWEAA Program offers funding to projects that align with regional economic plans and are expected to create or retain high-quality, well -paying jobs. The PWEAA also recognizes the roles that infrastructure and public works facilities can play in economic development at the regional and local levels. Public works projects that serve to provide economic access are eligible for investment from the EDA as jobs are created by improving workforce access or commercial development in a given area, and each is scored by its alignment with regional economic planning efforts. On November 16, 2021, Council approved the Stillwater Business Park Phase 2 (Stillwater Phase 2) Project in the amount of $1.5 million. This project funded specific consultant costs needed to plan and design the infrastructure improvements for the Stillwater Phase 2 Project as well as staff costs related to project development that encompasses surveys, environmental clearance, right of way acquisitions with appraisals and design work for road construction, wet and dry utilities installation, storm drains, street lights and other necessary items. Infrastructure improvements for the Stillwater Phase 2 Project include improvements from Old Oregon Trail through the Park on Venture Parkway and concludes at the intersection of Fig Tree Lane and Airport Road. As part of this project, Dokken Engineering was contracted to provide 100 percent plans for the Stillwater Phase 2 Project. Funding for the development of the Stillwater Phase 2 infrastructure improvements is presently being compiled by staff. In an effort to source funding for the infrastructure improvements, staff wishes to apply to the EDA for PWEAA grant funds to construct the infrastructure. However, since only limited funds are available for the PWEAA grant, the PWEAA grant application will not be for the entire Stillwater Phase 2 Project, but for a portion of the Project from the current cul-de-sac terminus of Venture Parkway, south to the second bridge that crosses Stillwater Creek, resulting in a partial construction phase of approximately one mile. These frontage improvements would start from lot 12 and end at the City of Redding lot, adjacent to lot 16 wherein Redding Electric Utility will be building a future substation. The estimated construction cost for Stillwater Phase 2A of the project is $6 million. The maximum EDA PWEAA grant program limit is $5 million per project and grant advisors recommended submitting applications in the $3 million range to have better success outcomes. Therefore, assuming a 50 percent match, the requested EDA PWEAA grant will be for $3 million. Environmental Review Applying for grant funds is not considered a project under the California Environmental Quality Act (CEQA). The construction phase of the project is presently being reviewed for CEQA and National Environmental Policy Act compliance. Council Priority/City Manager Goals • Economic Development - "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community. Report to Redding City Council February 14, 2024 Re: 4.2(b) --Grant Application -Economic Development Administration Page 3 Attachments Previous Staff Report - November 16, 2021 REPORT TO THE CITY COUNCIL MEETING DATE: November 16, 2021 FROM: Chuck Aukland, Public ITEM NO. 4.11(g) Works Director ***APPROVED BY*** U and, Public Works s Direc:s 0� anap, m Do ' a, Dffcc r d 0 2c>o caukiand0a d.redding.ca.usbtippin@cityofredding.org SUBJECT: 4.11(g) --Stillwater Business Park Phase 2 Infrastructure Improvement Project Recommendation Authorize staff to develop a Request for Proposal for the design of infrastructure improvements for the Stillwater Business Park Phase 2 Project; and adopt Resolution approving and adopting the 19th Amendment to City of Redding Budget Resolution No. 2021-078 appropriating $1,500,000 for said purpose. Fiscal Impact The Stillwater Business Park Phase 2 Project is being funded by the General Fund. The attached budget resolution in the amount of $1,500,000 will fund ongoing project development costs for this project to ensure delivery timelines for prospective tenants. The General Fund has previous property sales to cover $650,000 of the projected cost, while the remaining amount is expected to be realized through near term property sales. The funding source of the construction of the necessary improvements has not yet been determined. Alternative Action The City Council (Council) may choose to not authorize funding for the design of Stillwater Business Park Phase 2 Project and provide staff with alternative direction. Without this project, the City of Redding (City) will not fulfill its obligation of providing a completed business park to its tenants. As developer, the City is responsible for providing adequate roadways, utilities, and various other infrastructure improvements to ensure the business park is useable for current and future tenants. Report to Redding City Council November 12, 2021 Re: 4.11(8) --Stillwater Business Park Phase 2 Infrastructure Improvement Project Page 2 Background/Analysis The City is responsible for infrastructure improvements at Stillwater Business Park, including street lights, paving, landscaping, and utility installation. At the mid -year budget review in February 2021, the Council approved an allocation of $500,000 out of the proceeds from land sales to fund the design of the infrastructure improvements at the Park. In August 2021, the Council approved the appropriation of $150,000 for the construction bid for Phase 1C of this project that included the installation of street lighting on Venture Parkway from the Stillwater Business Park entrance at Old Oregon Trail through the east side of the northerly Stillwater Creek Bridge. To continue the necessary road extension and utility work, staff is recommending an increase in project budget funds from the General Fund Capital Project Fund in the amount of $1,500,000. This additional allocation is needed for staff and consultant costs related to project development including but not limited to surveys, design, environmental clearance, and right of way acquisitions with appraisals for the remainder of the improvements. The design work will include road construction, wet and dry utility installation, storm drains, street lights and other miscellaneous items to complete improvements to Venture Parkway from Rancho Road through the south end of the park to Fig Tree Lane concluding at the intersection of Fig Tree Lane and Airport Road. The work will include widening projects along Rancho Road and Fig Tree Lane and intersection improvements that may include Rancho Road/Airport Road and also Fig Tree Lane/Airport Road. With the sale of additional lots, the improvements which were halted need to resume in order to adhere to what was intended with the development of the park. This additional allocation will be funded with property sales receipts. Property sales in this fiscal year are in excess of $900,000, and it is anticipated that this fiscal year will see an additional $3 million in proceeds from additional land transactions. Additional work on the park will be budgeted for completion in the coming months. Council Priority/City Manager Goals • Public Safety — "Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." • Economic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments Resolution Vicinity Map Exhibit 1 Previous Staff Reports - 08-03-21 and 02-16-21 (available online)